http://www.naeba.org/index.php en kkahl@naeba.info Copyright 2010 2010-06-03T13:43:13+00:00 http://www.naeba.org/index.php/blog/special-provisions-allow-military-home-buyers-to-capture-tax-credits/ http://www.naeba.org/index.php/blog/special-provisions-allow-military-home-buyers-to-capture-tax-credits/#When:13:43:13Z Extension of Homebuyer Tax Credit and Exemption from Tax Credit Recapture Rules Ease the Home Buying Purchase for Members of the Military Military families seeking to buy a home can count on a little tax help. The Homebuyers Tax Credit which provides eligible buyers with a tax credit of $8,000 for first time buyers and $6,500 for repeat home buyers ended on April 30, 2010 for civilians. However, active duty military or those on extended overseas duty have until on or before April 30, 2011 to have a binding sales contract in place.  The bill also exempts qualified service members on official extended duty from tax credit recapture rules. “We honor those who serve our country and are glad that this bill acknowledges the unique circumstances they face,” said Benjamin Clark, 2010 President of NAEBA (http://www.naeba.org). “This bill ensures that members of the military have equal opportunity to participate in the homebuyer tax credit and offers relief to struggling military families by making the mortgage payment tax deductible.” The Worker, Homeownership, and Business Assistance Act of 2009 provides a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence and a tax credit of up to $6500 for repeat home buyers who have owned a home for five consecutive years out of the prior eight years. The tax credit is available for eligible purchasers who have a binding sales contract in place by April 30, 2010, and close by June 30, 2010. However, realizing that members of the military, the Foreign Service and Intelligence Community have unique circumstances the bill has special provisions for this group: Tax credit extended for one year for military personnel serving outside the United States for at least 90 days during the period beginning December 31, 2008 and ending May 1, 2010. Eliminates the 36-month recapture requirement for military personnel, including members of the Foreign Service and intelligence community, forced to sell or move from a tax credit home as aresult of an official extended duty of service. Visit www.irs.gov for more information on qualifying and claiming the tax credit. To learn more about NAEBA and the benefits of using an exclusive buyer agent, visit http://www.naeba.org. Tips for Home Buyers 2010-06-03T13:43:13+00:00 http://www.naeba.org/index.php/blog/europes-debt-crisis-means-reduced-mortgage-rates-across-the-pond/ http://www.naeba.org/index.php/blog/europes-debt-crisis-means-reduced-mortgage-rates-across-the-pond/#When:21:00:50Z Mortgage rates are at historic lows, thanks to the European debt crisis. The average rate for a 30- year fixed loan as of mid-May 2010  is 4.87%, according to Bankrate.com-the lowest rate for the 30 years since Bankrate started keeping track 25 years ago. Jumbo loan rates-loans above $417,000 have fallen too-to 4.5% on average for a 30-year fixed loan. That’s down from nearly 6% last year at this time. Nervous European investors are seeking the security of US Treasurys-that pushes down their yield and influences multiple consumer interest rates including those on mortgages. CNBC reports that Laurence Yun, chief economist at the National Association of Realtors predicts rates will increase to 5.5% by end of June. He adds that higher mortgage rates will be necessary to refinance the debt on the US deficit. 2010-05-25T21:00:50+00:00 http://www.naeba.org/index.php/blog/coming-up-roses/ http://www.naeba.org/index.php/blog/coming-up-roses/#When:19:00:48Z The end of winter signals the beginning of the busy real estate season and the National Association of Exclusive Buyer Agents (NAEBA) is renewing an effort to educate buyers about the various choices for agent representation in the home buying process. While most states in the United States require agencies to disclose relationships, buyers are not always clear about what those relationships mean.   “We believe it is important that home buyers understand their options so they will make the best choice when selecting an agent,” commented Benjamin Clark, 2010 President of NAEBA. “It is our mission to educate buyers on the advantages of using Exclusive Buyer Agencies and we want buyers to have that information before they sign a binding agreement with a real estate brokerage.” A “buyer’s agent” is not always an Exclusive Buyer Agent (EBA). Agencies may have singular relationships, representing buyers or sellers only or they can be a dual agent that represents both sellers and buyers at the same time. Within a dual agency brokerage, there may be “buyer agents” but this differs from NAEBA (http://www.naeba.org) member companies where both company and agents exclusively represent buyers and never take listings. In fact dual agents and dual agency companies may represent buyer and seller in the same transaction, with written consent. Michigan resident and recent home buyer, Darrell Perry, learned one of the potential pitfalls of using a dual agency. “Our first agent showed us homes in areas we did not want to live and that offered none of the features we required,” commented Perry. “He told us there were no houses in our price range in our preferred area. We later discovered he only showed us homes listed with his agency. We thought he was working for our best interests.” Consumers who use an EBA can be certain that their partnership will be maintained throughout the purchase process. “We weren’t very familiar with the concept of an Exclusive Buyer’s Agent at the outset, but during the home buying process learned how valuable it can be to have our Realtor® looking out solely for our interests. The seller of the home we purchased commented that she wished that she had someone like our EBA on her side when she had bought the home,” said Utah home buyers, Jonathan and Laura Tanner. Home buyers can learn more about Exclusive Buyer Agency and locate an Exclusive Buyer Agent at http://naeba.org. Truth about Real Estate Agents 2010-05-07T19:00:48+00:00 http://www.naeba.org/index.php/blog/no-electronic-filing-for-home-buyers-claiming-home-buyer-tax-credit/ http://www.naeba.org/index.php/blog/no-electronic-filing-for-home-buyers-claiming-home-buyer-tax-credit/#When:22:08:05Z Electronic filing takes some of the stress out of tax day, but this year homeowners may be surprised to learn that if they are claiming the Home Buyer Tax Credit e-filing is not an option. Home buying experts, The National Association of Exclusive Buyer Agents (NAEBA) is urging homeowners to carefully review and follow the IRS guidelines to file for the credit, which include the requirement to print and mail a paper return. “NAEBA exclusively represents buyers in real estate transactions and our advocacy does not end when the purchase is finalized. We advise home buyers on all the issues involved in a home purchase. Tax season can be stressful and confusing and we want to ease that burden by passing on information that is important to the market we serve,” says Benjamin Clark, 2010 President of NAEBA. To qualify for the Home Buyer Tax Credit you must buy or enter into a binding contract to buy a principal residence on or before April 30, 2010 in the United States, and you must close on the home on or before June 30, 2010. According to the IRS the following steps must be taken to claim the credit: File a Paper Return. You cannot e-file but must file a paper return and attach Form 5405, First-Time Homebuyer Credit and Repayment of the Credit with additional documents to verify the purchase. You can digitally prepare your taxes using tax websites or software but must print and mail your return to the IRS with all required documentation.Deadlines and Documents. If you enter into a binding contract before May 1, 2010 to purchase a home before July 1, 2010 and are claiming the credit, attach a copy of the pages from the signed binding contract that show all parties’ names and signatures, the purchase price, date of contract and the property address.Settlement Documents. New homebuyers must attach a copy of a properly executed settlement statement, which will generally include property address, all parties’ names and signatures, sales price and date of purchase. Forms can vary by location and may not include both buyer and seller signatures. If your form does not require signatures on the settlement document, the IRS encourages buyers to sign the settlement statement when filing their tax return even if the form does not include a signature line.Newly Constructed Homes. If you purchased a newly constructed home, where a settlement statement is not available, you must attach a copy of the certificate of occupancy showing the owners’ name(s), property address and date of the certificate.Mobile Home Purchases. If you purchased a mobile home and are unable to obtain a settlement statement, attach a copy of the executed retail sales contract. The contract should have all parties’ names and signature, date of purchase, property address and purchase price.Long-time Residents. For long-time resident homebuyers claiming the tax credit, the IRS recommends attaching documentation that covers the five-consecutive-year period. This may include documents such as Form 1098, Mortgage Interest Statement or substitute mortgage interest statements, property tax records or homeowner insurance records. Homebuyers can find more information about the Home Buyer Tax credit on the IRS website at http://www.IRS.gov/recovery and can locate home buying resources and an Exclusive Buyer Agent at http://www.naeba.org. Tips for Home Buyers 2010-04-15T22:08:05+00:00 http://www.naeba.org/index.php/blog/cnn-money-calls-purchasing-real-estate-in-2010-a-no-brainer/ http://www.naeba.org/index.php/blog/cnn-money-calls-purchasing-real-estate-in-2010-a-no-brainer/#When:15:39:38Z As we are on a roller coaster on a downhill slope toward the end of the tax credit, we are weighing the question of why buy in 2010.  NAEBA, the National Association of Exclusive Buyers Agents, is a network of trusted agents who represent only buyers’ best interests and we will help you examine the top 5 benefits of buying now. 1. No one has a crystal ball into the 2010 market, but once the tax credits end, mortgage rates are anticipated to skyrocket. For this reason, the longer you wait to purchase, the more expensive your new home could be. 2. Based on this potential hike in mortgage rates, the number of savvy consumers purchasing now is increasing which means you can sell your current home faster than you would be able to when the more expensive mortgages causes the market to slow. 3. It is a buyer’s market due to the influx of homes on the market because of the increase in foreclosures. According to US News, this gap between the buyers’ and sellers’ markets is expected to narrow later in 2010. 4. It may become harder to secure a loan. Mortgage delinquencies are up, which will likely result in the FHA tightening their belts on lending standards. Changes may include, “raising up-front cash requirements, boosting minimum credit scores, and perhaps charging more for insurance premiums” said US News. 5. Homebuilders are in the same financial crunch as the rest of us. If you are purchasing a new home, consider builders are narrowing their margins in order to stay afloat. These tips are not a cure-all for the current economic climate. You must factor in the home values in your specific market as well as your individual circumstances. Find a NAEBA agent near you at www.naeba.org to find the best home-buying strategy for you.   Tips for Home Buyers 2010-03-29T15:39:38+00:00 http://www.naeba.org/index.php/blog/remove-home-buyer-tax-credit-marriage-penalty/ http://www.naeba.org/index.php/blog/remove-home-buyer-tax-credit-marriage-penalty/#When:18:41:10Z The National Association of Exclusive Buyer Agents (NAEBA) expresses support for legislation recently introduced by Representative Eliot Engel (D-NY17) that would amend the Internal Revenue Code of 1986 eliminating the so called “marriage penalty” from the Home Buyer Tax Credit. The current guidelines require both spouses to have the same exact ownership history in order to claim the tax credit, a standard that does not apply to unmarried couples, effectively penalizing married homebuyers. “We applaud Representative Engel’s leadership on this issue and fully support this legislation that will make the current homebuyer tax credit section of the Internal Revenue Code of 1986 more equitable for all potential home buyers,” said Benjamin Clark, 2010 President of NAEBA. The Worker, Homeownership, and Business Assistance Act of 2009 provides a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence and a tax credit of up to $6500 for repeat home buyers who have owned a home for five consecutive years out of the prior eight years. The tax credit is available for eligible purchasers who are in contract by April 30, 2010 and close by June 30, 2010. H.R. 4701, introduced by Representative Eliot Engel (D-NY17), would provide relief to certain married couples who would otherwise be ineligible for the first-time homebuyer credit. The bill provides that married individuals filing a joint return would qualify for the appropriate credit even where one spouse is ineligible. For example, if one spouse is a first-time homebuyer and the other is ineligible, the couple would be treated as first-time homebuyers. However, such a couple could qualify for up to $4,000.00, as opposed to the full $8,000.00 tax credit had both spouses been first time homebuyers. The bill has recently been Introduced in the House of Representatives. 2010-03-18T18:41:10+00:00 http://www.naeba.org/index.php/blog/record-low-mortgage-rates-continue-increases-expected-soon/ http://www.naeba.org/index.php/blog/record-low-mortgage-rates-continue-increases-expected-soon/#When:17:09:42Z AVONDALE, AZ - February 19, 2010 - The Federal Home Loan Mortgage Corp., known as Freddie Mac, released the latest results of its weekly Primary Mortgage Market Survey showing that the 30-year, fixed rate mortgage finance rate averaged 4.93 percent with an average 0.7 point for the week ending Feb. 18, 2010,down from last week’s average of 4.97 percent, maintaining historic lows in home financing rates. One year ago the average 30-year rate surveyed by Freddie Mac was 5.04%. The record low 30-year rate reported by Freddie Mac since its inception in 1970 was 4.71%, posted in early December 2009. Officials of The National Association of Exclusive Buyer Agents (NAEBA) said these rates make home purchasing more affordable to millions of Americans, however the association warned that all indications are that rates will begin to rise later this spring. “The Federal Reserve launched a program last year with $1.25 trillion designated to buy up mortgage securities, adding a great deal of liquidity to the mortgage market and keeping rates low,” said Kimberly Kahl, NAEBA’s Executive Director. “However, that program is scheduled to run out at the end of March and most observers, including NAEBA, believe that rates will go up as a result. There’s a small chance that the Fed will extend the program, but to date there’s been no definitive word on that.” Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters. In the latest Freddie Mac mortgage rate survey, the 15-year FRM this week averaged 4.33 percent with an average 0.6 point, down from last week when it averaged 4.34 percent. A year ago at this time, the 15-year FRM averaged 4.68 percent. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.12 percent this week, with an average 0.5 point, down from last week when it averaged 4.19 percent. A year ago, the 5-year ARM averaged 5.04 percent. The 1-year Treasury-indexed ARM averaged 4.23 percent this week with an average 0.6 point, down from last week when it averaged 4.33 percent. At this time last year, the 1-year ARM averaged 4.80 percent.  “Mortgage rates eased for the second week, while economic data releases suggest that the housing market may be in a slow state of recovery,” said Frank Nothaft, Freddie Mac vice president and chief economist. “The National Association of Realtors® (NAR) reported that existing home sales rose in 48 states and the District of Columbia between the third and fourth quarters of 2009; 32 states experienced double-digit growth. In addition, 67 metropolitan areas saw positive annual house price growth in the fourth quarter, more than double that in the third quarter, according to the NAR. “New home construction is also slowly improving. One-family housing starts rose to an annual pace of 484,000 homes in January, which is up almost 36 percent from January 2009, based on the U.S. Census figures. Moreover, homebuilder assessments of market conditions over the first half of 2010 improved in February, according to National Association of Homebuilders/Wells Fargo Housing Market Index.” In another mortgage survey, conducted weekly by Bankrate.com, the nation’s large mortgage lenders reported 30-year fixed mortgage rates at 5.11% for the week ended February 17, 2010, down 0.04% from the previous week. Rates for 15-year fixed mortgages and 5-year ARMs were both reported at 4.51%, reflecting decreases for both categories from the week before. In releasing its weekly data, Bankrate.com officials said that mortgage rates could increase to over 6% by the end of the year due to a combination of the Fed ending its mortgage investment program, growth in the overall economy and an expected recovery, however slight, in the nation’s housing market.    NAEBA was established in 1995 by real estate agents who recognized the need to establish guidelines to protect the best interests of buyers in home purchasing transactions. The association maintains a rigorous list of membership requirements, including Certified Exclusive Buyer Agent certification, ongoing education, and state-by-state knowledge bases that ensures each NAEBA agent is an expert in both national and local real estate laws, markets and practices. For more information about NAEBA and to find a NAEBA agent locally, visit the association’s website at www.naeba.org, use its Find An Agent Form,  or call the NAEBA Referral Service at 800-986-2322.     2010-03-03T17:09:42+00:00 http://www.naeba.org/index.php/blog/home-buying-tax-credits-to-end-april-30-2010-still-time-to-take-advantage/ http://www.naeba.org/index.php/blog/home-buying-tax-credits-to-end-april-30-2010-still-time-to-take-advantage/#When:17:12:43Z First-time home buyers can secure a federal income tax credit of up to $8,000 and existing homeowners can claim a tax credit of up to $6,500 if they enter into a binding sales contract to purchase a home by April 30, 2010, and complete the closing by June 30, 2010. The National Association of Exclusive Buyer Agents (NAEBA) says there is still time to claim this substantial incentive money, but advises prospective buyers to act quickly. NAEBA agents throughout the United States are well schooled in all of the details of the program and can assist both first-time homebuyers and move-up/repeat buyers not only get the best deal on a new home, but secure a valuable tax credit in the process. NAEBA notes that the program is a tax credit, not a tax deduction, so the credit can be claimed dollar-for-dollar against what homebuyers owe on the federal taxes for the qualifying year. Moreover, NAEBA notes that members of the U.S. military, Foreign Service and employees in the intelligence community who are ordered on a period of official extended duty overseas may extend the effective dates of home purchases and closings for an additional year. There are income limitations on who qualifies—$125,000 for an individual and $225,000 for a married couple filing joint returns - but it effectively covers more than 95% of the US population, NAEBA said. Also, the tax credit only applies to homes costing a maximum of $800,000, but once again that covers all but a fraction of American neighborhoods. For more information on the tax credit program and to discover the benefits of buying a home with an Exclusive Buyer Agent, find a NAEBA agent by clicking here.   2010-03-01T17:12:43+00:00 http://www.naeba.org/index.php/blog/quick-decorating-fixes-for-home-buyers/ http://www.naeba.org/index.php/blog/quick-decorating-fixes-for-home-buyers/#When:19:55:27Z So you’ve decided to buy a home and your Exclusive Buyer Representative has carefully vetted all of your desires in that new home.  One of the services your NAEBA real estate agent will do is to show you all of the properties that fit your “model” in your preferred location at or under your loan approval amount. An independent buyer agent is different than other Realtors in that he/she will also show you homes listed for sale by owner, foreclosure properties and others not necessarily shown in the MLS. Your NAEBA agent will gladly help you source the inspector prior to buying your home plus lead you to loan resources for your mortgage. But they can also connect you with subcontractors or point you in the direction of the nearest Home Depot or Lowe’s, because it’s a NAEBA agent’s mission to find out every detail about the neighborhood you have chosen. One of the immediate improvements a buyer can make to their home includes fresh paint. Often homes for sale have been repainted white or off-white for the purpose of making the interior more appealing to a broad base of buyers while also making the rooms look bigger. Personalizing the home with colors that suit the new owner’s personality and furnishings is relatively quick and easy to do. Paint consultant Sara Noel of Noel Designs in Denver, CO advises clients on color palettes for their homes to makeover the entire look for less investment than other improvements. Tidbits of knowledge gleaned from Noel include using lighter colors at the front end of a house or condo that is long and narrow. Darker colors have greater impact when applied to the back wall in this scenario. Noel is often called upon by clients to glaze older, tired kitchen cabinets rather than reface or replace the cabinetry. Complimented by new granite kitchen counters, a glass tile backsplash, and new cabinetry handles, the look is new and highly customized without overspending. Gary Stone, owner of Allstar Electrical in Denver Colorado recommends changing out light fixtures to remake the mood of a room. Electrical fixtures for the kitchen, bath, entryway, and exterior can give a home an entire new feeling and again, the investment is modest. Older homes often demand new service as older homes weren’t equipped with enough electrical outlets to service today’s needs. It’s a safety measure as much as it is a convenience. Other quick facelifts can be achieved by refinishing existing hardwoods, or replacing old carpet with a new installation of hardwood floors. Pedestal bathroom basins and vessel sinks can bring the bathroom focal point into this era for less than one might think. Then there’s the issue of window coverings. Remove those tired ‘70s draperies and replace them with rods and simple panel drapes. Or install plantation shutters for a classic look that helps with energy costs.   2009-11-11T19:55:27+00:00 http://www.naeba.org/index.php/blog/myths-vs.-fact-about-buying-today/ http://www.naeba.org/index.php/blog/myths-vs.-fact-about-buying-today/#When:23:34:40Z Plenty of myths surround the experience of home buying. The problem is that the truisms of yesteryear may not hold true today, what with the recession of 2009, the predictions for the economy, and the transient nature of some career paths today. You may have heard that you should “Always buy the biggest home you can afford.” One of the driving factors in buying a house is how much house one can afford. Even before touring homes for sale, smart buyers shop for a mortgage loan. The lender will provide you with a loan commitment letter specifying the maximum amount they will lend you for your mortgage. This is the point where couples need to ascertain whether they want to invest in real estate to the max or up to a lesser amount. That answer is purely subjective. Your NAEBA agent will take you through your preferences. Consider what is the maximum payment you are comfortable with making each month toward a mortgage. If it’s less than the loan commitment letter, turn your search down a notch and start looking at homes that meet your requirements, but may not offer all of the amenities a dream home might include. You can always move up later on, keep the first home as a rental to create a second stream of income or add on to your current home. 2009-11-07T23:34:40+00:00