Flat Fee MLS, For Sale By Owner, Home Buyer Rebates

Richmond and Central Virginia area home buyers now have a new way to save on their real estate purchase. Bloomkey has launched a local area website, HomeBuyerConnect.com designed to reward Internet home shoppers for finding and previewing homes on their own to purchase. Through the new program buyers can receive a rebate on their home or other residential real estate purchase when they use the Internet to locate property for sale.

Since over 75% of home buyers now begin their shopping experience on the Internet, this is the perfect way to compensate them for doing the legwork of finding their home on their own. Consumers who would like to take advantage of a cash rebate as closing can now register at HomeBuyerConnect.com to take advantage of the savings of up to 1% of the purchase price of their home or more.

For more on ‘How it Works’ visit, www.homebuyerconnect.com/buyer-rebates/how-it-works.

The federal home buyer tax credit may have ended on April 30, 2010, however home buyers at Bloomkey.com can still take advantage of tremendous savings. Bloomkey’s Home Buyer Rebate Program allows home and property purchasers in selected markets to receive a rebate on their home purchase. With the easy access to real estate property for sale information that now exists via the Internet, real estate buyers are now able to locate and visit properties on their own, without the help of a real estate agent. Bloomkey rewards home buyers for doing the “leg work” by rebating a portion of the buyer agent’s commission back at closing. The way it works is that purchasers who register Bloomkey as their buyer agent prior to or at the time of visiting a property for sale, may sign up at Bloomkey.com to have their real estate purchase contract drawn up by Bloomkey. Bloomkey, as a state licensed broker and member of the Multiple Listing Service can then act as the buyer agent in the transaction and receive a portion of the commission paid by the seller. For doing the contract preparation and negotiaion, Bloomkey retains a flat-fee from the buyer agent commission and credits the purchaser with the remaining balance of the commission based on fee schedule posted at www.bloomkey.com/buyer_rebate. So, for instance, on a property sales price of $300,000 with a buyer agent commission paid by the seller of 3%, Bloomkey would retain a flat-fee of $2,500 and the buyer would get a rebate/credit at closing of over $6,500.00!!! For more information on how you can still get a credit for buyer your next home with Bloomkey, visit: http://www.bloomkey.com/buy_a_home today.

With less than a month left to take advantage of the home buyer tax credit, home buyers must act quickly. To take advantage of this once in a lifetime opportunity for a government handout, you must have a home under contract before April 30th, 2010 and close before July 31, 2010. First-time homebuyers may qualify for up to $8,000, while those who are trading up could get as much as $6,500. This is probably your last time to claim the credit so don’t wait around hoping for a 3rd extension.
Lawmakers seem unwilling to extend the credit again after the last extension brought about generally weaker sales than the first time the credit was enacted.

Not every buyer qualifies for the credit. Here are some guidelines:

Homebuyers who have not owned a home for the past three years may earn up to $8,000 or 10% of the purchase price, whichever is lower.
Buyers who have owned a home for five consecutive years of the past eight qualify for up to $6,500 in credits.
There are income limits of $125,000 for single taxpayers and $225,000 for couples.
Anyone paying more than $800,000 for the home cannot claim the credit.
There’s a prohibition on claiming the first-time homebuyer credit if either member of a couple owned a home within the three-year period. They can claim the existing homebuyer credit.

Homebuyers who are under 18 or are listed as dependents on the tax returns of others don’t qualify. The home must be kept at least three years.

The credit may be claimed on 2009 taxes, even if the return was already filed. Just submit an amended return.

Note that buyers get the full amount of the credit they’re due even if that exceeds the amount of taxes they owe.

According to a Reuters/University of Michigan poll, 76% of consumers polled believe now is a good time to buy a home. Economists in the Reuters poll said the bottom of the housing market has probably been reached. Home prices unexpectedly slipped in December but the annual rate of decline slowed Standard & Poor’s/Case-Shiller indexes showed on Tuesday. “Since April of 2009 [this is] the most dramatic [housing market] turnaround that we’ve seen in our data all the way back to 1987″, Yale University economics professor Robert Shiller, a creator of the S&P Case-Shiller indexes, said on a conference call.

According to the Fed’s most recent “flow of funds” survey, homeowners’ net equity grew by nearly $1 trillion from the recession’s low point in the first quarter of 2009 through the third quarter. From June 30 through Sept. 30, equity rose by $418 billion. After three years of negative growth in home equity there are finally signs the down cycle may be shifting.

Last week, online real estate valuation researcher Zillow.com released its latest quarterly numbers on negative equity in major markets. Like the Fed’s numbers, it showed that there was a decrease from the first two quarters of last year. Zillow’s study found that in dozens of housing markets the percentage of homeowners with negative equity appears to be on the decline.

The National Association of Realtors® reported a 27.2 gain for the fourth quarter of 2009. Sales increased from the third quarter in 48 states and the District of Columbia; 32 states saw double-digit gains.

Speaking of the federal tax credit for home buyers, Lawrence Yun , NAR chief economist, said “The surge in home sales was driven by buyers responding strongly to the tax credit combined with record low mortgage interest rates.” As for the market’s future, Yun continued, “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring with more areas showing higher prices. Because buyers are taking on long-term fixed rate mortgages, avoiding adjustable-rate products, and trying to stay well within their budgets, the price recovery process appears durable.”

Repeat buyers do not have to sell their existing home, but all buyers must occupy the property they purchase as a primary residence to qualify for the tax credit. Buyers who have a contract in place by April 30, 2010, have until June 30, 2010, to finalize the transaction to get a credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.

For more information about buyer rebates, visit www.Bloomkey.com.

Flat fee mls listing still remains the most popular alternative to commission based real estate brokerage services. Most home sellers who have utilized a flat-fee mls service are astounded that the service is available at such a relatively low cost, especially compared with the cost of using a traditional broker. Instead of paying a commission of 5-6%, flat-fee MLS listing services can usually be found in the $300-$500 range. That’s a significant savings for most home sellers.

Many sellers opt to use a flat-fee mls listing service on a trial basis to see if they can sell their own homes without paying a listing commission. They reason that at the $300-500 price point, why not give it a try for a few weeks, as opposed to using other more conventional methods of real estate advertising such as classifieds and online “for sale by owner” websites. Unfortunately most FSBO sellers, unfamiliar with the home selling process, tend to panic after a few weeks of being on the market. They worry what the neighbors might think about their house not selling, or that their somehow just not “doing it right” and end up handing over the listing to a full-service, full-commission real estate broker (who most often beats them up about lowering the price until the house finally sells).

However the sellers who are most often successful using flat-fee mls listing services are the ones who stick it out for up to 6 months or more. Considering that even traditional real estate agents often take many months to sell a property, these savvy sellers know that it pays to have the confidence to hang in there and wait for the right buyer to come along. Of course, pricing the home correctly is an important consideration in either case. But with the low cost of flat fee mls you have the luxury of being able to be more competitive with your pricing since you’re not having to give up so much of your equity to real estate commissions.

Especially in today’s real estate market, flat-fee mls can be the tool that helps you sell your home or property – if you have the patience and confidence it takes.

The Standard & Poor’s/Case-Shiller home price index released Tuesday showed housing prices up 0.4 percent to a seasonally adjusted reading of 145.36 in October from September. That’s the 5th month in a row that the index has increased showing that recovery efforts have been at least somewhat successful in the residential real estate market.

Although a large supply of house still remain on the market, the upward trend in home prices and a improving employment outlook helped raise the Consumer Confidence Index as well. Home price gains since the summer reflect the rush of homebuyers trying to close their deals before the original expiration date of a federal tax credit. The Nov. 30 deadline was extended last month to April 30.

NAR chief economist, Lawrence Yun, is counting on the tax credit to provide temporary support for housing markets until the economy recovers enough to start fueling sales. He predicts price improvement in 2010 of more than 3%. “The headwind we face is rising mortgage interest rates,” Yun said, “but the compensating factors will be the homebuyers tax credit in the first half of the year and increased job creation in the second half.”

Time may be slipping away for consumers to take advantage of one of the best opportunites for home buyers in U.S. history. The continuing buyer’s market has been fueled by a much larger than normal supply of housing; the federal tax credit gives home buyer’s unprecedented tax savings; and interest rates have remained extremely attractive – thanks in part to a Federal Reserve program to buy mortgage back securities. However signs are that the party may be coming to an end. Just this past week mortgage interest rates have climbed above 5% for the first time in 2 months. The home buyer tax credit expires in April and is not expected to be extended. And, according to Amy Crews Cutts, deputy chief economist at Freddie Mac, interest rates are likely to rise to 6 percent by the end of 2010. “Extraordinary resources have been put into keeping the rates down and supporting the mortgage markets and it’s hard to imagine that the rates can go much lower than they are,” Crews Cutts said. “Anything we get at or below 5 percent is a gift at this point.”

Existing home sales rose 7.4% in November and prices have steadied according to a new report from the U.S. Commerce Department. However, buyers and sellers need to take advantage now as the tax credit and low interest rates are not expected to last past the 2nd quarter of 2010. Lawrence Yun, chief economist for the National Association of Realtors®, said the rise was expected. “This clearly is a rush of first-time buyers not wanting to miss out on the tax credit, but there are many more potential buyers who can enter the market in the months ahead,” he said. “We expect a temporary sales drop while buying activity ramps up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010.

NAR President Vicki Cox Golder said conditions are optimal for buyers in the current market. “Inventories have steadily declined and are closer to balanced levels, which indicate home prices in many areas are either stabilizing or could soon stabilize and return to normal appreciation patterns,” she said. “This means buyers still have good choices but are purchasing near the bottom of the price cycle with historically low mortgage interest rates. Throw a tax credit on top and it really doesn’t get any better for buyers with secure jobs and long-term ownership plans.”

Seems like there’s always someone out there willing to take advantage of people who are already having a tough time. The U.S. Department of the Treasury has issued a consumer advisory detailing common mortgage modification scams. These are a few of the fraudulent tactics that con artists may use to put distressed homeowners into an even worse situation…

Ten Warning Signs of a Mortgage Modification Scam

1. “Pay us $1,000, and we’ll save your home.” Some legitimate housing counselors may charge small fees, but fees that amount to thousands of dollars are likely a sign of potential fraud — especially if they are charged up-front, before the “counselor” has done any work for you. Be wary of companies that require you to provide a cashier’s check or wire transfer before they take any action on your behalf.
2. “I guarantee I will save your home – trust me.” Beware of guarantees that a person or company can stop foreclosure and allow you to remain in your house. Unrealistic promises are a sign that the person making them will not consider your particular circumstances and is unlikely to provide services that will actually help you.
3. “Sign over your home, and we’ll let you stay in it.” Be very suspicious if someone offers to pay your mortgage and rent your home back to you in exchange for transferring title to your home. Signing over the deed to another person gives that person the power to evict you, raise your rent, or sell the house. Although you will no longer own your home, you still will be legally responsible for paying the mortgage on it.
4. “Stop paying your mortgage.” Do not trust anyone who tells you to stop making payments to your lender and servicer, even if that person says it will be done for you.
5. “If your lender calls, don’t talk to them.” Your lender should be your first point of contact for negotiating a repayment plan, modification, or short sale. It is vital to your interests to stay in close communication with your lender and servicer, so they understand your circumstances.
6. “Your lender never had the legal authority to make a loan.” Do not listen to anyone who claims that “secret laws” or “secret information” will be used to eliminate your debt and have your mortgage contract declared invalid. These scammers use sham legal arguments to claim that you are not obligated to pay your mortgage. These arguments don’t work.
7. “Just sign this now; we’ll fill in the blanks later.” Take the time to read and understand anything you sign. Never let anyone else fill out paperwork for you. Don’t let anyone pressure you into signing anything that you don’t agree with or understand.
8. “Call 1-800-Fed-Loan.” This may be a scam. Some companies trick borrowers into believing that they are affiliated with or are approved by the government or tell you that you must pay them high fees to qualify for government loan modification programs. Keep in mind that you do not have to pay to participate in legitimate government programs. All you need to do is contact your lender to find out if you qualify.
9. “File for bankruptcy and keep your home.” Filing bankruptcy only temporarily stops foreclosure. If your mortgage payments are not made, the bankruptcy court will eventually allow your lender to foreclose on your home. Be aware that some scammers will file bankruptcy in your name, without your knowledge, to temporarily stop foreclosure and make it seem as though they have negotiated a new payment agreement with your lender.
10. “Why haven’t you replied to our offer? Do you want to live on the streets?” High-pressure tactics signal trouble. If someone continually contacts you and pressures you to work with them to stop foreclosure, do not work with that person. Legitimate housing counselors do not conduct business that way.

The Consumer Advisory can be found online at http://www.occ.treas.gov/ftp/ADVISORY/2009-1.html

Everyone knows Spring is real estate season. That’s the time of the year when more houses go on the market and people are out shopping for a new home. However, what you don’t always hear is that plenty of houses are selling during the Holidays. In fact, according to National Association of Realtor statistics fully 12% of existing home sales take place during December and January (compared with 19% in April and May). Here are some of the top reasons to sell during the holidays:

1. Home Buyer Tax Credit Extended. This year presents a unique reason to sell during the holidays. The extension of the HomeBuyer Tax Credit means that more people will be looking to take advantage of a once in a lifetime chance to save big on their home purchase. This represents a huge savings for home buyers and there’s not much time to take advantage of it as it ends in April 2010.
2. Less Competition. Selling during the Spring means that your property will be competing with far more others for the pool of existing buyers. Selling in December and January means less competition which means you’ll likely sell faster and for a higher price.
3. Homes Feel Homier. What’s more inviting than a home at Christmas time? Holiday wreaths, holiday lighting, the smell of the Christmas tree and mistletoe, the warmth of hearthfires burning, etc. make for that feeling of home we all long for and enjoy. Who wouldn’t want to buy a Norman Rockwell lifespace?
4. You’ve Already Cleaned Up. Chances are with the Holidays you’ve already cleaned up your home in anticipation of coming the procession of holiday guests. What better time to show your home to prospective buyers than when you can “kill two birds with one stone”?
5. Serious Buyers. It’s a fact. People are buying homes all year long – even on Christmas eve. If someone’s out looking for homes during the holidays they are intent on buying a home – and soon. Instead of people drapsing through your home at all hours you’ll likely only get people who are ready to buy right now. Fewer showings – higher likelihood of selling.
6. Hungrier Agents. Not only are buyers more serious this time of year, agents are more intent on making a sale. With fewer sales during the winter months agents are having to work harder than usual to make a living. This is a powerful combination – motivated buyers and agents both working to get your home sold.

If you do decide to join the hundreds of thousands of sellers who sell each year during the Holidays, make sure you’ve got the house in tip-top shape. As always showing well and pricing right are the two main determinates as to whether or not your home sells.

According to a new report published by home valuation website Zillow.com housing prices are finally stabilizing. Cheif economist for Zillow, Stan Humphries said that properties in 48 of the 154 markets tracked by Zillow rose in value this year. “We believe that demand will come under downward pressure as mortgage rates creep back up after the first quarter and that housing supply will experience upward pressure as the volume of foreclosures continues to remain high. Both these factors will challenge the recent stabilization of home prices,” Humphries said in a statement.

Areas where home prices rose the most in 2009 were:
Boston
Providence
Denver, Colo.
Atlanta, Ga.
Rochester, N.Y.

Areas where homes continued to lose the most value:
Los Angeles
Chicago
New York
Miami-Fort Lauderdale
Phoenix

The Wall Street Journal reported that the housing inventory picture is continuing to improve. Citing a study by compiled by ZipRealty, WSJ said “the supply of homes available for sale in 27 major metropolitan areas at the end of November was down 2.4% compared with a month earlier”. The November inventory in the 27 metro areas was down 28% compared with the year-earlier period, according to ZipRealty. Markets with the most dramatic month-over-month inventory declines: Boston, down 8.5 percent; Minneapolis-St. Paul at 6 percent; Washington, D.C., down 5 percent, Denver at 4.4 percent and Chicago at 4 percent.

The National Association of Realtors® (NAR) annouced that October was the ninth consecutive month of increases in the number of pending home sales. The NAR index rose an unprecendeted 32%. Between September and October NAR’s Pending Home Sales Index rose 3.7% to 114.1 from 110 in October. But the index is 31.8% higher than a year ago, when it was 86.6. That’s the biggest year-over-year gain in the history of the index. There is now a seven month supply of homes on the market at the current rate of sale. which is down from 10.2 months a year ago. Lawrence Yun, Chief Economist for NAR, predicted that housing conditions could return to near normal and home prices firm up by mid-2010.

The Commerce Department said Wednesday that sales of new homes rose 6.2 percent last month to the highest level in more than a year. The resale market is also strong. The National Association of Realtors® said Monday home resales rose 10 percent from September to October, the biggest monthly increase in a decade. Along with the tax credit, buyers are being attracted by low prices and mortgage rates. And rates on 30-year fixed-rate home mortgages averaged 4.78% this week, matching an all-time low in Freddie Mac’s weekly survey of conforming mortgage rates, released Wednesday. “If you’re looking for a sign that builders will need to start swinging their hammers again soon, this is it,” wrote Mike Larson, real estate analyst at Weiss Research.

The National Association of Home Builders (NAHB) has posted a Frequently Asked Questions section for the Move-Up/Repeat Home Buyer Tax Credit that went into effect November 6, 2009. The FAQ answers questions regarding a $6,500 tax credit for existing home owners purchasing a principal or primary residence before April 30, 2010 and closing no later than June 30, 2010.

Among the requirements of the tax credit are that the home buyer must have owned and resided in the same home for 5 of the past 8 years prior to the purchase date. And they cannot make over $125,000 (or $225,000 for married taxpayers). The maximum sales price eligible for the credit is $800,000. However, unlike some other tax incentives, the new residence does not need to be more expensive than the prior home.

The great thing about this tax credit is that it is refundable. Even if you have little or no federal tax liability you can claim the credit and receive a check from the IRS.