First Time Home Buyer Tax Credit: Don’t Let These Items Eat Up Your Anticipated Credit
June 17, 2009 by Lisa Heindel
Filed under For Buyers, Real Estate Talk
Many first time home buyers are jumping into the real estate market, determined to find their dream home before the expiration of the 2009 Homebuyer Tax Credit on November 30, 2009.
Before you start counting on that $8,000 check from Uncle Sam, be sure that there won’t be any surprises come tax time.
Did you know that your tax credit could possibly be reduced for the following reasons?
- Outstanding garnishments against your wages
- Unpaid student loans
- Unsettled obligations to the IRS
As always, you should check with your accountant or other tax professional for advice regarding your specific situation.
The West Bank Living Team provides local, professional real estate services to buyers, sellers and military relocations to and from NAS JRB New Orleans. It would be our pleasure to assist you with all of your real estate needs.
How Do You Choose a Home When There Is So Much To Choose From?
May 7, 2009 by Lisa Heindel
Filed under Blog, For Buyers, Real Estate Talk
From Algiers to Avondale, there are currently over 1,100 homes for sale on the West Bank of New Orleans.
That’s right. Over one thousand homes for you to choose from, and that’s just single family homes. Expand that to doubles and condos and there are over 1,200 units for sale - an overwhelming number.
So How Do You Make A Choice?
Your choice in homes will be made a whole lot easier when you take these things into consideration first and communicate them to your West Bank real estate agent.
- Budget
- Needs
- Wants
Your Home Buying Budget
The first step is to establish your home buying budget and the place to do that is with a reputable, local lender. A mortgage professional can help you determine what price range you can afford, along with educating you about any special financing or programs you may be eligible for.
Need a referral to a lender? Contact the West Bank Living Team.
Your “Must Haves” in a Home
What are the absolutely most important features for you in a home?
- Is it the number of bedrooms?
- A particular neighborhood?
- A yard that’s big enough to add a pool?
- A short commute to your job?
These are the things you should consider before going home shopping, as they will help you stay on track and not waste time looking at houses that don’t meet your basic needs.
Remember though, that if your criteria is very unique it may take some time to find the right home for you. Before you get frustrated, consider whether all of the “must haves” are truly things you cannot live without. Tweaking your search criteria many times can lead to a previously overlooked home that fits perfectly in your life.
Your “Nice to Haves” in a Home
The “nice to haves” are the things that make you choose one home over another when price, condition and location are all equal. It could be that extra room you wanted for an office or it could be the newly remodeled kitchen that perfectly fits your taste.
When it comes down to choosing between several different homes, go with your gut instinct. After all, this is the place you’ll be coming home to every day, and if a certain house seems to be calling your name, then I say that’s the one for you!
Before you start looking for your next home, give us a call. Providing the market information and professional advice you need to make the right decision is what we do.
When you are ready to make a move, the West Bank Living Team provides local, professional real estate services to buyers, sellers and military relocations to and from NAS JRB New Orleans. It would be our pleasure to assist you with all of your real estate needs.
A Not So Short Discussion of Short Sales
March 24, 2009 by Lisa Heindel
Filed under Blog, For Buyers, For Sellers, Real Estate FAQ, Real Estate Talk
For the longest time, I kept reading about the short sale woes of my Realtor friends in other states. I couldn’t understand what all of the fuss was about, since I just wasn’t seeing very many of them in the New Orleans area and had no concept of how difficult these deals can be.
That’s not the case anymore. More and more often, I am running across short sale listings on the West Bank and so I realized it was time to address them.
Imagine this…
You worked hard, saved your money and bought the home of your dreams. Between downsizing companies and a rough economy, you can no longer afford to pay your mortgage each month. You are trying to sell your home, but owe more than it’s worth in today’s real estate market. You don’t have the cash to pay the difference between what a buyer would be willing to pay and the balance on the mortgage.
What can you do? A short sale may be the solution to avoiding foreclosure.
What is a short sale?
A short sale occurs when the lender agrees to accept less than the balance owed when a property is sold.
But the words “short sale” are a misnomer because it can be a very long road getting to that agreement.
First, the home owner must prove that they are suffering from a financial hardship by supplying a letter that outlines why they are unable to continue making payments on the home (for example a job loss or reduction in pay).
Additionally, the seller must provide documentation of their financial situation in the form of a current financial statement, 2 years of tax returns, recent pay stubs, copies of bank statements – basically the same information that a lender would request when applying for a loan.
The bank collects all of this information and…..sticks it in a file somewhere on the desk of an employee with hundreds of other files without actually telling the home owner if they will or will not approve an amount less than the balance owed.
Until an actual offer is received on the home, neither the agent or the seller know if the bank will approve the sale. And when that offer IS received, it can take months to get an answer from the lender.
Real life example: I wrote an offer on a short sale listing in November 2008. As of today we still do not have an answer from the lender – over 5 months later.
In my opinion, the banks are being short sighted in how they are handling these requests. They have mortgage holders who are sincerely trying to negotiate the best deal for their property to pay off as much of the loan as possible and avoid the credit damage caused by a foreclosure. Going to foreclosure is an expensive process for a bank and generally adds months to the time it will take for them to recoup their investment in a property. But they are making busy work for themselves getting in the way of willing buyers and sellers every step of the way.
From a buyers perspective, it’s faster and easier to negotiate and get to a closing with a foreclosed property than with a short sale – at least with a foreclosure the bank has a price in mind and the time it takes to get from offer to closing is reasonable. Too often, buyers wait for months only to receive no answer on a short sale, causing them give up and move on to purchase a different home.
How is this process helping anyone?
For professional, local real estate advice and representation, contact the West Bank Living Team. It would be our pleasure to assist you with all of your New Orleans West Bank real estate needs, including foreclosures and short sales.
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Dear Buyer: Nothing Personal, But You’ve Been REJECTED!
March 16, 2009 by Lisa Heindel
Filed under Blog, For Buyers, Real Estate Talk
The headlines and newscasts keep repeating doom and gloom for the real estate market from sea to shining sea. Obviously they missed the breaking news that all real estate is local and not every seller is ready and willing to take a rock bottom price for their home.
This week, I received an offer on a great home for sale in Harvey. I have a motivated seller who has looked closely at the market and what homes are selling for in the neighborhood. He then made a deliberate choice to price his home lower than any of the others in order to make it appeal to the largest number of buyers. And it’s working. I’ve had more showings on this home than on almost any other house I have listed, and I’m sure that it will be sold soon since it’s priced right, clean as a whistle and move in ready.
So I really felt sorry for the young couple who came with their agent and fell head over heels in love, only to find out that their very low offer was flat out rejected after we determined it was the most they could afford to pay. It was a waste of time all the way around for everyone involved and it could have easily been avoided.
When working with home buyers, one of the first things we do is arrange a meeting with a local lender who can pre-qualify them. It’s not a hard process…you give them your financial information in exchange for a loan approval and a budget for what you can afford to pay for a house.
Things we do to help you find a home
- Find out what type of financing you’ll be using (conventional mortgage, FHA or VA financing)
- Determine if you have enough funds for the closing or if you need a little help in that area
- Ask a lot of questions about your wants and needs
- Use all of our resources to provide you with a list of homes that meet as many of your wants and needs as possible while staying within your budget
- Use our market expertise to bring to your attention those homes that may be slightly out of your price range, but that we know are priced too high and probably have room for negotiation
Things we DON’T do to help you find a home
- Bring you to a neighborhood that is way out of your price range
- Allow you to get excited about living in a home that you can’t afford
- Write an offer that we know has a snowball’s chance in hell of being accepted
- Set you up for rejection and disappointment
It is your agent’s responsibility to represent your best interests, not to be the cook throwing spaghetti against the wall to see what sticks. Let’s sit down, determine your wants, needs and budget and keep you from getting this response on your next offer…
For professional real estate services across the West Bank of New Orleans, please contact the West Bank Living Team. It would be our pleasure to help you buy or sell your next home.
Public Auction “How To” Class to be Offered by the City of New Orleans
March 7, 2009 by Lisa Heindel
Filed under Blog, For Buyers, Real Estate Talk
All of those page long advertisements in the newspaper list the opportunity for someone to scoop up a house at auction. Have you ever wondered what happens at those events taking place at City Hall? Here’s your chance to learn all about it.
On Wednesday, March 11, 2009, Orleans Parish Civil Sheriff Paul Valteau will be holding a free class on the ins and outs of buying property at public auction. Buying at auction is definitely not for everyone, especially first time home buyers, but if you are interested in learning more show up at Room 319, 421 Loyola Drive. The class lasts from 7-9 pm and is open to the public.
For more information, visit www.civilsheriff.com.
Are you looking for a West Bank real estate bargain? Contact the West Bank Living Team for an up to date list of homes that fit your budget.
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