Rismedia: Will the Stimulus Benefit Homeowners and Buyers?

”There are four primary sections of the economic stimulus plan that will benefit home owners and buyers,” said Gibran Nicholas, chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers. According to Nicholas, these include:

1. Expansion of Home Improvement Tax Credit.”The tax credit for making energy efficient home improvements is now 30% of the cost of the improvements up to a maximum of $1500,” Nicholas said. “This means that if the improvements cost you $4,500, you would receive a tax refund of $1,500 when you file your tax returns.”

Eligible improvements include energy efficient exterior doors and windows, insulation, heat pumps, furnaces, central air conditioners and water heaters.

“Generally, most modern improvements like windows, furnaces, and air conditioners meet the necessary standards for energy efficiency,” Nicholas said. “If you’ve been holding off on making some of these improvements, now is a great time to get a move on it - especially with all the great deals being offered.”

2. Expansion of First-time Home Buyer Tax Credit.

The tax credit available to first-time home buyers was increased from $7,500 to $8,000 for homes purchased between January 1, 2009, and December 1, 2009. Also, the credit no longer needs to be paid back as long as the buyers live in the home without selling it for at least 3 years.

“The previous version of the credit expired on July 1, 2009, and required home buyers to pay the funds back over a 15 year time frame,” Nicholas said.

The income limitations remain the same ($75,000 for single tax payers claiming the full credit and $150,000 for married tax payers), as do most other qualification requirements. Also, the credit remains refundable. “This means that first-time home buyers who owe less than $8,000 in taxes for the year are still eligible for the full $8,000 credit when they file their tax returns, and the IRS will write them a check for the difference between $8,000 and their actual tax bill,” Nicholas said. “In fact, the credit can be claimed on your 2008 tax returns that you file by April 15 of this year, even if you buy the home in 2009.”

There is one catch, however: if you bought the home in 2008, the credit remains $7,500, and it still needs to be paid back over a 15 year timeframe beginning in 2011 when you file your 2010 returns.

3. Higher Reverse Mortgage Loan Limits.

The loan limits for FHA-insured reverse mortgages have been increased to $625,500 across the entire country-not just the higher cost areas. The previous limit was $417,000 across the country.

“This is especially important because the FHA program is virtually the only game in town as private and jumbo reverse mortgage programs have nearly all evaporated,” Nicholas said.

This coincides with another little-known change in the reverse mortgage
arena: the availability of reverse mortgages on home purchase transactions.

“This is a fantastic opportunity for senior citizens to buy a new home and live mortgage payment-free without having to wait for their old home to sell,” Nicholas said. “Seniors could also use this strategy to buy a new home and turn the old home into a rental or otherwise wait for market conditions to improve before trying to sell the old home.”

4. $729,750 FHA and Conforming Loan Limits Restored in High Cost Areas.

“The $729,750 maximum loan limit had been in force throughout 2008, but was reduced to $625,500 in 2009,” Nicholas said. “The economic stimulus plan restores the $729,750 maximum. This makes higher cost homes more affordable - especially in the coastal housing markets that tend to have higher than average home values.”

For more information, visit http://gibrannicholas.com and www.CMPSInstitute.org or call 888.608.9800.

HGTV’s FrontDoor.com Real Estate Offers the Top 10 Unique Selling Tactics to Lure Potential Buyers

BUSINESS WIRE --Say goodbye to the days when baking a batch of cookies and putting out fresh flowers before an open house would be enough to sell your home. In today's market, it takes more than that to attract buyers, and frustrated home sellers are resorting to some unusual methods to get their homes noticed. From clever to downright bizarre, FrontDoor.com – HGTV’s new award-winning real estate site – shares its top ten favorite unusual home selling tactics. (http://www.frontdoor.com/top10)

1. Hold an open house party. Open houses are the norm when selling a home, but some sellers are upping the ante on the open house by offering wine, catered food, live music and prizes. A fancy shindig could start a buzz on your property and make your home memorable.

2. Take home staging to the extreme. It's well known that staging your home can help it sell faster, but some sellers are taking staging a step further with an ancient Chinese philosophy. Feng shui stagers rearrange the elements of a home to improve its chi, or energy. Good chi makes potential buyers feel more welcome.

3. Help serious buyers with financing. Many people who want to buy a home can't qualify for a standard mortgage right now, so sellers are offering a helping hand. Sellers have a few options when it comes to assisting buyers with financing, including offering lease-to-own deals, offering financing themselves, paying for closing costs or paying for points to lower the interest rate.

4. Have a little faith. Burying statues or medals of St. Joseph in the earth is a tradition that dates back hundreds of years. Most recently, home sellers have been burying the patron saint of family and household needs in their yards to help their homes sell faster. Thousands of sellers swear that a little divine intervention helped them get a sale.

5. Throw in some extravagant extras. In the past, a free big-screen TV was enough of an incentive to get your home noticed. Times have changed, and incentives are becoming more and more substantial. Sellers are throwing in all kinds of goodies, like free cars, vacations, pricey home upgrades and monetary incentives like a year's mortgage or a furniture stipend. One woman in Florida is even offering herself as an incentive – she hopes to marry the man who buys her home.

6. Make your home a grand prize. After conventional methods fall short, some sellers are holding raffles and essay contests and giving their homes to the winners. This method is sure to draw attention, but beware: home lotteries are illegal in many states, so find out your state's regulations.

7. Get Web savvy. If the traditional method of selling your home through a real estate agent doesn't appeal to you, you may find an alternative process on the Web. Some sellers are auctioning off their homes on eBay, while others are swapping properties through sites like Pad4Pad.com and DomuSwap.com.

8. Let your house do the talking. After taking the traditional route of putting a For Sale sign in your front yard and placing an ad in the newspaper, try some hi-tech advertising. Some sellers and agents are using the Talking House radio transmitter, which allows you to record a customized message about the features of your home. Buyers can tune into a radio station to hear this message as they drive by your house.

9. Put your house on the auction block. Auctions are no longer just for homes that have been foreclosed on. Sellers looking to sell their homes quickly are choosing the auction route. Keep in mind that the total costs of auctioning off a home are often the same or more than the costs of selling a home through an agent.

10. Let buyers sleep on it. For serious potential buyers who are on the fence about buying your home, let them sleep on it, literally. By letting buyers spend the night in your home, you're allowing them to get the full experience of living there. A trial run could be just what they need to sign on the dotted line. Be sure to consult with your real estate agent or attorney first.

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www.georgiafrontpage.com

Make the Most of Your Tax Rebate: Reinvest in Your Home

ARA – In an effort to jumpstart the struggling economy, the federal government has approved an economic stimulus package that will send rebate checks to qualifying taxpayers, some as early as May. Homeowners can use this refund to invest in home improvements that add value in a difficult housing market.

Qualifying individual taxpayers will get up to $600 in rebates, working couples $1,200 and those with children an additional $300 per child. Add that to the average refund some taxpayers can expect after filing their taxes ($2,548 in 2007, according to CNNMoney.com) and that’s approximately $3,800 in total refunds from the federal government this year.

Investing these dollars in home improvements, such as replacing old leaky windows with newer, energy efficient ones, can offer homeowners a significant return on investment. Some experts believe that replacement windows are one of the best home improvement investments you can make in your home.

“Remodeling Magazine’s” 2007 Cost vs Value Report estimates that a homeowner may recoup 81 percent of the cost of installing low maintenance replacement windows at resale. That means on an $8,000 window replacement project, homeowners may recoup $6,480 at the time of sale.

In addition, new energy efficient windows can lower heating and cooling bills, improve a home’s comfort and aesthetics, and add long-lasting value.

There are some important things to keep in mind when choosing new energy efficient windows. Craig Evanich, president of Renewal by Andersen, suggests homeowners look for the ENERGY STAR label to ensure that they are energy efficient. According to the U.S. Department of Energy, replacing inefficient single pane windows with ENERGY STAR qualified windows could save up to 15 percent on your energy bills.

Evanich adds that Renewal by Andersen energy efficient windows are designed to perform at even higher standards. They come standard with High-Performance Low-E4 glass which is over 14 percent more energy efficient than stringent ENERGY STAR requirements and is 56 percent more energy efficient in summer than ordinary dual pane glass.

With a substantial savings in energy costs along with a solid return on investment from home improvement projects, buying energy efficient windows is a wise use of your rebate dollars. And, if you ever decide to sell your home, energy efficient windows can give you the edge -- and often a higher resale value -- over other sellers in an increasingly competitive housing market.

For more information on choosing energy efficient windows, visit renewalbyandersen.com or call (800) 630-5838.

Courtesy of ARAcontent