Baton Rouge Real Estate Information

Get the Buyer to Stay A Little Longer Viewing Your House

2015-07-10T16:29:00.000-07:00

It's hot out there and buyers are hot and tired by the time they look at a couple of houses. Want those home buyers to stay in your house and look at it a little longer - make them feel at home there? First, crank up that AC - get that temperature down so that it hits them when they first walk in. They will breathe a sigh of relief. They might even sit down for a minute - especially if you leave out some nice, cold lemonade - not in plastic cups they can take with them but regular glasses so that they have to stay in your house a little longer and enjoy the refreshments. I even had one seller freeze some fruit and then leave it out - cut in little chunks. Very refreshing! See if these tips don't help you get a buyer for your house to make the offer!!!

Why Is My Closing Delayed?

2015-07-02T05:55:00.000-07:00

This is a Big question I get from buyers and sellers - Why Is My Closing DELAYED?!!!! For a buyer, it is very frustrating as they have given the lender everything that was required at the beginning. Now, it's time to get ready to move and they are asking for even more documentation! And the buyer has to get an extension from the seller. What if the seller will not give them one? What if the seller received an acceptable back up offer for more money or from a cash buyer? Doesn't the seller have to extend since it's just a few more days?

First, the seller does NOT HAVE to extend. I have seen it happen. The seller is just waiting for the buyer to mis-step, ask for repairs, ask for extensions, etc so they can cancel that purchase agreement and go with a better one that they have received. Buyer asks, doesn't the seller HAVE to let us know they have another offer. That answer again is NO.

As a buyer, what can you do to prevent delays? I can't guarantee that you can prevent a delay to your closing but you can certainly hedge your bets by doing these items:

1. Make sure your taxes have been property filed timely. If you filed late, let your lender know up front BEFORE you write the offer, and see if that will pose any problems. This is probably the number one reason a strong buyer has their closing delayed.

2. If you have any issues that your lender sees up front BEFORE you write the offer, get those issues cleared up. If you need a vendor to make corrections to your credit report, you are at their mercy. They will get to it when they get to it. They have no vested interest in doing it timely for you. Get this done before before writing the offer on the house.

3. When you do your pre-approval, see if the lender sees any potential issues that needs to be addressed up front.

4. Ask you lender how long they need to close the loan (another big issue - you need to know how much time your lender needs - don't assume they can get it done in 30 days).

5. If getting a Rural Development loand know that they are always seeming to run behind. Your lender can tell you how much extra time you need to add to make sure you don't have to ask for an extension later on.

6. And perhaps, one of the best things you can do to make sure you close on time is selecting the right Realtor and have them recommend several lenders that they have had success with.

Call us today to help you purchase your home and close timely!

Five Steps to a Success Real Estate Closing

2015-06-18T06:24:00.000-07:00

In Louisiana, there are 5 MAJOR steps to a successful real estate closing that a seller should pay particular attention to. For the buyer, they are busy getting their loan approved and packing, and they really aren't aware that the seller's hands are tied until the buyer knows for sure that they are approved and can close. Imagine how the seller feels, when they are busy packing, their loan was approved weeks ago, and they are preparing for their move, only to find out the buyer doesn't qualify, or needs to provide another document to the lender, or the lender discovers at the last minute that the buyer has not filed their income tax for the year and that has to be completed in order to close. Very frustrating for all. And for the buyer, to find out at the last minute that they have an issue - how very disappointing. As I have said many times, do your homework up front - buyer get credit approved so that all you have to do is get an inspection and appraisal on the home you select. For sellers, don't disappoint the buyer by not taking care of the maintenance on your home which will show up in the home inspection!

So, here are your steps!

1. Purchase Agreement - yes, someone has to offer to buy and someone has to agree to sell - at acceptable terms for all. This really is step one!

2. Inspection - the home has to pass the inspection the buyer has on the home. It is not to turn an old house into the same condition as a new one but nobody wants to buy someone else's deferred maintenance. The sale can fall through right here if the buyer and seller are not in agreement on repairs.

3. Appraisal - the house must appraise for the sales price. A client asked me the other day why this was important. If the buyer is willing to pay $x then what's the deal with the lender! Seriously!! The bank is the one lending the money and if the buyer defaults, the lender ends up having to sell the house!

4. Loan Approval - as mentioned earlier, this should NEVER be an issue. Buyers, get this taken care of first!!

5. Closing - should be an exciting day but if the buyers file is randomly selected for review, closing can be delayed. If the seller has already moved out and the closing is delayed, where do they go? Who pays? Give the sellers a couple of days after closing to move out to make sure the loan closes. Sellers, if they give you a couple of days, make sure you give them a home in tip top condition - nice and clean!

The Pat Wattam Team at RE/MAX First strives to make sure our buyers and sellers are prepared so that there are no surprises and everybody knows they will have a successful closing! Call us today at 225-298-6900 and let us help you with the process!

The Settlement at Willow Grove in Baton Rouge, Louisiana

2015-02-25T21:05:00.001-08:00

Back in the day when I rode horses, a favorite place to ride was the Kleinpeter Farm on Perkins Road. Fast forward to today, and now we have this upscale planned community for people with a busy lifestyle - The Settlement at Willow Grove.

The rooftops tell the story of the types of homes you will find here Low maintenance yards, a feeling of community with the design of the subdivision. Central to that concept is the extensive incorporation of green spaces and tree-lined walkways opening to 10 beautifully designed parks featuring landscaped gardens, fountains and benches. At the back of the subdivision is a lovely park with playground equipment, pool with poolhouse, and ampitheater setting. Just imagine strolling the sidewalks or riding your bike to the pool.

Your neighborhood is self contained and yet, you are steps away from Perkins Rowe with restaurants, shops, and a movie theater and also the larger, Mall of Louisiana!

When you think of the homes for sale in the Settlement at Willow Grow, the first person you think of is Gayle Carmouche with LaFosse Home Builders. Her track record of bringing upscale homes to many owners in River Ranch in Lafayette has been repeated here in the Settlement at Willow Grove. Whether you are interested in one of her spec homes or a custom build, you will not find a builder more attentive to your needs. LaFosse Home Builders are represented by RE/MAX First Agents, Pat Wattam and Dorsey Peek.

At the front of the subdivision you will find the Village Village Center. A Bistro is already open and you can see the progress as the businesses are built. This harkens back to the idea of a village square, complete with brick pavers and an eclectic mixture of charming shops, restaurants and offices. Central to the center will be a pedestrian plaza featuring a 16 foot fountain, benches and trees, offering the perfect verandas for relaxing, sipping coffee or taking a stroll. Activities such as concerts and special events will beckon residents to the plaza to enjoy The Village’s ambiance and energy.

Located in the heart of Baton Rouge on Perkins Road between Bluebonnet and Siegen Lane - The Settlement at Willow Grove, coupled with LaFosse Home Builders, gives you a great selection of homes to choose from. For more information contact Pat Wattam at RE/MAX First.

Mardi Gras and the Spring Market

2014-03-02T06:25:00.000-08:00

After a winter we all are not used to, Mardi Gras, thank goodness, is here with good weather to boot. As the temps heated up this past week in Baton Rouge, 79 degrees, the buyers are back out looking at houses, offers are coming in - just a sign of things to come. With a strong economy and low unemployment, the Greater Baton Rouge Real Estate market will see another banner year in 2014. We always thought the 'Katrina' years would not be beat, but we proved ourselves wrong on that in 2012 on my team - our best year ever! Last year sales were even stronger. The best evidence of that is the amount of inventory on the market. Baton Rouge has shrunk to a 4 month supply of available houses, and Ascension Parish runs between 2 and 3 months. What has that done to pricing? So far, we haven't seen prices approach the Katrina years but if inventory remains low, prices have to rise. If interest rates remain low, then prices will climb. If interest rates rise, as expected, then prices will stay stable as they always have in our area. So, if you are thinking of selling, give us a call. We will help you decide what you need to do to get your house ready for market. If you are thinking of buying, then set up a buyer counseling interview so we can show you how to go about finding the perfect house and making it yours!! The Pat Wattam Team at RE/MAX First is always here to help!

Get Ready to Sell Your House in the Spring

2013-02-16T16:41:00.001-08:00

As winter slowly starts to turn to spring and flowers start blooming, grass turn green, and the weather gets warmer people start thinking about putting their home up for sale. There is a reason we have the majority of real estate closings in the summer - it's when children are out of school and moving is easier! For you sellers to get ready to capitalize on this, there are 3 main things you need to do to get your house ready for the spring market. 1. Have the home professionally inspected. You want someone to look at your home objectively. All of us live with little quirky things in our house, but the next buyer doesn't want to giggle the knob to make something turn on! It's better to find out the issues before you negotiate a price with a buyer and then they have a home Inspection and you now have to spend thousands of dollars on things that should have been taken care of earlier! I have seen this more often than not! Once you have completed the inspection and any repairs then move on to the next step! 2. De-clutter and de-personalize the house. Remember, you don't need to have all your personal collections out to show them off to the buyer. You want the buyer to be able to visualize themselves and their collectibles in their new home. Be brutal. Get rid of all that stuff! In staging we call anything smaller than a bowling ball 'house dandruff'!!!! I have a LOT of dandruff in my home and I'll bet you do too!!! So that special group of collections you have - whether it's snow village or all those family photos - all of that needs to be put away. Counter tops need to be cleared off, 90% of the stuff in the bookshelves needs to be boxed up and put away. And those closets! If yours looks like mine, then box it up, move it to climate controlled storage until it's time to bring it to the new house. Once you have de-cluttered and cleaned take a photo of each room with your cell phone. Take a hard look. This is how your house will look on the internet. Does it still look cluttered? Do you need to remove some furniture, take more things off the wall? If not, move on to the next, really fun step! 3. Now it's time to stage the house from outside to in. The outside has to be attractive to 'invite' a buyer inside. Fresh mulch and flowers can make the front of the house fresh - as will power washing the drive way and sidewalk as well as the house, or freshening up the paint with current colors (Please, no mauve, pink, blue, etc). Then, with the help of a stager or professional decorator you can make decisions on color. No weird or bight colors and as much as I love red - most people do not! You can't go wrong with warm neutral wall colors. You just have one shot at hooking a buyer so make sure that everything is ready before going on the market. Your house needs to be prettier than the competition. The neutral colors will help the buyer see their own furniture and decorations in the house and generate an offer for you! You want to make the buyer feel compelled to make an offer before they let it slip away! And give yourself a time frame and a budget to get the house ready. The Pat Wattam Team is here to help you make your dreams come true. Let us come take a look at your house with you and give you some tips and suggestions. We can show you what the other homes for sale look like so that you can decide how much of the house needs to be redone in order to sell. Give us a call and take advantage of the spring market!

Real Estate in Baton Rouge Flourishes!

2012-12-29T07:25:00.002-08:00

2012 was a banner year for real estate sales in Baton Rouge and surrounding areas. We won't have the final tally until the 2nd full week in January, but up to this point, our whole MLS has improved in sales volume by over 12%, with East Baton Rouge real estate sales volume up 15%! The number of homes for sale and the actual number of homes sold are up, the average sales price is a down a little, but this is a very healthy real estate market. If this trend continues, we could expect to start slipping into a 'sellers market'! The supply of homes for sale in East Baton Rouge is under 8 months but in Ascension is it under a 6 month supply. What does this mean? For sellers, the homes that are selling are not only priced competitively but are also in excellent condition - meaning the home is current on the colors, updates, etc. For the buyers, this means that the days of making low ball offers on homes is coming to an end. Personally, we had 7 homes last year with multiple offers on them where in 2011 we had none. Buyers, if you really like a house, make a good offer! To start your home search in the Greater Baton Rouge Area go to http://search.batonrougerealestate.com/idx/10545/advancedSearch.php and put in your criteria and see what you find! My team is ready to help you any time - whether buying or selling, give us a call!

Baton Rouge - a Happening Place for Memorial Day Weekend!

2012-05-25T12:49:00.002-07:00

Who would have thought that Baton Rouge, LA would be a destination for Memorial Day weekend! With Country Fest it has become just that - THE place to be this weekend. With top country acts such as Keith Urban, Carrie Underwood, and Rascal Flatts there is something for everyone! The fun starts Saturday at 11:30 at LSU's Tiger Stadium with Keith Urban starting his show at 10 pm. And then Sunday kicks off again at 11:30 and Rascal Flatts closes down with their set starting at 10pm. If country music isn't your thing, check out the Baton Rouge Concert Band's annual Memorial day concert at 7 pm Monday at the steps of the State Capitol. It's FREE!! And, today don't miss the LIVE after FIVE from 5-8 on North Blvd Featuring Brandin Giles. FREE Need to entertain the little ones? Saturday is Safari night at the Baton Rouge zoo. From 6:30-9:30 you can experience waling tours, animal encounters, and hands-on activities. Designed for groups of 15 minimum. Call 225-775-3877. Have a happy and safe Memorial weekend in Baton Rouge as we remember our service men and women.

Save Money on Your Utility Bill

2012-04-23T18:34:00.001-07:00

Save Money...Be Comfortable Automatic thermostats can lower your monthly utility costs while conveniently regulating your comfort by adjusting temperatures on your heating and cooling systems. These can be particularly effective in homes with zoned systems where you live in one area during the day but sleep in a different zone. There are programmable thermostats available at home improvement stores that can make the adjustments for specific times during the day and specific days of the week. They'll allow you to override the setting when needed without tampering with the programming. They'll even remind you to change your filter. An exciting development is the Wi-Fi enabled thermostat that allows adjustments from any Internet connection such as computer or Smartphone. Imagine how convenient it can be to change your temperature from the car before you get home. Reasonably priced under $100 for most models, it makes it easy to recapture the cost of the thermostat quickly. Most of the thermostats are designed for do-it-yourselfers; however, you can always have a heating and cooling professional install it for you.

Creating Home Inventory Can Save You Money!

2012-04-21T09:06:00.001-07:00

Have You Backed Up Your Home? Personal computers have been around long enough that everyone has experienced or knows someone who has lost their data due to a hard drive crash, accident or burglary. If they had a backup, the loss was inconvenient but not critical. Do you have a backup for your personal belongings? Not that you need duplicates of all the items but do you have a journal listing of all the items with a description and their approximate values? That record becomes the backup that supports the claim for your insurance. If a building sustains a total loss, the insurance company will usually pay the face amount of the policy. When it comes to personal property which might be 40% to 50% of the insured value of the dwelling, the insurance company is going to expect an accounting with receipts or at least, a relatively recent inventory. The better your inventory, the less likely you'll have difficulty with the claim. Almost everyone has a digital camera that can take stills and probably even videos. The combination of the images as well as a written description will help you replace the belongings and serve as proof to the insurance company. Once you've made the inventory, store it off site for safe keeping. Online storage in the "cloud" might be the best place to insure you'll always know where it is. Contact me for a free Home Inventory form; it's my way of helping you be a better homeowner.

2012-04-09T19:58:00.001-07:00

MID Limited per Residence A recent U.S. Tax Court ruling clarified the IRS position that the $1.1 million limit for mortgage interest deduction applies per residence and not per taxpayer as some high-priced homeowners were hoping. A married homeowner filing jointly can have fully deductible interest on a mortgage of up to $1,000,000 of acquisition debt and up to an additional $100,000 of home equity debt. If the married couple files separately, each party is limited to deducting the interest on half of those maximum amounts. The court case came about when two unmarried individuals who owned a home together as joint tenants felt that they were entitled to deduct the interest on $1.1 million of debt each. IRS did not agree with their understanding and neither did the Tax Court. The Court ruled that the limits apply per residence, not per taxpayer even if a home is co-owned by unmarried taxpayers. The result for the taxpayers in this case was that their deduction was cut in half resulting in much more income tax due. While this situation only affects a few taxpayers, homeowners in this position should have a discussion with their tax professional.

The homes, the places, the lifestyle in the Garden District in Baton Rou...

2010-07-01T20:53:00.000-07:00

Greater Baton Rouge Real Estate Market Update

2010-05-19T08:03:00.001-07:00

This graph shows how steady the Greater Baton Rouge Real Estate Market remains. Our average price has remained this steady pretty much for the past 5 years. Of course, after hurricane Katrina we did see a bump in prices, but those leveled out pretty quickly. We have a very healthy real estate market with an average days on market now of about 92, if you look at East Baton Rouge, Ascension, and Livingston grouped together.

We do have more homes on the market but plenty are selling. If you want to keep up with homes for sale and sold with 1/2 mile of your house in the Greater Baton Rouge Area, you can sign up for an automated, monthly service from Market Snapshot.

As always, please let us know if you have any real estate questions you would like us to answer or, if you are planning a move, give us a call to help you make it as smooth and stress free as possible!! Pat Wattam

Downsizing? Consider a Condo!

2010-02-22T19:19:00.000-08:00

Shopping for a Condo? Ask These 4 Questions before You Buy

Condominium homes have always been, and will likely always be, an efficient and economical route to becoming a first-time homeowner. They can offer the comfort, prestige, and even luxury appointments that apartment living may lack, often at a cost that is not much different than rent. With the current first-time home buyer tax credit and the deadline for the move-up tax credit fast approaching, I advise you move fast on any condo purchase you may be considering.

With my experience as Member of the Top 5 in Real Estate Network®, I am well aware that not all condominiums are the same, however, so make sure you ask the following four questions before you buy:

What will you own? Read the bylaws and be sure you understand what you will be responsible for and what belongs to the condo association. Will you own the boat dock at the back of your unit? Can you elect to build a spa on your patio? Generally, unit owners own and are responsible for the interior of their condos, while costs for outside maintenance including common areas and sewer lines are the association’s responsibility.

Who lives there? Are the majority of residents owners or renters? Owners generally take more interest in proper maintenance and are more willing than renters to serve on the association board and enforce complex rules and regulations–including the regular collection of homeowner dues.

How effective is the homeowner’s association? Do they have legal counsel, reasonable funds and a capable, caring volunteer board? One way to judge is to check with residents about restrictions, oversight and timeliness of repairs and upgrades. Another is to take a hard look at the grounds and be wary of signs of neglect.

What about special assessments? The association should have the power to special assess for needed, one-time large expenditures. Otherwise, things that need to be done may never get done at all, leaving the complex vulnerable to disrepair and lowered property values.

Don’t miss this great opportunity to become a homeowner or to downsize by buying a condo (remember, the move-up tax credit does not require you to move to a larger or more expensive home). Please e-mail me for more tips on buying a condo and forward this information to any family and friends who may be in the market as well.

Top 5 Facts You Need to Know about the Expanded Home Buyers Tax Credit

2010-01-28T09:46:00.000-08:00

Our real estate market has really heated up due to the expanded tax credit. I wanted to make sure everyone has as much information as possible. One of the requirements for becoming a Member of the Top 5 in Real Estate Network® is to provide my community with critical real estate information so you can make the best possible decision when buying or selling a home. To that end, I wanted to pass along some key facts about the extended and expanded tax credit that are critical for you to understand in order to take advantage of this opportunity:

1. Eligibility: The tax credit is now available for first-time home buyers and eligible current homeowners. A first-time home buyer is an individual who has not owned a principal residence during the three-year period prior to the purchase. This law applies for both parties in a married couple; if you haven’t owned a home for three years, but your husband has, then neither one of you can qualify for the tax credit. A qualified current homeowner who wished to move to a different home, must have owned and resided in their residence for five consecutive years out of the last eight.

2. Salary requirements: Single taxpayers with incomes up to $125,000 and married couples with a joint income up to $225,000 qualify for the full tax credit. Single taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.

3. Amount of credit: The maximum credit amount for first-time home buyers is $8,000; the maximum credit amount for current homeowners is $6,500. The federal tax credit amounts to 10% of the cost of the home, up to a maximum credit of $8,000 for first-time home buyers and $6,500 for current homeowners. Under the new legislation, a tax credit may only be issued for homes purchased for $800,000 or less. The tax credit is a true credit—it does not have to be repaid unless the homeowner sells or stops using the home as their principal residence within three years after the purchase.

4. It’s refundable: The tax credit is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if you owe no tax or the credit is more than the tax owed. The credit is claimed using Form 5405, which you file with your original or amended tax return.

5. Timeline: The credit is available for homes purchased on or after November 7, 2009 and before May 1, 2010. The federal income credit can be claimed on one’s individual or joint tax return for the purchase of any single-family home (newly-constructed or resale, single-family detached, townhomes or condominiums) between the dates of November 7, 2009 and April 30, 2010. Home purchases subject to a binding sales contract signed before May 1, 2010 will also qualify for the tax credit as long as closing occurs by June 30, 2010.

For more information on the home buyer tax credit, e-mail me or visit www.irs.gov.

Time is of the essence since properties must be under contract by the end of April 2010. For sellers who want to take advantage of this, they need to get their homes on the market ASAP. Please contact me or visit my web site at www.BatonRougeRealEstate.com for more information.

Good News for Baton Rouge Real Estate

2009-06-24T07:29:00.000-07:00

As we have continually tried to let everyone know, the economy in the Greater Baton Rouge area is doing just fine. We were listed as the #8 city to best weather the recession. Then today, the news had an article showing that we are on a list of markets with the best expected performance in home prices over the next 12 months, among area with populations greater than 600,000. This is something I have been saying for months. Although the number of sales is off about 20% overall, the prices for our homes remain steady. It's true if you purchased a home at the height of the Katrina days and want to sell it now, you will probably lose money. But for most of our clients, this is a great time to buy or sell real estate. The Baton Rouge Real Estate market is doing just fine!!

Get Ready for the Spring Market and Spruce Up the House

2009-04-05T17:53:00.000-07:00

Curb appeal is the first thing the buyers see when they are driving in the neighborhood. Whether they will choose yours depends on whether the outside is appealing. In the Greater Baton Rouge Real Estate Market the buyers have a lot a homes to choose from. Let's make sure yours is one that they put on their list to visit! First, now that spring is here and the weather is really so beautiful, I think it's safe to go ahead and put in some pretty, colorful flowers! You need to have enough that attract attention but aren't too overwhelming where the buyer thinks taking care of them will be too much trouble! If you don't have a green thumb, just ask your local garden center what flowers are easy to grow and that don't require a lot of maintenance!!

After viewing your home one of the last places the buyer checks out is your backyard, so don't skimp on landscaping in this area. Many times the front of the house will be loaded with beautiful landscaping, then there is nothing in the backyard!!! At the very least, get some inexpensive plastic pots (large ones - the ones that look like clay) and fill them with beautiful flowers - and if they die, just replace them with some more!!!!

So, spend a little time outdoors - enjoy the beautiful weather AND get your home ready for the spring market. Before you know it, the buyers will be making appointments to see YOUR home!!

How the Economic Stimulus Package will Move the Real Estate Maraket

2009-02-23T10:05:00.000-08:00

We all know something must happen throughout the country to get the economy going again. I never realized how important the real estate industry, as a whole, affected the whole world. If people can't buy houses, then the paint, flooring, appliance, and home decorating businesses are hurt as well as the people who clean those buildings, do their taxes, and so on. So, even though the Stimulus package didn't have everything the National Association of Realtors was hoping for, it's a start.

For the greater Baton Rouge Real Estate Market, it will just help get us back on track once the first time home buyers are able to buy, then our move up buyers will get to take the next step, and on and on!!! With rates at a historical low again, what a great time to buy any house!!!

Below is the basic information on the Stimulus Package:

Tax Credit for Homebuyers
First-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction – a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.
The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.

Tax Credit Versus Tax Deduction
It’s important to remember that the $8,000 tax credit is just that… a tax credit. The benefit of a tax credit is that it’s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a homebuyer were to owe $8,000 in income taxes and would qualify for the $8,000 tax credit, they would owe nothing.

Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a homebuyer is liable for $4,000 in income tax, he can offset that $4,000 with half of the tax credit… and still receive a check for the remaining $4,000!

Phaseout Examples
According to the plan, the tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000.

To break down what this phaseout means to homebuyers who are over those amounts, the National Association of Homebuilders (NAHB) offers the following examples:
Example 1: Assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time homebuyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.

Example 2: Assume that an individual homebuyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.

Remember, these are general examples. You should always consult your tax advisor for information relating to your specific circumstances.

Homes that Qualify
The tax credit is applicable to any home that will be used as a principle residence. Based on that guideline, qualifying homes include single-family detached homes, as well as attached homes such as townhouses and condominiums. In addition, manufactured or homes and houseboats used for principle residence also qualify.

Higher Loan Amounts
More good news – there is an extension on the additional tier of conforming loan amounts which had been first established in 2008. This tier of home loans are those greater than $417,000, and with a maximum that depends on the area, but is not greater than $729,750. These loans will again be eligible for rates that are slightly higher than conforming loan rates, but less expensive than the standard “jumbo” loan rates.

Additional Housing-Related Provisions
Tax Incentives to Spur Energy Savings and Green Jobs — This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.
Landmark Energy Savings — This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.

The Economic Stimulus Plan is huge, and impacts a number of industries. I’ve highlighted some of the major provisions that may impact you now and in the future.

As always, if you have any questions or would like to discuss how this may specifically impact you, I’d be happy to sit down with you. Just call or email me to set up an appointment.

An Exciting Time to Buy a Home

2008-09-20T18:09:00.000-07:00

With the roller coaster ride Wall Street is experiencing, again, many people are reconsidering the stability of real estate as an investment. You know, even in the markets that are suffering, it is a great time to buy because of the ability to buy a GREAT house for a low price. I would be all over that if I were in that market!!! I mean, people can actually buy the dream home that could not have began to afford several years ago. Even if they lose money if they have a house to sell, they will more than make up for it on the home they are buying.

If you aren't in a depressed market, the fact that interest rates dropped below 6% (we were getting 5.5% one day last week!) allows anyone to take advantage of their market! Here in the Greater Baton Rouge Area not only do we have low interest rates and good loan products if you have a decent credit score (560-580) we can find a loan product that meets your needs. We also have the First Time Home Buyer Bond Money that is now available, Rural Development Loans with 100% financing (and you don't have to be in a rural area to take advantage of this program), plus FHA loans with only 3% down!!!

This is a very exciting time to be in the real estate market!!

Redefining Retirment and Housing Options

2007-09-26T18:26:00.001-07:00

As many boomers, such as my husband, are approaching retirement, so many choices need to be made! How many of us really prepare for retirement? How many husbands and wives have had the discussion about what they expect in retirement? I think you would find that husbands and wives, (or life partners) have totally different expectations of what they want retirment to look like! I know that my husband and I haven't talked a lot about it. I think guys just don't talk a lot to start with because it is their nature to do something where it's a woman's nature to talk about it, a lot, make plans, etc!

A few things we have discovered over the past two years, in preparing for this day: 1. You really need to have your financial plan in order. We have worked very hard to put as much in our retirement funds as possible, have sought professional advice on the decision to take early retirement and what we will do to make up for the loss of income. 2. We have a plan, although pretty sketchy, on what his new role will be (yes, he is very brave as he is joining my team!) 3. We have bought two retirement properties that are also income producing - so we have fun places to go that aren't too far away and yet because we are both still working, they are in areas that rent well.

As a REALTOR, I know that listening to my client as they approach home buying and retirement at the same time is crucial. Helping guide them on buying the home of their dreams, or downsizing here in our area so that they have adequate funds to buy a retirement property in a different area.

AND speaking of buying in a different area - if you are thinking of buying retirement property in a different area here are some more suggestions: 1. Rent a property there during the worst time of the year - how about Florida in July and August, or Canada in January and February!!! 2. If you are considering purchasing real estate in a foreign country, you need to truly understand the laws on home ownership and your money. In some countries the only way to purchase is to give your money to an attorney who then purchases the property for you....and you had better know this person VERY well and have total TRUST!! 3. Is the community an open one who will welcome newcomers - or is it a place where people have lived all their lives and you will be an outsider 4. Will your friends and family want to visit you in this new location or will you have to travel to see them. 5. Will this new property appreciate in value so that when it's time for a move to a retirement facility you will have the money you need.

Retirement can be exciting! As much as I first rejected the idea of my husband taking early retirement, now I can see the benefits! Life is too short! If we like to go hiking and traveling, then we need to do that now while we are physically able to do so! If you like spending time with the grandchildren as an active adult and bond with them while they are small, then now is the time!

Make your plans and live your dreams today!

Great Real Estate Market? Time to Buy a Vacation Home!!

2007-01-17T18:38:00.000-08:00

While the rest of the country is confused about where the real estate market is headed, here in Louisiana we are still forging ahead. It's interesting that historically when the rest of the country was experiencing unprecedented appreciation, our market would be just the opposite. It's nice to be the opposite of rest of the country now as our average sales price continues to increase. Of course, with that we are also experiencing a shortage of inventory in different segments of our market. Gone are the days when you can find a $100,000 home in many areas of Baton Rouge.

With interest rates continuing to remain around 6%, it is still such an excellent time to purchase. With that in mind, maybe it's time to think about buying that vacation home! We were fortunate enough to purchase a condo on the Diversion Canal two years ago and although it's only 40 minutes from our home, it feels like we have really gone on vacation - and yet it is close enough that we can run down anytime.

A vacation home doesn't have to be an expensive condo in Gulf Shores (although that is a GREAT idea!) but someplace you can get away and relax. St Francisville, any waterfront area from the Tickfaw to False River to the Diversion Canal - we have plenty of choices. Think about how you would enjoy a lazy weekend and seek out those places. You know you can always count on us to help you shop!

Updated Market Statistics

2006-04-05T15:50:00.000-07:00

It is so interesting to keep up with the market changes in the Greater Baton Rouge Area. We are still feeling the effects of Hurricane Katrina but in a good way! Our market has shown some fluctuation over the past 4 months but it is easy to spot the trend that is happening. I want to share some numbers with you.

Number of Closed Properties Average Sold Price Average Days on Market %SP/LP

Dec: 808 $162,312 71 98.08%

Jan: 734 $175,366 78 97.69%

Feb: 726 $169,438 77 97.84%

Mar: 922 $178,078 79 97.70%

You can see that our spring market has kicked in. I can personally tell you that homes priced under $200,000 that are NOT overpriced, and in good condition, sell very quickly. Homes that are not in top shape, and over priced (think Katrina pricing!) are still sitting there.

The jump in homes sold I feel is due to our regular buyers, not the people displaced from the hurricane, getting back into our market. Interest rates are creeping up but are still just a little over 6% on a 30 fixed, conventional loan.

Homeowners Insurance Concerns

2006-03-27T19:17:00.000-08:00

It has been noted by serveral insurance agents in the Greater Baton Rouge area that our homeowner insurance rates will go up in many instances to 40% more than we are currently paying. Part of this will be a tax to help pay for hurricane Katrina rebuilding and part of it will be rate increases for the individual insurance companies to recover some of the costs from this event. I have also been advised that wind damage may not be covered by our homeowners insurance and that coverage would have to come from the FAIR plan - which is pretty expensive. When questioned about what we can do about these rates, I was told the best thing is to raise your deductibe. I personally told my homeowner insurance agent several years ago to flag my file anytime a rate increase occurs. That way I can see how much I have to raise my deductible to keep my premiums reasonable. I suggest that everyone contact their insurance agents to check this out and to stay on top of this so you are not blind sided with a huge new premium.

Spring Market is Here for Housing!

2006-03-09T10:07:00.000-08:00

Yes, we can tell spring is here due to the number of calls we are receiving. People are enjoying the beautiful weather and looking for homes. We have had some great financing news for our area. Since the Greater Baton Rouge Area is in the hurricane disaster area, the Bond Authority is waiving the rule that you must be a first time home buyer to qualify for bond money. That means, if you fit the other criteria of income, credit score, etc., then you may be able to get bond money with a rate between 4.8-5.6%.

A quick update on new construction. We had 183 new homes come on the market in February in the SE Baton Rouge, Ascension, and Livingston areas - bringing to a total of 509 new construction homes on the market. During that same period, 169 new homes went under contract. The average sales price for new construction for the past 4 months was $215,000 for those areas. However, with the cost of materials due to the hurricanes, the new homes are averaging an asking price of $236,000.

A snapshot of the past 4 months home sales, including all ages, all of East Baton Rouge Parish, Livingston, and Ascension shows an average list price of $184,000 with an average sales price of $180,000. We are seeing the average sale price steadily increase, probably due to the number of new construction homes that are finally closing that were sold during Katrina.

We expect the housing market to remain strong with good inventory to choose from.

Market Statistics Shows Market Stable

2006-03-02T20:09:00.000-08:00

In researching the continuing concern the public has with the effect hurricane Katrina had on our real estate market I found some interesting numbers. We currently have a 4.26 month supply of homes on the market for Ascension Parish, E Baton Rouge Parish, and Livingston Parish. That is almost the same as March of 2005 as well as July 2005.

I also checked the average sales price, which is $168, 153 for the month of February 2006. That compares with $168,864 for August 2005, prior to Katrina. Now, it is difficult to just look at a one month average, and if you compare that to last January, we are $15,000 ahead. If we do a 6 month snapshot, then the average sales price is $176, 403 with an average days on market of 70. So it appears that our market is holding on to the gains it experienced after hurricane Katrina sales settled down.

Interest rates are still hovering around 6% and with the bond money no longer being tied to first time home buyers, this will be another great year for buying and selling in the Greater Baton Rouge market!