Update from Katy Independent School Distrist (KISD) Trying to Clear Up Misconceptions about the Attendance Boundary Modifications (ABM)

From the District:

“We have received feedback that many of you are not able to make out your subdivision on the map that was provided in the e-mail that was sent out earlier today. We do not have a map with street names at this time; however, below is a listing of neighborhoods that are under consideration for Attendance Boundary Modification.

If your neighborhood is NOT listed below, then you are NOT under consideration for Attendance Boundary Modification.

LUZ 66 Highland Trails
LUZ 66 Kelliwood Enclave
LUZ 66 Kelliwood Gardens
LUZ 66 Kelliwood Lakes
LUZ 66 Kelliwood Place
LUZ 66 Kelliwood Trails
LUZ 66 Lake Forest
LUZ 66 Lakes of Buckingham
LUZ 71A Alexan Downs Apart.
LUZ 71A Kelliwood Pointe
LUZ 71A Kelliwood Terrace
LUZ 71A Willow Park Greens
LUZ 71B Meadow Ridge
LUZ 71C Park Hollow
LUZ 71C Park View
LUZ 76C Bayou Crossing
LUZ 77A Fairways at Kelliwood
LUZ 77A Greens at Willowfork
LUZ 77A Kelliwood Greens
LUZ 77B Arbor at Willow Fork
LUZ 79B Canterbury Village
LUZ 79B Meadow Glen
LUZ 79B Residences at Cinco Ranch
LUZ 79B South Park
LUZ 79B Summer Point
LUZ 79C Canyon Gate
LUZ 79D Estates at Willowfork Greens
LUZ 79D Kelliwood Greens
LUZ 79D Kelliwood Park
LUZ 79F Saddlebrook Crossing
LUZ 79G Park Trace

——————————————————————————–

Attendance Boundary Modification

It has come to our attention that there are several rumors running rampant through the community regarding the ABM. These rumors are inaccurate and we regret the unnecessary stress these rumors are causing some of our district families. Modifying attendance boundaries is a sensitive issue and accurate information is essential. We would like to take this time to address some of these rumors:

Rumor 1) An e-mail is currently circulating in the community stating that all of the neighborhoods under consideration for ABM will be attending Taylor High School next year.

FACT: The map below indicates in yellow which neighborhoods are under consideration for ABM at this time. While the ABM recommendation to be discussed has some neighborhoods currently attending Cinco Ranch High moving to Taylor High School next year, the district has not considered moving any neighborhoods from Seven Lakes to Taylor. The district is, however, considering moving some neighborhoods from Seven Lakes to Cinco Ranch.

Rumor 2) It has also been circulating in the community that high school students who may be moved from their current high school to another and participate in athletics may need to sit out one year for eligibility per UIL rules.

FACT: UIL eligibility will not be an issue. In fact, the district has been studying scenarios resulting in the least disruption to students. It is anticipated that current high school students will remain unaffected by the ABM. In other words, students currently in the 9th – 11th grades will stay at their current high school until graduation. In addition, families with younger siblings will have the opportunity to attend the same high school as the older sibling, as long as they both attend at the same time.

Living in a fast growth district comes with many opportunities, and some challenges as well. We understand that with an issue as emotionally charged as ABM, there are those who will take advantage of the situation and use it as an opportunity to spread misinformation. Unfortunately, this does nothing but cause anxiety in the community. Thank you for looking to us for accurate information and please continue to send e-mails to communications@katyisd.org so that we can have the opportunity to address these rumors and help separate fact from fiction.”

Katy makes the Gadberry Group’s top 5 position!

 

Group, renowned supplier of Household Level Geo-Demographics names their nine most notable high-growth areas in the nation from 2009 and guess what, our wonderful Katy is number 5. Click here to view the entire report.

Katy, Texas

Katy was one of the Top 25 candidates in 2008 and occupies the number five position in this year’s list. The area is second for absolute household change, adding 15,699 households since 2000, and was third for percent household change, increasing from 6,585 households in 2000 to 22,284 households in 2008, or 238%.

Katy tied with Mansfield for highest percentage of children compared to total population at 42%. It is also the most ethnically diverse of this year’s places, with no ethnic group having less than 6% of total households and all major ethnic groups growing more than 150% since 2000.

Those of us who live, work and play in Katy, TX are not surprised. Our growth has remained strong and constant. We are consistently recognized as one of the hottest real estate markets in the Greater Houston Area (which is also one of the hottest in the US).

Why Katy, you ask? What has led to this amazing growth? We have wonderful master-planned communities, terrific access to thoroughfares for your commute to work, close proximity to the huge energy corridor (a major employer in our area), one of the strongest school systems in the State, constantly growing retail, entertainment, dining, shopping opportunities and now, we are currently developing into a major medical area know as the Med-Center West.

So many reasons to love living here… and it is great to be given this national recognition. If you would like to know more about our area, please visit my web site www.ChristiBorden.com  or give me a call 832-368-5953.

Is Now the Time to Invest in Real Estate?

I always liked being the center of attention, even as a kid in my grandfather’s restaurant where I frequently accompanied the piano player – probably to the chagrin of those trying to enjoy their food.

I still get the same attention now – without the singing, mind you –  because my business is the business of real estate. When anyone finds out I am a Realtor, the subject of conversation invariably hits on “How is our market?”. I love this, of course, because it is one of my favorite subjects.

In reading today’s Tycoon Report, I came across a blog addressing real estate in Florida and how the economic indicators point to NOW as a terrific time to get off the sidelines and hit the field.

One thing you will note in this article is that the author addresses investment to “hold and lease” – much different from Speculation – which is the type of investing that got us into so much trouble. If you purchase property or any investment for that matter in anticipation of earning money from the short term sale of that property – you are a speculator. While in some areas of the country that gambit has paid off, most have seen  their dreams of instant wealth vanish before their eyes. I am still amazed at people that lost money through investments during the dot.com debacle with the attitude of “easy come/easy go” but when the same thing happened in real estate, they were shocked and felt that they “were done wrong” by some entity and should be “bailed out”. Why did they expect protections for speculating in real estate that they did not expect for stocks? Gambling is gambling, no matter what you wish to call it. While I love a go at the Craps tables occasionally, I promise you that the Pit Boss is not going to give my money back just because I do not know what I am doing!

Let’s take a look at real estate as a true investment without the specter of Speculation hanging over our heads. Purchasing a property to hold and lease no longer takes into account the sole expectation that the property will appreciate (there are no guarantees in this world) but sets the expectation for a reasonable rental income (backed up by factual past rental data for that particular type of property and area) and then perhaps the hope of some accrual of appreciation at the end of the life of that investment (icing on the cake but not the batter itself).

Self-Directed IRA’s could be a good way to fund your investment but you need to know that this is heavily regulated and you would not want to make an improper move that would endanger your IRA protections. I would talk to a Self-Directed IRA specialist before moving in this direction. Also note the words “Self-Directed”, meaning you need to know what you are doing. Hire a professional Realtor to assist with finding the best properties to meet your investment goals. Word of caution: Do not be tempted to jump on the latest Foreclosure just because it looks like a “deal”. There are many factors that go into finding a viable leasehold investment and “deal” is not at the top of that list.

All in all, now is a terrific time to investigate real estate as a long-term investment to add to your diverse financial portfolio. Good Luck!

Frozen Pipes – information from Texas Dept. of Insurance

Frozen Pipes

 

(January 2010)

 This information is taken directly from http://www.tdi.state.tx.us/pubs/consumer/cb011.html

Icy winter weather can cause water pipes to freeze and burst if you haven’t prepared them for the frigid temperatures. Outdoor pipes, pipes in unheated areas, and pipes that run along uninsulated exterior walls are susceptible to expanding and bursting if they freeze. The result can be thousands of dollars worth of water damage to your walls, ceilings, carpets, and furniture.

Prepare for the Freeze

You can protect your home by taking the following precautions to prepare your pipes for a freeze:

• Protect faucets, outdoor pipes, and pipes in unheated areas by wrapping them with rags, newspapers, trash bags, or plastic foam.
• Insulate your outdoor water meter box and be sure the lid is on tight.
• Cover any vents around your home’s foundation.
• Drain water hoses and store them in a garage or shed.
• Protect outdoor electrical pumps.
• Drain swimming pool circulation systems or keep the pump motor running. (Run the pump motor only in a short freeze. Running the motor for long periods could damage it.)
• Drain water sprinkler supply lines.
• Open the cabinets under the sinks in your kitchen and bathrooms to allow heated air to circulate around the water pipes.
• Set your thermostat at a minimum of 55 degrees, especially when you’re gone for the day or away for an extended period.
• Let indoor faucets drip, but don’t run a heavy stream of water.
• Make sure you know where your home’s shut-off valve is and how to turn it on and off.
• If you leave town, consider turning off your water at the shut-off valve. Leave your faucets on when you turn the water off to drain the pipes.  Make sure you turn the faucets off before you turn the shut-off valve back on.
• If you drain your pipes, contact your electric or gas utility company for instructions on protecting your water heater.

If Your Pipes Freeze

If a pipe bursts and floods your home, turn the water off at the shut-off valve.  Call a plumber for help if you can’t find the broken pipe or if it’s inaccessible.  Don’t turn the water back on until the pipe has been repaired.

If the pipe hasn’t burst, thaw it out with an electric heating pad, hair dryer, portable space heater, or towel soaked with hot water. Don’t use a blowtorch or other open-flame device. They are fire risks and could produce dangerous carbon monoxide.

Apply heat by slowly moving the heat source toward the coldest spot on the pipe. Never concentrate heat in one spot because cracking ice can shatter a pipe. Turn the faucet on and let it run until the pipe is thawed and water pressure returns to normal.

If You Have Damage

Contact your insurance agent or company promptly. Follow up as soon as possible with a written claim to protect your rights under Texas’ prompt-payment law.

Review your coverage. Most homeowners and renters policies pay to repair houses and replace personal property damaged by the bursting pipes. Most policies also pay for debris removal and for additional living expenses if you have to move temporarily because of damage to your home. If you can’t find your policy, ask your agent or company for a copy.

Homeowners policies may require you to make temporary repairs to protect your property from further damage. Your policy covers the cost of these repairs. Keep all receipts and damaged property for the adjuster to inspect. If possible, take photos or videos of the damage before making repairs. Don’t make permanent repairs. An insurance company may deny a claim if you make permanent repairs before an adjuster inspects the damage.

Most homeowners policies do not cover loss caused by freezing pipes while your house is unoccupied unless you used reasonable care to maintain heat in the building; shut off the water supply; and drain water from plumbing, heating, and air conditioning systems.

For More Information or Assistance

For answers to general insurance questions or for information on filing an insurance-related complaint, call the Consumer Help Line between 8 a.m. and 5 p.m., Central time, Monday-Friday, or visit our website

1-800-252-3439
463-6515 in Austin
www.tdi.state.tx.us

For printed copies of consumer publications, call the 24-hour Publications Order Line

1-800-599-SHOP (7467)
305-7211 in Austin

Help us prevent insurance fraud. To report suspected fraud, call our toll-free Fraud Hot Line

1-888-327-8818

To report suspected arson or suspicious activity involving fires, call the State Fire Marshal’s 24-hour Arson Hot Line

1-877-4FIRE45 (434-7345)

The information in this publication is current as of the revision date. Changes in laws and agency administrative rules made after the revision date may affect the content. View current information on our website. TDI distributes this publication for educational purposes only. This publication is not an endorsement by TDI of any service, product, or company.

For more information contact: ConsumerProtection@tdi.state.tx.us

Update on Katy, Texas Mobility Issues and Improvements

This is a reply from Andy Meyers – County Commissioner Pct. 3 – when an inquiry was sent in about the traffic build up on Fry Road at 99 in front of the HEB. This was his reply to that inquiry. I have quoted this reply so that this important information could be shared with my readers. Post any questions about this directly with the County Commisioner’s office as they are the best source for this information. I am merely the messenger….

Interstate 10 is a federal highway and SH 99 (Grand Parkway) is a
state road, both are controlled by the Texas Department of
Transportation (TxDOT) not Fort Bend County.

“The traffic signal at SH 99 and Fry Road is controlled by TxDOT, the
traffic signal in front of HEB on Fry Road was installed by HEB, and
the traffic signal at Fry Road and Seven Meadows Blvd. was installed
by the county.  We conducted a year-long traffic study on Fry Road to
find a solution to one of the worst traffic problems we have in the
county.  We closed one of the left-turns off of Fry Road into HEB and
HEB installed a traffic signal at the second left-turn in order to
keep it open.  The county is working with TxDOT to synchronize the
three traffic signals.  TxDOT needs equipment to accomplish this.
TxDOT, at our request, recently made the center east-bound lane of Fry
Road an optional left turn going north onto SH 99 or straight ahead on
Fry.  Also, at our request, TxDOT made the center south-bound SH 99
feeder lane a right-turn lane onto Fry to alleviate the back up of
traffic on SH 99, which was causing a significant safety issue.  That
puts more traffic onto Fry at a quicker pace.  Most of the Fry Road
east-bound traffic coming out of HEB and Home Depot turns north on SH
99.  We are asking the HEB Shopping Center owner to re-configure the
center’s parking lot so traffic coming off Fry Road into HEB parking
lot does not stack up in the parking lot.  This will allow for more
vehicles in the parking lot lanes instead of the vehicles being backed
up on Fry Road.  The turn-lane and parking lot modifications and
coordinated traffic signal timing should move traffic quicker and more
smoothly.  TxDOT will not allow exits/entrances from/to either the HEB
or Home Depot Shopping Centers as their studies show this would create
safety problems.

The major problem with the severe traffic congestion at Fry & SH 99 is
the HEB store is very popular, one of HEB’s highest grossing stores,
and this creates additional traffic volume.  We initially closed both
left-turns off Fry into the HEB center, but that created bigger
problems at Seven Meadows Blvd. with many drivers making a U-Turn at
the signal to get back to HEB.

TxDOT received funding for two (2) direct connectors (ramps), one
going from SH 99 east onto I 10 and the other going from I 10 south
onto SH 99.  Construction is scheduled to begin mid 2010 and will take
18 months.  Traffic signals at that intersection will be re-timed to
accommodate the direct connectors.

The Fort Bend County/Harris County line is essentially at Kingsland
Blvd. and SH 99.

Fort Bend County has begun construction on Katy Gaston from FM 1093 to
Cinco Ranch Blvd. with a traffic signal at Fry and Katy Gaston.  It
will take about 1 year to complete.

The county has also begun construction of the intersection of
Greenbusch and Katy Flewellen, which will have a traffic signal and
which should be completed within the next 90 days.

The county will begin widening Katy Flewellen to 4 lanes from
Greenbusch/Pin Oak to Katy Gaston in February or March 2010.
Construction will take 12 to 18 months to complete.  The Katy
Flewellen/Katy Gaston intersection is now an “All Way” Stop.

The county should begin widening of Greenbusch (Westheimer Parkway) to
4-lanes from Katy Flewellen to Falcon Ranch Blvd. sometime this
summer.  Work will take 12 – 18 months.  We have to wait until the
pipeline company moves its existing pipeline.

We are identifying intersections in the Katy area for traffic signals.
 One under consideration is Fry Road and Spring Green Road.
Installation of traffic control devices (signals, stop signs, yield
signs, speed limits) are dictated by state law.  We are required to
have an independent Traffic Study conducted and that Study has to
conclude that certain conditions are met before the county can install
a traffic control device.

New Buyer Tax Credit Eligibility Rules Explained

WASHINGTON, D.C. (Realtor.org) – IRS eligibility guidelines for the homebuyer tax credit when co-borrowers purchase a property have been spelled out.

When a homeowning parent of an adult child co-signs for a mortgage and both names appear on the note, the first-time homebuyer can qualify for the whole amount under some circumstances.

The IRS says the parent doesn’t qualify for any portion of the credit, but if the child hasn’t owned a home during the three years preceding the current purchase and can qualify based on income, he or she can be allocated the entire $8,000 credit.

When unmarried individuals co-purchase a home and only one of them is eligible for the credit, then the full $8,000 can be allocated to the eligible buyer.

Latest HAR MLS Stats – Prudential Gary Greene # 1

Houston Association of Realtors® MLS Ranking Report      Top Ten Companies | November YTD 2009
Category: Single Family, Townhouse/Condo, Lots, Multi-Family, Country Homes/Acreage, Mid/Hi-Rise Condo
Status: A
Current Active Listings – Data Run December 7, 2009
Area: All Areas
Rank	Broker Code			Company Name			# of Listings			Volume			Average		% Total
1	GGPR			Prudential Gary Greene Realtors®			2205			$674,252,111.00			$305,783.00		4.81
2	COLD			Coldwell Banker United, Realtors			1636			$487,542,780.00			$298,009.00		3.57
3	PBME			Realty Associates			1366			$255,710,769.00			$187,196.00		2.98
4	RELM			Realm Real Estate Professional			695			$133,792,175.00			$192,506.00		1.52
5	TRNR			Martha Turner Properties			686			$636,775,088.00			$928,243.00		1.5
6	KWLC			Keller Williams Realty Conroe			672			$129,148,630.00			$192,185.00		1.47
7	KWHM			Keller Williams Realty			529			$221,636,038.00			$418,971.00		1.15
8	KWWD			Keller Williams Realty			526			$162,520,126.00			$308,973.00		1.15
9	HTEX			Heritage Texas Properties			513			$219,293,358.00			$427,472.00		1.12
10	CREG			Champions Real Estate Group			469			$85,404,373.00			$182,098.00		1.02
Houston Association of Realtors® MLS Ranking Report         Top Ten Companies | November YTD 2009
Category: Single Family, Townhouse/Condo, Lots, Multi-Family, Country Homes/Acreage, Mid/Hi-Rise Condo
Status: Listings Sold YTD through December 7, 2009
Current Listings Sold by Company
Area: All Areas
Rank			Broker Code			Company Name			Sold Listings			Volume		Average		% Total
1			GGPR			Prudential Gary Greene,Realtors			2984			$651,369,084.00		$218,287.00		5.08
2			COLD			Coldwell Banker United, Realtors			2630			$596,564,713.00		$226,830.00		4.48
3			PBME			Realty Associates			1527			$220,260,447.00		$144,243.00		2.6
4			RMXF			RE/MAX Fry Road			1043			$193,878,431.00		$185,885.00		1.78
5			HTEX			Heritage Texas Properties			967			$279,062,143.00		$288,585.00		1.65
6			TRNR			Martha Turner Properties			898			$485,125,641.00		$540,228.00		1.53
7			PDMI			Perry Development Management			833			$228,335,666.00		$274,112.00		1.42
8			RELM			Realm Real Estate Professional			828			$147,773,927.00		$178,470.00		1.41
9			RMCR			RE/MAX Cinco Ranch			770			$130,742,337.00		$169,795.00		1.31
10			RMNW			RE/MAX Northwest, REALTORS			740			$124,413,849.00		$168,126.00		1.26
Houston Association of Realtors® MLS Ranking                       Top Ten Companies | November YTD 2009
Category: Single Family, Townhouse/Condo, Lots, Multi-Family, Country Homes/Acreage, Mid/Hi-Rise Condo
Status: Total Units and Dollar Volume Sold YTD through December 7, 2009
Sold  – Data Run December 7, 2009
Area: All Areas
Rank		Broker Code			Company Name			Sold Units			Volume			Average			% Total
1		GGPR			Prudential Gary Greene, Realtors®			5903			$1,316,306,291.00			$223,041.00			5.73
2		COLD			Coldwell Banker United, Realtors®			5429			$1,247,034,701.00			$229,611.00			5.43
3		TRNR			Martha Turner Properties			1636			$849,959,638.00			$517,291.00			3.7
4		GKPI			Greenwood King Properties			1123			$669,537,742.00			$595,455.00			2.92
5		PBME			Realty Associates			4062			$607,221,863.00			$148,445.00			2.64
6		HTEX			Heritage Texas Properties			1898			$554,529,209.00			$292,233.00			2.42
7		DGTY			John Daugherty, Realtors®			873			$472,375,588.00			$534,428.00			2.06
8		KWHM			Keller Williams Realty			1373			$368,044,818.00			$269,143.00			1.6
9		RELM			Realm Real Estate Professional			2063			$347,435,763.00			$170,069.00			1.51
10		KWWD			Keller Williams Realty			1367			$328,621,368.00			$240,669.00			1.43

Houston Real Estate Market on the Upswing?

The table below shows the difference between the market experienced in February, June and October YTD 2009.   As you can see, as 2009 progresses, the single-family housing market is slowly marching toward a healthier market.

 

Houston Market Improvement Comparison 2009 of Single-Family Homes
Market Indicator	February ‘09	June ‘09	Oct. ‘09	% Change from June ‘09
# units sold	-24%	-20%	-11%	+81%
Dollar volume sold	-33%	-24%	-14%	+71%
Average Sales Price	-12%	-6%	-4%	+50%
Median Sales Price	-8%	-2%	-1%	+50%
# of Pending Sales	-23%	-21%	-14%	+50%
Active Listings	-20%	-22%	-21%	-.46%

A summary of October YTD market statistics compared to last year:

 

• Sales are down from October YTD 2008 by 11% with 45,391 single-family homes.
• Dollar volume sold is down from October YTD 2008 by 14% with $9,202,482,156.
• Average sales price is currently $202,738, down by 4%.
• Median sales price is $153,000, down by 1% [half of the homes sold above and half below this midpoint range.
• # of contracts written [pending] are 31,101 and that represents 14% fewer than found last year.
• Active listings, a metric that is good if on a decline, are currently 27,758 or 21% less than last year.  This is also a metric that in Houston is the exact opposite heard frequently in the national news.

For more detailed information, go to Prudential Gary Greene Blog

Seller’s Disclosure: What does a seller have to disclose to a buyer?

in a word: EVERYTHING… 

In the bad old days, the seller did not have this requirement placed on him and it was a case of Caveat emptor – “Let the buyer beware!”. Times have changed and the onus is now entirely on the seller to make known any and all material facts regarding the condition of the property he or she is selling.

In real estate transactions, the root cause for most problems is lack of disclosure by the seller. Funny thing is… most of the time it is entirely unintentional. Why would anyone in their right mind try to hide an issue that will come out anyway through inspections, diligent research or nosy neighbors happy to share any and all facts known or rumored about your home. Yes, your nosy Nellie next door did happen to see the foundation repairman and the roofer two years and will certainly make sure your buyer knows all about it – in great detail.

One interesting disclosure item that always causes issues is disclosing a prior death on the property. Now, deaths by natural causes, suicide, etc. are not required to be disclosed but those caused by a defect of the property or criminal activity – yes, DISCLOSE, DISCLOSE, DISCLOSE! Should you let the buyer know about a death that is not necessarily required? That is a judgement call you will have to make. Example: my brother-in-law bought a home in Austin a few years ago. When we visited, being the chatty gal that I am, I stopped by the neighbor’s house to introduce myself and learn more about the area. I found out in less than one minute that the prior owner had committed suicide in the backyard. Now, that is not a required disclosure item but… should it have been shared? Probably. Would it have caused a termination in the contract… Probably not. My feeling about the matter is: Would you want to learn about something of this nature from the seller or later from the neighbors? 

When I work with sellers, I deliver to them the Seller’s Disclosure form, a 5 page document that is required by the State of Texas to be filled out to the best of the seller’s ability and given to the buyer of any property within a mandated time frame according to the actual contract. There are individuals who are exempt from the use this form: Banks or other entities who own foreclosure properties, Probate administrators, etc. but the normal seller in the State of Texas must render this form… and that is where he/she gets in trouble.

I am often asked by my sellers…”Should I disclose this or that…?” As your Realtor, I am not allowed to assist in the completion of this form but my answer to that is always the same… a resounding YES! If the question was brought up in the seller’s mind, then YES, disclose whatever it is. The litmus test is you should disclose any and all items that if not disclosed, could cause the buyer to reconsider his offer. Meaning, if the non-disclosure of an item would cause your buyer to either make a different offer or pass on the property, then yes, DISCLOSE, DISCLOSE, DISCLOSE. Even if it was a roof repair 20 years ago…Again, I repeat… IF IN DOUBT, DISCLOSE. 

You can always explain your answer. I have had clients add several pages of explanation to the disclosure form, which is entirely appropriate. The disclosed item may have no affect at all on a buyer’s interest in a property. In fact, most homes (like people) have a past and as long as the issues are not on-going or improperly addressed, your buyer will proceed as usual. But by making your disclosure, your buyer simply will not have a reason to come back to you later if any and all matters are disclosed up front.

Another important item to disclose is any inspection report on the home within the last 4 years: structural, mechanical, environmental, termite, etc. And if you had a major issue that needed remediation (mold, for example), that really should always be disclosed even if completely re-mediated. You can again attach your explanations of repairs made and receipts for those repairs.

Disclosure items are a mine field of trouble if handled incorrectly so the best road to take is always the high road. Remember, you will be a buyer someday, too and will want your future seller to treat you as you should treat today’s buyer for your home.

First Time Home Buyer Market Heating Up!

Houston and Katy market update:

Overall, the October home sale market continued to show softness as the market pivoted away from some of the higher end homes.  Rentals once again were red hot – up 36% from this time last year with increasing rental rates. Inventory continues to decline the fewest homes available on the market for the last 18 months. This is good news, considering the smaller buyer pool we are currently seeing in our area.

Sales to first-time homebuyers are at their highest in seven years. Over 40 percent of homes recently sold went to first-time buyers, according to a 10,000-person survey by the National Association of Realtors.

 

Other survey findings include:

• a record 32 percent of buyers found their houses first on the Internet;
• almost 90 percent looked for information online during their home search;
• almost 80 percent were concerned about commuting costs;
• 43 percent said heating and cooling costs were very important factors when they made their purchase; and
• more than 40 percent of sellers had to offer incentives to buyers, including assistance with closing costs and home warranty policies.

What does this mean for Katy, TX? It means that homes in the lower spectrum price ranges: $ 250,000 and under are experiencing the most brisk activity in our area. Our current months of inventory of the South Katy area is 4.6 months. This means if homes sold at last years’ pace, it would take this long to sell all available homes if no more homes were added to the market. Our current average days on the market is running 70 or more days – and this will differ when we break down the various price ranges. Homes on the high end are experiencing over 9 months inventory – and that is a lot of homes to compete with. Custom homes over $ 1 million have over 16 months of inventory and must be very competitive on price and ready to wait for a very special buyer.

Our market is so diverse and so fast paced, market information changes constantly. If you would like to receive my video newsletter from Realty Times, post your request here or email me at christi@christiborden.com.

 

 

Understanding the buyer tax credit!

This credit is very not necessarily a true credit so I went to the source, a lender who specializes in first time home buyers and she sent me the following information:

1.      Who is eligible to claim the $7,500 tax credit?
First time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after April 9, 2008 and before July 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs.

2.      What is the definition of a first-time home buyer?
The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests homeownership history of both the home buyer and his/her spouse. For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit.

3.      What types of homes will qualify for the tax credit?
Any home purchased by an eligible first-time home buyer will qualify for the credit, provided that the home will be used as a principal residence and the buyer has not owned a home in the previous three years. This includes single-family detached homes, attached homes like townhouses, and condominiums.

4.      Instead of buying a new home from a home builder, I have hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been “purchased” on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after April 9, 2008 and before July 1, 2009.

In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.

5.      What is “modified adjusted gross income”?
Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine “adjusted gross income” or AGI. AGI is total income for a year minus certain deductions (known as “adjustments” or “above-the-line deductions”), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.

To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.

6.      If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
Possibly. It depends on your income. Partial credits of less than $7,500 are available for some taxpayers whose MAGI exceeds the phase-out limits. The credit becomes totally unavailable for individual taxpayers with a modified adjusted gross income of more than $95,000 and for married taxpayers filing joint returns with an AGI of more than $170,000.

7.      Can you give me an example of how the partial tax credit is determined?
Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phase-out 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 home buyer tax credit that is available to this couple, multiply $7,500 by 0.5. The result is $3,750.

Here’s another example: assume that an individual home buyer 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 $7,500 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,625.

Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.

8.      Does the credit amount differ based on tax filing status?
No. The credit is in general equal to $7,500 for a qualified home purchase, whether the home buyer files taxes as a single or married taxpayer. However, if a household files their taxes as “married filing separately” (in effect, filing two returns), then the credit of $7,500 is claimed as a $3,750 credit on each of the two returns.

9.      Are there any circumstances for which buyers whose incomes are at or below the $75,000 limit for singles or the $150,000 limit for married taxpayers might not be able to claim the full $7,500 tax credit?
In general, the tax credit is equal to 10% of the qualified home purchase price, but the credit amount is capped or limited at $7,500. For most first-time home buyers, this means the credit will equal $7,500. For home buyers purchasing a home priced less than $75,000, the credit will equal 10% of the purchase price.

10.     I heard that the tax credit is refundable. What does that mean?
The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.

For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that taxpayer qualified for the $7,500 home buyer tax credit. As a result, the taxpayer would receive a check for $6,500 ($7,500 minus the $1,000 owed).

11.     What is the difference between a tax credit and a tax deduction?
A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $7,500 in income taxes and who receives a $7,500 tax credit would owe nothing to the IRS.

A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $7,500 in income taxes. If the taxpayer receives a $7,500 deduction, the taxpayer’s tax liability would be reduced by $1,125 (15 percent of $7,500), or lowered from $7,500 to $6,375.

12.     Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
No. The tax credit cannot be combined with the MRB home buyer program.

13.     I live in the District of Columbia. Can I claim both the DC first-time home buyer credit and this new credit?
No. You can claim only one.

14.     I am not a U.S. citizen. Can I claim the tax credit?
Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of “nonresident alien” in IRS Publication 519.

15.     Does the credit have to be paid back to the government? If so, what are the payback provisions?
Yes, the tax credit must be repaid. Home buyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.

16.     Why must the money be repaid?
Congress’s intent was to provide as large a financial resource as possible for home buyers in the year that they purchase a home. In addition to helping first-time home buyers, this will maximize the stimulus for the housing market and the economy, will help stabilize home prices, and will increase home sales. The repayment requirement reduces the effect on the Federal Treasury and assumes that home buyers will benefit from stabilized and, eventually, increasing future housing prices.

17.     Because the money must be repaid, isn’t the first-time home buyer program really a zero-interest loan rather than a traditional tax credit?
Yes. Because the tax credit must be repaid, it operates like a zero-interest loan. Assuming an interest rate of 7%, that means the home owner saves up to $4,200 in interest payments over the 15-year repayment period. Compared to $7,500 financed through a 30-year mortgage with a 7% interest rate, the home buyer tax credit saves home buyers over $8,100 in interest payments. The program is called a tax credit because it operates through the tax code and is administered by the IRS. Also like a tax credit, it provides a reduction in tax liability in the year it is claimed.

18.     If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
Yes. The law allows taxpayers to choose (“elect”) to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.

19.     For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?
Yes. If the applicable income phase-out would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount. Sent by Christine A. Boles, Mortgage Consultant, Gibraltar Mortgage Services, LLC

If you need further clarification, please post here and I will get answers for you.

Houston Real Estate Update – November 18

The Houston housing market continued to feel the effects of the troubled national economy in October and residual business interruptions caused by Hurricane Ike. New monthly data released by the Houston Association of REALTORS®  (HAR) reflects improvement from market performance in September, when Ike derailed thousands of real estate transactions. However, the number of property sales across the greater Houston area declined last month when compared to October 2007, with sales of single-family homes down 20.1 percent. The average price of a single-family home dipped 1.6 percent last month to $194,607 from $197,751 in October 2007. That still marks the second highest average price for an October in Houston. At $142,000, the median price of a single-family home in October fell 2.7 percent. Year-to-date home prices are still up compared to 2007 and national figures show Houston continues to fare better than many other U.S. markets, some of which have experienced deprecations of as much as 40 percent. Sales of all property types for October 2008 totaled 4,962, down 21.6 percent compared to October 2007. Total dollar volume for properties sold during the month was $943 million versus $1.2 billion one year earlier, a 22.9 percent decline. “Houston remains the envy of real estate professionals around the country, who discussed their sales and pricing concerns with us at this month’s National Association of REALTORS® conference in Orlando,” said Michael Levitin, HAR chairman and principal of HTownRealty.com. “Month’s inventory in Houston is about half the national average, and on a year-to-date basis, prices here are up about three percent from 2007. Nonetheless, we must watch closely to see what further action the federal government may take to stimulate the economy, particularly on behalf of homeowners.” October Monthly Market Comparison The month of October brought Houston’s overall housing market disappointing results when comparing all listing categories to October of 2007. Total property sales and total dollar volume fell, as did average and median single-family home sales prices. The number of available properties, or active listings, at the end of October fell 8.2 percent from October 2007 to 49,016. That’s 1,139 fewer active listings than September 2008, and is seen as an indication that inventory levels are balanced and that home prices should remain stable. Month-end pending sales – those listings expected to close within the next 30 days – totaled 3,579, which was 21.5 percent lower than last year and suggests another likely sales decline next month. The month’s inventory of single-family homes for October came in at 6.3 months, the lowest level since March of this year. That compares to the October 2007 single-family homes inventory of 6.2 months.

ALL CATEGORIES October 2007 October 2008 PERCENT CHANGE Total property sales 6,327 4,962 -21.6% Total dollar volume $1,233,550,946 $943,444,534 -22.9% Average single-family sales price $197,751 $194,607 -1.6% Median single-family sales price $146,000 $142,000 -2.7% Total active listings 53,407 49,016 -8.2% Total pending sales 4,562 3,579 -21.5% Months inventory* 6.2 6.3 +1.2%

* Months inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. This figure is representative of the single-family homes market.

Single-Family Homes Update At $194,607, the average sales price for single-family homes reached the second highest level recorded for an October in Houston, down 1.6 percent from October 2007 when it was $197,751. The overall median price of single-family homes in October was $142,000. That compares to the national single-family median price of $190,600 reported by the National Association of REALTORS®. These data continue to demonstrate the higher value and lower cost of living that prevail in the Houston market.

Additionally, total October sales of single-family homes in Houston came in at 4,202, down 20.1 percent from October 2007 and the fourteenth straight monthly drop.

HAR also reports existing home statistics for the single-family home segment of the real estate market. In October 2008, existing single-family home sales totaled 3,526, a 17.3 percent decrease from October 2007. At $175,392, the average sales price for existing homes in the Houston area fell 5.3 percent compared to last year. The median sales price of $130,000 for the month was also down 3.7 percent from one year earlier.

Townhouse/Condo Update

The number of townhouses and condominiums sold in October fell compared to one year earlier. In the greater Houston area, 421 units were sold last month versus 534 properties in October 2007, translating to a 21.2 percent decrease in year-over-year sales.

The average price of a townhouse/condominium increased to $161,428, up 0.7 percent from one year earlier and the highest figure for the month of October. The median price dipped 1.5 percent to $129,000 from October 2007 to 2008. That figure is the second highest historically for the month of October. Lease Property Update Demand for single-family and townhouse/condominium rentals increased in October, continuing an upswing triggered by Hurricane Ike, as many sought short-term housing while engaging in storm-related recovery projects. Single-family home rentals rose 36.0 percent in October compared to a year earlier, while year-over-year townhouse/condominium rentals were up 34.1 percent. Houston Real Estate Milestones in October Second highest average single-family home sales price for an October ($194,607); Highest average townhouse/condominium sales price for an October ($161,428); Second highest median townhouse/condominium sales price for an October ($129,000); Lowest month’s inventory of single-family homes since March 2008 (6.3 months).

The computerized Multiple Listing Service of the Houston Association of Realtors® includes residential properties and new homes listed by 26,000 Realtors throughout Harris, Fort Bend and Montgomery counties, as well as parts of Brazoria, Galveston, Waller and Wharton counties. Residential home sales statistics as well as listing information for more than 53,000 properties may be found on the Internet at http://www.har.com.The information published and disseminated to the HAR Multiple Listing Services is communicated verbatim, without change by Multiple Listing Services, as filed by MLS participants. The MLS does not verify the information provided and disclaims any responsibility for its accuracy. All data is preliminary and subject to change. Monthly sales figures reported since November 1998 includes a statistical estimation to account for late entries. Twelve-month totals may vary from actual end-of-year figures. (Single-family detached homes were broken out separately in monthly figures beginning February 1988.) Founded in 1918, the Houston Association of Realtors® (HAR) is a 27,000-member organization of real estate professionals engaged in every aspect of the industry, including residential and commercial sales and leasing, appraisal, property management and counseling. It is the largest individual membership trade association in Houston, as well as the second largest local association/board of Realtors® in the United States.

Real Estate prices across US – Great mapping tool

I just got this today and thought it was fascinating, and I think you will too.

You can move your mouse across most cities in the USA and by clicking on the little house you can then see the median price and the drop/gain in prices.  As you check on the median prices and the average increase or decline from the previous year, you will note that the Houston Market is very strong compared to the majority of the nation. Unfortunately, the Katy/West Houston area is not defined on this map but I will be happy to share that we have been in the # 1 and # 2 position for hottest markets in Houston for the majority of 2007 and 2008. Katy is still very strong and a wonderful place to purchase property and to raise a family.

To see the map click HERE.

As reported on my blog and in my newsletter, houses are being gobbled up now in some markets. In fact, many buyers are purchasing properties in depressed areas, sitting on them and waiting until the market conditions improve. This tells us that there is promise, after all we all need a place to live !

If you are sitting on a stagnant or decreasing IRA or 401K, did you know that you can move those funds (without penalty) into a Self-Directed IRA plan with a trustee/custodian and purchase real estate? Sound interesting? This a fabulous way to have more control over your retirement accounts as well as have the liquidity to move into the real estate market. I know, there are nay sayers who feel that the real estate market is too risky.  Well, have you seen your stock holdings lately? Risky is too soft a word for what happened to many of us. The interesting thing is while many stock holdings have lost up to 50% of their value, most real estate markets have held firm – with the exception of the speculative markets of California, Florida, Nevada and Arizona. These are markets that were unrealistically inflated by speculation and needed a correction – much like the dot com stocks several years ago. Of course, these are the only market we hear about in the news so everyone thinks the entire nation is up for a Fire Sale. Nothing could be farther from the truth.

When I speak about real estate investing, I am not speaking about speculation. That is a very risky enterprise and not a place to put your retirement funds. There are many solid real estate investments out there. In fact, the Warren Buffett’s and Donald Trump’s of the world are already adding to their portfolios. 

I am happy to share more information about Self-Directed retirement accounts and how you can take control of your nest egg. Good Luck and Happy Investing…

Understanding the First Time Home Buyer’s Credit… Before it is Too Late!

1.   Who is eligible to claim the tax credit?
If you are a first-time home buyer purchasing a new home or a resale-you are eligible for the tax credit.  The purchase must take place on or after January 1, 2009 and before December 1, 2009 to qualify for the tax credit. As it applies to the tax credit, the purchase date is the date when the home closes and the title to the property transfers to the home owner.

2.   What is the definition of a first-time home buyer?
The tax credit law defines a “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. If you are married, both spouses cannot have owned a home.

For example, if you didn’t own a home but your spouse did, you do not qualify.  For unmarried purchasers, the credit amount can be given to any buyer who qualifies as a first-time buyer, for instance, if a parent jointly purchases a home with a son or daughter. If you owned a vacation home or rental property not used as a principal residence you are not disqualified as a first-time home buyer.

3.   How is the amount of the tax credit determined?
The tax credit is 10 percent of the home’s purchase price, however, there is a maximum $8,000 credit.

4.   Are there any income limits for claiming the tax credit?4.
The full tax credit amount is given to buyers with a modified adjusted gross income (MAGI) of less than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. For taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) the credit is reduced to zero.  Taxpayers between these figures are prorated accordingly.
  
5.   What is “modified adjusted gross income”?
Modified adjusted gross income or MAGI is defined by the IRS.   For most buyers this will be the figure at the bottom of the first page of form 1040 or 1040A.  For Form 1040 EZ this is reported on line 4 as of 2008.

6.   If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
Possibly. It depends on your income.

7.   Can you give me an example of how the partial tax credit is determined?
There is a $20,000 difference between those who are eligible for a full tax credit and those where the credit is reduced to zero.  If you take the amount you are over the limit by and divide it by the 20,000, this will give you the percentage that you are over the limit by.  Subtract that number from 100% and then multiply it times the $8,000.  That will give you your tax credit amount.

For example: A married couple has a modified adjusted gross income of $165,000. Their income exceeds $150,000 by $15,000. Dividing $15,000 by $20,000 yields 0.75.  This means they are over the limit by 75% and so are eligible for a tax credit of 25%.  Multiplying $8,000 by 0.25 shows that the buyer is eligible for a partial tax credit of $2,000.

Please remember that this is an example. You should always consult your tax advisor.

8.   How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
The most significant difference is that this tax credit does not have to be repaid.  This tax incentive is a true tax credit. But home buyers must use the residence as a principal residence for at least three years or face having to repay it. Certain exceptions apply.

9.   How do I claim the tax credit? Do I need to complete a form or application?
You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on Line 69 of their 1040 income tax return. No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests.

10.What types of homes will qualify for the tax credit?
Any home that will be used as a principal residence qualifies for the credit. This includes single-family detached homes, attached homes (i.e. townhomes and condominiums), manufactured homes (also known as mobile homes), modular homes and houseboats.  If it qualifies for the capital gains tax on a primary residence, it qualifies for this.

11.I read that the tax credit is “refundable.” What does that mean?
It means that the credit can be claimed even if the taxpayer has little or no federal income tax liability to offset.

For example, if you owe $6,000 in taxes and had $4,500 in taxes withheld for the year you still owe $1,500 in taxes.  You would receive a check from the government for $6,500.  ($8,000 – $1,500 = $6,500.)
Or perhaps more common would be that you have a tax liability of $6,000 and you had $7,500 withheld so you would be getting a refund of $1,500 before the credit – the credit gets added to your refund so you would get a refund of $9,500 ($1,500 + $8,000 = $9,500)
And you don’t have to have any tax liability in the year you claim the credit – but you do have to have income.

12.I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns.How can I claim the new $8,000 tax credit instead?
You may file an amended 2008 tax return with a 1040X form. You should consult with a tax advisor to ensure you file this return properly.
 
13.Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
Yes. The “purchased” date is the date the owner first occupies the house.  The date of first occupancy must be on or after January 1, 2009 and before December 1, 2009.

In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit isdetermined by the settlement date.

14.Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
Yes. The tax credit can be combined with the MRB home buyer program. Note that first-time home buyers who purchased a home in 2008 may not claim the tax credit if they are participating in an MRB program.

15.I live in a district where I am already receiving a first time home buyer credit (Washington D.C.)   Can I claim both credits?
No. You can claim only one.

16.I am not a U.S. citizen. Can I claim the tax credit?
Consult your tax accountant.  If you are NOT a nonresident alien (as defined by the IRS), have not owned a principal residence in the past three years and meet the income limits you may be eligible to claim the tax credit for a qualified home purchase.

17.Is a tax credit the same as a tax deduction?
No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.

A tax deduction is subtracted from the amount of income that is taxed. Assuming the same $8,000 tax liability from above, a taxpayer is in the 33 percent tax bracket would have their liability reduced from $8,000 to $5,360. ($8,000 minus 33%).
So the tax CREDIT is much more helpful to the buyer

18.I bought a home in 2008. Do I qualify for this credit?
No, but you may qualify for another tax credit  if you bought  your first home between April 9, 2008 and January 1, 2009.
 
19.Is there any way for a home buyer to get the money before they file their 2009 tax return?
Yes. If you believe you will qualify for the tax credit you can reduce your withholding taxes on your paycheck by adjusting your withholding amount on your W-4 via your employer or through your quarterly estimated tax payment.  You can put this saved money aside to use as a downpayment.
 
IRS Publication 919 contains rules and guidelines for income tax withholding. Please note that if the qualified purchase does NOT occur, then you will be liable for repayment to the IRS of income tax and possible interest charges and penalties.  Consult your account prior to doing this.
 
20.If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
Yes. The law allows taxpayers the opportunity to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008.

Taxpayers buying a home who wish to claim it on their 2008 tax return, but who have already submitted their 2008 return to the IRS, may file an amended 2008 return claiming the tax credit. You should consult with a tax professional to determine how to arrange this.
 
21.For a home purchase in 2009, Can I choose which year to claim the credit (2008 or 2009) to make sure I get the largest credit possible?
Yes.  You can choose to claim the credit in the tax year that will give you the greatest credit based upon your MAGI.  The purchase must take place in 2009.

Social Media… ignore at your own risk!

I had the pleasure today to address an esteemed group of custom builders, members of the Greater Houston Builder’s Association and the subject today was Social Media and Marketing. Marketing for this group has always been very traditional. It is hard to imagine my being able to impress upon them the need to jump into The Groundswell… but I did and they were so interested that we have been asked to come back again to go deeper into this subject.

One of the things I spoke about is that I am the target market for a custom home buyer in Houston. I am a married Female of an age from 35 to 55 (not saying on which range I approach), dual income, heavy saver/investor, empty nester, etc. That said, I asked the audience how they were marketing to reach me with their message. And believe me, it is the woman making the decision here. What man in his right mind would look at his “paid off” home, low taxes, fully landscaped lawn, etc and say to his wife, “Honey, I think we should move…” Yeah, that is not happening.

So how are traditional marketers trying to reach “me”?

How about Print advertisements such as Houston Chronicle and magazines? No, this does not work because I download my Chonicle daily onto my Kindle DX (as well as magazines and books) and I do this for control, ease – only highlights and main articles and no advertising.

Radio? Well, no again… I listen to my iPod and Satelite Radio has effectively allowed listeners to have control over their music and again, avoid ads.

How about TV? Nope… other than the one news channel I watch live… anything else is recorded for later and again, ads are deleted.

So what is my message here? I am a pretty normal gal and not really all that techie but I am what I term “the hidden consumer”. I am hidden in the Groundswell and only respond to those seeking to reach me in my natural habitat.

So what is the lesson here? What worked yesterday, may not work today; and what will work today, most likely will not work tomorrow. Jump in the Social Media Pool… the water is warm and inviting.

Should we extend the First Time Home Buyer Tax Credit?

Unless you have been living under a rock, you may have heard that the First Time Home Buyer’s Tax Credit is due to expire at the end of November and along with that, the incentive for new buyers to enter the real estate market. There are some that say this is simply a boondoggle for buyers who would have bought anyway without the monetary bonus. I beg to differ… in my opinion as a “boots on the ground” Realtor working with first time home buyers who were happy renters and only decided to purchase a home with the help and benefit of this incentive… hey, $ 8500 goes a long way toward helping with the down payment, new furnishings or paying the mover.

There are several versions of this bill before our legislators at the moment seeking an extension … which is supported by the National Association of Realtors. I know what you are thinking and yes, that does sounds a bit self-serving for Realtors to support a bill that will help sell real estate. Very much like if GM or Chrysler lent its support for the extension of the infamous Cash for Clunkers program.  But it goes a bit deeper than simply trying to protect real estate transactions. Another version not only seeks an extension but also broadens the coverage to any buyer – which would be a boon to the move-up segment of our society but may prove too costly to pass. Personally, I would love this version to pass but at a minimum, the first time home buyer is the consumer who will benefit the most from an extension of the existing plan.

According to the NY Times Online in a recent article released on September 15th,

“Mark Zandi, chief economist of Moody’s Economy.com, favors expanding the credit to all home buyers, even investors, into next summer. “The risks of not doing something like this are too great,” he said. “I don’t think the coast is clear.” James Glassman of JPMorgan Chase echoed those views but said he favored continuing to restrict the credit to first-time buyers.

On the other side of the issue is the Tax Policy Center, a joint venture of the Brookings Institution and the Urban Institute. It labeled the original credit as one of the worst provisions of the stimulus package, on the grounds that the money is a bonus for people who would buy a house anyway. The center has an even dimmer view of extending the credit to all buyers. “Is this the best way to spend money we don’t have?” asked senior fellow Roberton Williams.

Dean Baker of the Center for Economic and Policy Research called the credit “a questionable redistributive policy” from renters to home buyers, but said that he used it himself when he bought a house.”

Our nation’s economic health has been and will always be driven in part by our housing market. I agree with Mr. Zandi that while the costs for the credit is high, the cost of doing nothing is so much higher. We are sitting on the edge of recovery and this extension will help push us further toward the brighter future that exists around the corner. Be sure and drop an email or note to your legislator to let them know how important this issue is to your nation’s recovery.

If you would like more information about who qualifies for the current program, click here to visit my previous post “Understanding the First Time Home Buyer’s Tax Credit Before it is Too Late!”

Susan G. Komen Race for the Cure in Houston 10/3/09

 

 

Dear Friends and Family,

Our Prudential Gary Greene Katy office always takes on a project for National Volunteer Day. This year we are joining thousands of other volunteers in a race for life.

I recently accepted the challenge to raise a mere $100.00 funds to support the 2009 Komen Houston Race for the Cure® being held on October 3rd in downtown Houston.  For those that know me and my pitiful ankle (broken or actually “ruined” according to the Ortho four years ago and still recovering from 2 surgeries) understand if this turns into a “Hobble for the Cure” but it will be worth it.

Please join me in the fight against breast cancer by pledging your support in the Race. Your tax-deductible contribution will fund local innovative outreach, awareness and treatment programs for the medically underserved in the greater Houston community as well as national cutting-edge breast cancer research.  

Please click here to support my participation.  I truly appreciate your support and will keep you posted on my progress. I plan to post photos and a short blog about the actual event.

 

I am so proud of our Pink Brigade here at Prudential Gary Greene, Realtors in Katy, TX. We are all racing or walking in honor of Rosemay Derstler’s daughter Nicole and sister Linda, both undergoing treatment for breast cancer as well as Phylis and April who are living as proof of the cure.

Thank you for your generosity.  Imagine Life Without Breast Cancer.

Sincerely,

Christi Borden

Census Bureau to Being …. Word of Caution to Keep in Mind

2010 Census to Begin

THIS IS PRETTY BASIC ADVICE; BUT, IN TODAY’S TIMES, I CAN SEE IT COULD LEAVE AN OPEN DOOR FOR PASSING OUT YOUR PRIVATE INFORMATION.

WARNING: 2010 Census Cautions from the Better Business Bureau

Be Cautious About Giving Info to Census Workers by Susan Johnson

With the U.S. Census process beginning, the Better Business Bureau (BBB) advises people to be cooperative, but cautious, so as not to become a victim of fraud or identity theft. The first phase of the 2010 U.S. Census is under way as workers have begun verifying the addresses of households across the country. Eventually, more than 140,000 U.S. Census workers will count every person in the United States and will gather information about every person living at each address including name, age, gender, race, and other relevant data.

The big question is – how do you tell the difference between a U.S. Census
worker and a con artist? BBB offers the following advice:

If a U.S. Census worker knocks on your door, they will have a badge, a handheld device, a Census Bureau canvas bag, and a confidentiality notice. Ask to see their identification and their badge before answering their questions. However, you should never invite anyone you don’t know into your home.

Census workers are currently only knocking on doors to verify address information. Do not give your Social Security number, credit card or banking information to anyone, even if they claim they need it for the U.S. > Census.

REMEMBER, NO MATTER WHAT THEY ASK, YOU REALLY ONLY NEED TO TELL THEM HOW MANY PEOPLE LIVE AT YOUR ADDRESS.

While the Census Bureau might ask for basic financial information, such as a salary range, YOU DON’T HAVE TO ANSWER ANYTHING AT ALL ABOUT YOUR FINANCIAL SITUATION. The Census Bureau will not ask for Social Security, bank account, or credit card numbers, nor will employees solicit donations. Any one asking for that information is NOT with the Census Bureau.

AND REMEMBER, THE CENSUS BUREAU HAS DECIDED NOT TO WORK WITH ACORN ON GATHERING THIS INFORMATION.. No Acorn worker should approach you saying he/she is with the Census Bureau.

Eventually, Census workers may contact you by telephone, mail, or in person at home. However, the Census Bureau will not contact you by Email, so be on the lookout for Email scams impersonating the Census.

Never click on a link or open any attachments in an Email that are
supposedly from the U.S. Census Bureau.

For more advice on avoiding identity theft and fraud, visit www.bbb.org

PLEASE SHARE THIS INFO WITH FAMILY AND FRIENDS.

First Time Home Buyer Credit bill under consideration as explained by CPA

This is a summary of the tax changes in the Baucus-Reid substitute amendment to H.R. 3548:

“The first-time homebuyer credit, set to expire on November 30 under current law, would be expanded and liberalized as follows (changes 2 through 4 would apply for residences bought after the enactment date):

“(1) The credit would sunset on Apr. 30, 2010, but for those who enter into a written binding contract before May 1, 2010 (to close on the purchase of a principal residence before July 1, 2010), the credit would sunset on June 30, 2010.

“(2) The credit would only be available for homes with a purchase price of $800,000 or less (currently there’s no price ceiling).

“(3) The credit would not be restricted to first-time homebuyers. It could be claimed by taxpayers who have owned and used the same residence as their principal residences for any 5 consecutive-year period during the 8-year period ending on the date of the purchase of the subsequent principal residence (i.e., the one that would qualify them for a credit). However, the homebuyer credit for these “long-time residents” could not exceed $6,500.

“(4) The modified AGI-based phaseout would be liberalized. The credit would begin to phase out for individuals with modified AGI above $125,000 ($225,000 for joint filers); currently the phaseout begins at $75,000 and $150,000 respectively.

•  
  • “To help combat abuse of the homebuyer credit (see Newsstand e-mail 10/23/09), the amendment would include in IRS’s mathematical error authority any omission of the homebuyer credit recapture (this would apply for homes bought on or after the enactment date). This authority allows IRS to summarily assess mathematical or clerical errors without conducting an audit. Additionally, the credit would not be available to taxpayers who can be claimed as a dependent, or to those under age 18. New documentation requirements also would apply along with prohibitions against certain intrafamily purchases.
  • “The homebuyer-credit recapture requirement would be waived for military personnel, including members of the Foreign Service and intelligence community, forced to sell as a result of an official extended duty of service. Additionally, military personnel serving outside the U.S. for at least 90 days in 2009 or 2010 would have one additional year to qualify for the homebuyer credit. “

As explained by Jim Turlington, CPA with Turlington, Reeves & Richard, PLLC – 16360 Park Ten Place, Suite 340, Houston, Texas 77084 – Office (281) 398-5661 Ext. 203 – Fax (281) 398-7409

Most Popular Online Pages on Texas Real Estate Center Site

Click here to view the RECON – Texas Real Estate Center’s report on the most popular online publications. This site is an incredible resource for anyone interested in what is happening with regard to real estate in the Great State of Texas.

As of January, here were the Center’s most popular online publications as determined by total visits:

1. Obtaining a Texas Real Estate License by Judon Fambrough — 1,887 visits.
2. “Ag-use Exemption: Fact or Fiction“ (revised Jan. 2010) by Judon Fambrough — 1,294.
3. Austin–Round Rock Market Report by Edith Craig, Beth Thomas, Kory Merten, Kelly Beevers and Kristen Wiehe — 1,012.
4. Monthly Review of the Texas Economy by Ali Anari and Mark Dotzour — 965.
5. Dallas–Fort Worth–Arlington Market Report by Edith Craig, Beth Thomas, Kory Merten, Kelly Beevers and Kristen Wiehe — 742.
6. Hints on Negotiating an Oil and Gas Lease by Judon Fambrough — 653.
7. Texas Rural Land Value Trends 2008 by ASFMRA — 649.
8. San Antonio Market Report by Edith Craig, Beth Thomas, Kory Merten, Kelly Beevers and Kristen Wiehe — 599.
9. Easements in Texas by Judon Fambrough — 557.
10. “Priority of Mortgage and Tax Liens” by Judon Fambrough — 534.

Posted from the RECON from TAMU Real Estate Center.

Top 10 list of “Must-Haves” in Today’s New Home!

Ris-Media recently published an article about their opinion of the top 10 items or features that top the list for today’s buyer. Click here to read this informative article.

However, one must always remember that real estate is local and the items may vary from area to area. In our market of Katy, TX and surrounding suburbs west of Houston, many of the features listed are the same but there are subtle changes and reasons for those changes.

The Ris-Media list is as follows:

1. Large kitchens, with an island.

2. Granite countertops.

3. Energy-efficient appliances

4. Home office/study.

5. Main-floor master suite.

6. Outdoor living room.

7. Master suite soaker tubs.

8. Stone and brick exteriors.

10. 2-car garages.

We live in an area where the average buyer moves about every 4 to 5 years as opposed to the national average of moving every 7 or more years. This is due to the transient nature of many of our residents who are employed with local oil, gas and chemical companies that tend to move their folks around more often than say, a local employer.

When building or buying a home, many of my clients ask me how their selections can affect resale later. I have a two-fold answer to that question. First, how long with they be in the home? If only for a short time (say less than 7 years), then it is best to purchase a home with the most popular features of the time because home trends should not have changed too drastically and those items should still be hot-ticket features that their future buyers will want. Of course, if we are talking about a long-term goal of ownership, it really does not matter what you install because when you move, trends will dictate a completely different set of priorities for buyers and and chances are the home will be ready for an update to accommodate those changes.

In dealing with today’s buyer in our area, I would suggest the following list of must-haves (in no certain order of importance):

1. Master-planned Community: In our area, the developer of a community is many times more important than the actual floor plan or builder of the home. It is easier to change the home to fit your needs than to try to change your community. Choose wisely as this can affect your future sales price and time on the market. Buyer’s who plan to stay only a few years will chose the community with the best schools and best track record for resale. In short, where you buy may be more important than what you buy!

2. Large Kitchens: I agree with this one as it is still a hot item and builders continue to provide incredible choices. Large islands and warm, stained cabinetry with custom touches are all the rage.

3. Granite counters: Yes, granite still rules. I know there are many alternative choices out there but none that compete with cool, hard granite. Buyers love that it is natural and hardy. Perhaps in the Loop Cement, Stainless Steel and other modern materials are desired, but in the ‘burbs, Granite rules.

4. Stainless appliances: still the top choice for today’s buyer but of course, this can be limited by the buyer’s budget. Black is very complimentary to many kitchen designs and we still see White but not often. As for energy efficient models, most builders include this at all price ranges. At the top tier custom level, you see professional grade appliances including warming trays, double convention ovens, convection microwaves and more.

5. Downstairs Master Suite: I realize that those from the North prefer to sleep upstairs so they can open the windows at night and enjoy a cool, gentle breeze. However, down in Houston we live in a much different climate where most days windows are sealed shut and the A/C is blasting cool air to keep us cool and control humidity in our homes. We like a downstairs bedroom because it keeps the kids and their noise and clutter out of sight and away from our tranquil retreat.

6. Study/Home office: this room has taken over the formal living space in almost all but the upper price ranges. People live a more casual lifestyle in our area and this floor plan choice reflects the need for home office space that is functional and not just pretty.

7. 3-car Garage: There are several reasons people request more than the standard 2 car garage: we do not have basements and limited attic space, many homeowners use their garage for storage and we live in a very family-oriented area with lots of teens of driving age and need the space for that extra car(s). Some builders offer tandem or stacked garages as an alternative to three full bays. This is fine but can affect resale if buyer does not want to do the old car shuffle when parking 3 vehicles.

8. Media Rooms: this feature started appearing in custom homes and worked it’s way down to the production homes about 5 years ago and is still a very popular feature. Many builders are adding upstairs mini-kitchens with microwaves, sinks and refrigerators. I do not see this item going away any time soon.

9. Hard Flooring: choices today are leaning away from carpet and toward wood and tile. 3″ wood planks are being replaced with larger planks and are more often hand-scraped and dark. Tile is best if larger than 12″ and many times laid in diagonal designs with natural stone or very elegant stone-like porcelain.

10. Pool-friendly Yards/Outdoor living spaces: Our climate lends itself to long, warm summers with nice breezes… perfect for cooking in our outdoor kitchen and diving into your crystal blue pool. Even if you do not plan to install a pool, it is wise to buy a home with sufficient backyard space to handle a private pool so it is easier to sell later. If you do install a pool, be sure your design matches your home in detail and price range. Popular pool items include: spa, water features, rock features, fire features, outdoor kitchens and fireplaces.

If you are thinking about building a new home, you may want to keep these popular features in mind. No, you do not have to select any of them but if you need to sell in the immediate future, your buyer may want them and that can hit your bottom line.