During 2009, our company held 840  Open Houses in all sorts of locations and price ranges.    In our South Central Indiana location, Open Houses are an effective way for Sellers to gain increased exposure and advertising.  Open Houses also serve the purpose of  allowing potential Buyers an opportunity to screen homes, better define their housing requirements and priorities and meet agents. 

The establishment of a relationship between Agent and Buyer is really important.  Finding someone who  understands the timing, financing, physical appearance and space demands, color and style preferences is extremely important.    When the message is not clearly understood by the Agent who continues to find  properties that never quite fit, the Buyer eventually becomes frustrated, sometimes believing that the perfect house doesn’t exist or perhaps their expectations are unrealistic.  A real danger of the Buyer settling for that “WILL DO” property is very sad for it typically translates into another move, earlier than intended. 

Of course, another problem that happens in the situation where Agent can’t find a property or understand the Buyer’s preferences is that the Buyer becomes frustrated and puts off purchasing for an extended period.   The obvious problem created by this miss is the loss of tax benefit, appreciation, maybe , a favorable interest rate and possibly missing  the window of opportunity for the Tax Credit.

After years of selling residential real estate and thoroughly enjoying it, I believe every Buyer has the right to feel excitement about the purchase of a first home, a new home, or just a different home.  Despite the price range, the decision to move forward with larger, newer, wooded, country is great.  Change is great.  So often, I have witnessed people  “stuck” with same old house, same old furniture, same old landscaping decide to take the “plunge”.  What I have then observed is a new excitement/interest in life.  With the purchase of new furniture, interest in fixing up, planting trees -all of a sudden, life is fun!

The special thing I experienced as a real estate agent was a satisfaction and fulfillment in playing a role in such a happy experience.

Church Steeple

Upon returning from a long-weekend vacation in Quebec City (some pictures of Quebec City are included), I glanced at the stack of newspapers that had accumulated from the 5-day trip.  As I was attempting to read the local newspapers (The Republic -  http://www.TheRepublic.com) that had accumulated during our absence, I was struck by the fact that my mood was so improved by some optimistic headlines that had appeared regarding Cummins Engine Company jobs, the start of the construction for the long awaited Commons in downtown Columbus and the plan under consideration to build a new condominium project also located in downtown Columbus.

Statue on the Square

The national news media has been focused on signs that the recession could be ending.  Locally, we are seeing signs that the economy is improving; we are seeing more traffic on our websites, more inquiries

Sidewalk Cafe on the Square

on our listings and agent showing activity has definitely increased!  As the interest rates remain appealing, it is our hope that the pent-up demand that we have been waiting for may in fact be surfacing.

As a real estate company, we have been sensitive to the frustration of sellers who need to sell quickly when “selling quickly” hasn’t been the reality.  We have talked about positioning a property to distinguish it from the others within a price range to make it stand out, increasing the appeal to possible buyers.  

We are continuing to work tirelessly to create the programs, increase the marketing efforts to attract the buyers for this is truly an excellent time to buy.  We are educating on the up to $8,000 1st Time HomeBuyer Tax Credit and the need to act now to take advantage of the program requiring closing on the property before December 1, 2009.

Gorgeous scenery

There is no question that demand for homes in Columbus Indiana  has been drastically reduced.    Of course, this is true in Indiana real estate as well as homes sales across the country.

The number of sales of homes for 2009 year-to-date thru 7-31-09 as compared with the same period in 2008 in Columbus was reduced by 33.5%.   When comparing 2009 to the same period in 2007, the number of sales was reduced by 44.5%.    This is an enormous difference. 

It is obvious that the Columbus real estate market has suffered during 2009 beyond all expectations.  The lower interest rates and buyer incentives have created some demand but have not stimulated the market locally or nationally as hoped. 

Likely,  a long term reduction in the pool of buyers will be the consequence of of the increases made in required credit scores raising the score necessary higher for mortgage loans.  Also, there have been changes in minimum down payment so that no down payment loans and seller participation in the down payment programs are no longer available.  

Thus pessimism, joblessness, high credit scores and greater down payment have all played a huge part in a greatly reduced number of sales for 2009.   Some of these changes will have long-term effects on real estate in Columbus, Indiana certainly.

This information was obtained from the National Association of Realtors

HUD: Tax Credit Can Be Used on Closing Costs
FHA-approved lenders received the go-ahead to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront, according to eagerly awaited guidance from the U.S. Department of Housing and Urban Development on so-called home buyer tax credit loans that was released today.

Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.

The loans can’t be used to cover the minimum 3.5 percent, senior HUD officials told reporters on a conference call Friday morning.

Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5 percent downpayment.

There remain many sources of assistance for buyers needing help with the 3.5 percent downpayment, including many state and local government instrumentalities and nonprofit lenders.

In addition, some state housing finance agencies have developed their own tax credit bridge loan programs, so buyers in states whose HFAs offer such programs can monetize the tax credit upfront to cover all or part of their downpayment. These programs are separate from what HUD announced today.

The first-time homebuyer tax credit was enacted last year–and improved upon earlier this year–to help encourage households to enter the housing market while interest rates are low and affordability is high. The credit is worth up to $8,000 and is available to households that haven’t owned a home in at least three years. The credit does not have to be repaid, and is fully reimbursable, so households can get their credit returned to them in the form of a payment.

Learn more about the credit, including how to apply for it this year even if you’ve already filed your taxes, at REALTOR.org.

Source: Robert Freedman, REALTOR® Magazine Online
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The Basics: 2009 First-Time Home Buyer Tax Credit

2009 Tax Credit for 1st Time Buyers

Bringing the Dream of Homeownership Within Reach

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.

Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.

Breaking news: Tax Credit Can Be Used on Closing Costs.

Who Qualifies?

First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Will the Credit Be?

The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:

The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.

The buyer’s income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.