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Unless you’ve been living under a rock for the last year, many potential home buyers & sellers were aware of the great $8,000 tax credit for 1st time home buyers. But many consumers are not aware of all the other tax credit programs that are available:
- $8,000 tax credit for 1st time home buyers extended until April 30, 2010, must close by June 30th, 2010. Click HERE for more info.
- NEW-$6,500 tax credit for move up/repeat buyers. Existing home owners must have occupied their home for 5 years. Click HERE or contact me for more detailed info.
- $1,500 tax credit for energy efficiency updating for existing homes. Improvements must be completed by December 31, 2010. Most popular updates are: new furnace, central air, tankless water heaters, windows, doors, patio doors, water heaters, etc. Click HERE for completed list of eligible improvements and more info.
- State of Ohio Energy Efficient Appliance Rebate Program. Ohio residents can receive anywhere from $100 to $250 for EACH eligible appliance that they replace ($700 maximum). Program starts 1st quarter of 2010. This rebate program offers the perfect excuse to buy a new expensive front loading, super high-efficiency steam washer & dryer. Program ends when funds are depleted. Rebates will possibly only last 4-6 weeks. Important info: Ohio appliance rebate program, Ohio offers rebates for Energy efficient appliances, Rebate Program Outline
We hope this information can help save you some money. Please contact me if you have additional questions.
Disclaimer: Please consult a tax professional or accountant for additional details and eligibility questions regarding the federal tax credit programs. Thoroughly review all guideline requirements for energy-efficient home improvements or appliances before making the purchases.
Good luck out there.
Representing People, NOT Property!
Another new home builder in the Central Ohio area has called it quits. On Tuesday, Joshua Homes unexpectedly shut down its web site and disconnected their phones. Joshua Homes appears to be the latest, in a long list, of new home builder casualties in our market. In the past few 
years Central Ohio area has lost many new home builders:
- Toll Brothers
- Joshua Homes
- Centex Homes
- CV Perry
- Beazer
Many current Joshua home owners are very concerned about their new home warranties. This latest new build casualty really magnifies the potential problem of new home warranties. Joshua Homes had one of the longest home warranties (40 year) in our area. But, a warranty is only as good as the builder or warranty company. Does it really matter if you have a 40, 45 or even 50 year new home warranty if your builder is out of business in a few years?
The home buying consumer needs to realize that new home builder warranties are NOT regulated by any State agencies or the Department of Insurance. It is buyer beware! So, make sure you use an Exclusive (true) Buyer Broker when purchasing your next new home. An Exclusive Buyer Broker will protect you during your transaction and act as your advocate.
Good luck out there.
Representing People, NOT Property!
This is a follow up to my blog post on March 25th, “Toxic Drywall Could Be Largest Lawsuit In US History!” This blog post produced record high amount of views and comments. We really tapped into a very important topic for the consumer.
The good news is that the Columbus Dispatch is reporting that it appears there is NO Chinese drywall in the Columbus, Ohio area. The Columbus Dispatch did a thorough job of interviewing new home builders, home contractors, drywall suppliers and it appears that no toxic Chinese drywall made it to the Central Ohio area.
The Bad news is that the toxic Chinese drywall is definitely in the United States. In 2005, Chinese manufacturers shipped 500 million pounds 
of drywall mainly to southern gulf coast states of Florida, Louisiana & Texas. Chinese drywall smells like “rotten eggs” and is being blamed for damaging furnaces and electrical wiring, tarnishing jewelry and possibly sickening families. So the potential is still there for toxic Chinese drywall to be the largest lawsuit in US history. Just be happy that it is not in our area.
NAR Green Designation
Congratulations to Andrew Show for being the only Exclusive (true) Buyer Broker in the State of Ohio that has obtained the National Association of 
Realtors (NAR) GREEN certified designation. (NAR Green Council)
Consumer demand for real estate professionals that are GREEN knowledgeable is exploding. More home buyers are requiring their Buyer Agents to understand Green building principles and the financial advantages of properties that are energy efficient and ecologically friendly to the environment.
Again, Congratulations Andy!
A good story on WSYX-ABC 6 – “Six On Your Side” about toxic drywall from China. M/I homes faces a lawsuit for possible toxic drywall. This has the potential to be a HUGE local and nationwide story.
It seems like the story is really flying under the radar. I wonder why this isn’t getting more media/press coverage?
M/I Homes is the largest new home-builder in Central Ohio.
(Watch Consumer Alert Story)
This lawsuit has the potential to be the largest class action home defect lawsuit in US History!
Stay tuned for future updates and opinions in blog. A story this big could be a “game changer”!
Be careful out there.
Your home is probably your most valuable asset. You want to make sure your home is fully insured. But, you don’t want to be over-insured. 
Many home owners don’t fully understand all the coverage options of their home owners’ insurance policy.
This blog post will give you 10 quick tips on how you can SAVE money on your home owners’ insurance premium.
- One insurer, multiple policies – It is best to have all your insurance policies (home, auto, boat, life, etc.) with one company. Almost all insurance companies will give their customers multi-policy discounts.
- Raise your deductible – You can possibly save between 12% – 37%, if you have a deductible of $500 to $5,000. You might not want to carry the same deductible amount for your auto and home owners policy.
- Newer is better – Home owners’ insurance premiums are less expensive for newer built homes. Older homes are typically more costly to rebuild and newer homes have safe, new mechanical systems. (electrical, heating, plumbing, etc.)
- Location, location, location – Do you live in earthquake prone California? Do you live in Florida where hurricanes are a fact of life? Other location issues to consider; are you close to a fire station?
- Insure the house, not the land – A fire and high winds will destroy your home, but not your land. Your land cost typically makes up 15% – 25% of your total home value.
- Don’t insure what you don’t have – Review your policy at least once a year. Make sure you aren’t over-insuring possessions (furs, computers, jewelry, guns, etc.). Also, pay close attention to endorsements on your policy. The amount of insurance protection that your receive per endorsement premium dollar is typically very costly.
- Better safe, than sorry – Smoke detectors, monitored security systems (fire/police), fire extinguishers, etc. can save you discounts from 5% – 20%.
- Where there is smoke, there is fire – More than 23,000 residential fires happen in the USA due to smoking issues. Some insurers offer discounts if all residents in home are non-smokers.
- Group discounts – Some insurers offer discounts to certain business or alumni associations. Make sure you ask your agent about this discount.
- Don’t jump around – If you are satisfied with your insurance company or agent then stay with that company. Most insurance companies offer discounts if you stay with them for 3, 5 and 10 years.
As always, you want to check with a licensed insurance agent before making any changes to your home owners’ insurance policy. I am NOT an insurance agent.
Special thanks to Stephen Evanko, Jr, Insurance Advisor and Author for reference material for this blog post.
Good luck out there!
IMPORTANT: Blog post modification. The source (Ohio Association of Realtors-OAR) for this blog post was inaccurate. I am sorry for the confusion. OAR incorrectly stated that new changes will apply to all single family homes. This is incorrect. Changes on April 1st will apply only to condominiums and investment properties. See previous blog post for more information: https://mybuyerbrokerblog.com/2009/01/08/new-condominium-loan-guidelines-for-2009/ I am sorry for the confusion.
Wow, this is incredible new (bad) news. It looks like the only good option for home buyer’s will probably be an FHA loan. Fannie Mae and Freddie Mac are both toughening their credit score and down-payment rules as of April 1.
In response, major lenders are already factoring in the higher fees, which reduces the effectiveness of the stimulus efforts.
Under the new guidelines:
- Buyers with down payments of less than 25 percent will be charged a three-quarter point add-on penalty, no matter how high their credit score
- Buyers of duplexes, where one unit is owner-occupied and the other is rented, will be charged a 1 percent add-on
- Refinancers who take cash out will be charged as much as three points if they have a low to moderate equity stake.
Freddie spokesman Brad German says the loan categories and credit risk combinations targeted by these fees “default at four-to-eight times” the rate of other mortgages backed by Freddie. “We have to manage these risks appropriately,” he says.*
Good luck out there!
*This blog post referenced “Ohio Association of Realtors” email newsletter.
If you are looking for help to buy a home in Columbus, Ohio then you should contact a Buyer’s Agent. But, not all Buyer’s Agents are the same. The best representation for a residential or investor home buyer in Columbus, Ohio is an Exclusive Buyer Agent (EBA) or Exclusive Buyer Broker (EBB). An Exclusive Buyer Agent will always look out for your best interest and protect you in the home buying process.
Here are the TOP 10 reasons to use an Exclusive Buyer Agent:
- We ONLY represent buyers. We are EXPERTS at buyer representation.
- We negotiate the BEST price and terms for you.
- We don’t sell homes. We advise, counsel and educate.
- We assist Buyers in evaluating the BEST financing options.
- We have a duty to DISCLOSE all material information to our Buyer’s.
- We are Buyer advocates that work to PROTECT your investment.
- We are the GUARANTEED highest level of representation.
- We SAVE you time and money. We pay attention to the details.
- We provide MORE available homes to our Buyer’s than most other agents.
- We locate, evaluate and negotiate for our Buyer’s.
For more information contact an Exclusive (true) Buyer Agent today.
Helping home buyers is our only speciality.
A true Buyer’s Agent (EBA) will have no conflicts of interest….ever!
An Exclusive Buyer Agent is NOT Superman. But, we are the home buyers best protection and advocate in the home buying process.
Good luck out there.
Starting in January 2009, Condo loan guidelines will be even more difficult for home buyers. Fannie Mae & 
Freddie Mac guidelines will change which will affect nearly all conventional condo loans. But, FHA loans should not be affected (good news). The major change is a pricing adjustment that will increase the interest rate for the following condo loans.
- Buyer is putting down 25% or less (Loan to value percentage exceeds 75%).
- If a condo loan term is great than 15 years
The approximate rate increase on these types of condo loans will be 1/2% or higher.
These new condo guidelines would have affected nearly 99.999% of all condo owners that I have helped since 1996. This is a ridiculous new change that I think will really hurt condo sales in the Columbus, Ohio area. We are moving in the wrong direction if we want to try and help the real estate and mortgage industry recover.
Good luck out there!
US Treasury and FDIC Bailout!
This past Summer, Congress passed a $300 billion housing bill to rescue Freddie Mac and Fannie Mae and to help thousands of homeowners avert foreclosure.
The housing bill should definitely help the volatile housing and financing markets.
At the time, the housing bill was record breaking landmark legislation. But, Oh my how much has changed in 2008:
Largest US bank failure – Washington Mutual, $307 billion in assets.
Federal Reserve intervenes to save investment bank giant “Bear Stearns”. JP Morgan bank takes over Bear Stearns and receives $29 billion dollar loan from government.
IndyMac bank failure $32 billion in assets.
U.S. Government to take over failed AIG in $85 billion bailout.
In October, the new, largest government bailout in history to help US banks – $700 billion dollars.
There has been so much that has happened in the past 5-6 months that is easy to forget about one of the most beneficial aspects of the $300 billion bailout in July. The $7,500 tax credit is a great benefit for 1st time home buyers.
Here is everything you need to know:
Eligibility:
- Purchase a home between April 9, 2008 and June 30, 2009.
- Must be a first time homeowner or haven’t owned a home in the last 3 years.
- New home purchase must be your principle residence.
- Maximum income requirements (Adjusted Gross Income) for full $7500 tax credit benefit is $75,000 for individuals and $150,000 for married couples.
- Partial tax credit benefit eligible for adjusted gross incomes up to $95,000 for individuals and $170,000 for married couples (see phase out charts below)
Terms:
- $7,500 tax credit is basically an interest free loan from Uncle Sam.
- There is no application or approval process.
- If you are eligible, you simply claim the tax credit when you do your 2008 or 2009 taxes (IRS form 1040).
- Payment starts 2 years after you apply for the credit.
- Those qualifying for the full $7,500 tax credit will pay $500 once a year for 15 years.
- If you receive less than the full credit your payment schedule will be 6.67% per year over 15 years.
- Payment will be done via completing your federal tax return every year.
- You will owe nothing if you lose money on the sale of your home. Also, regardless of the sale price, you will never have to pay money “out of your pocket”. Here are 3 good examples that will better explain everything:
- Purchased a $200,000 home, sold 4 years later for $204,000. At time of sale you still owed $6,500 on tax credit. You would just have to pay $4,000. The remaining $2,500 would be forgiven.
- Purchased a $200,000 home, sold 4 years later for $199,999. At time of sale you still owed $6,500 on tax credit. You lost money on your home purchase. The entire remaining $6,500 balance would be forgiven.
- Purchased a $200,000 home, sold 4 years later for $225,000. At time of sale you still owed $6,500 on tax credit. You are responsible to pay the full $6,500 remaining balance.
Basic Q&A’s:
- Are there restrictions on the location of the property? Yes, property must be located in the United States. Property outside the US is not eligible for the tax credit.
- Are there restrictions related to the financing of the property? Yes, if your financing is obtained via a mortgage revenue bond (example; a tax exempt bond related program from a state housing agency) then you will NOT be eligible for tax credit.
- Are there any other types of financing restrictions? No, all types of mortgage finance programs are eligible. For example; Conventional, FHA, VA, cash, sub-prime (boo hiss), non-conforming, etc. Even cash purchases qualify as long as purchaser meets all other eligibility requirements listed above.
- Are there minimum or maximum home purchase prices? No, maximum home purchase price for tax credit. Homes purchased under $75,000 will only receive 10% tax credit. For example, Buyer purchases a $50,000 condo. The maximum tax credit will be $5,000.
- What types of housing qualifies for tax credit? All types of home ownership qualifies. For example, condos, co-ops, existing single family, new builds, manufactured homes, town homes, duplexes even houseboats!
- What happens if I sell my home within 15 years? You are not reading my post. You are just “skimming” the article. Review the last bullet point in terms section above.
I think the $7,500 tax credit is a great benefit for the first time homeowner. If you meet eligibility requirements then you should really take advantage of this tax credit.
But, some home owners would say “What’s the big deal? I still need to pay pay back the $7,500!” I would tell you there are 2 very important things to consider:
Federal Bailout
- Basic economic principle called the “time value of money”. Money now is more valuable than money in the future. This principle is especially true now in this bad economy. Cash is King!. So, I guess my bachelors degree in Finance from the great Ohio State University was worthwhile.
- A tax credit is more valuable than a tax deduction. A credit affects the tax amount you owe or refund amount dollar for dollar. A tax deduction just reduces your adjusted income that is taxable.
IMPORTANT: I’m just trying to help the “average Joe home owner” understand the $7,500 tax credit. I have to put this CYA disclaimer in my post. Please consult a tax professional for more details and eligibility questions regarding the $7,500 1st time home owner tax credit. I’m not an accountant or tax professional.
Good luck out there
My Buyer Broker Advocate! 
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