New Information from National Assoc. of Realtors on Homebuyer Tax Credit

The following is information from the National Association of Realtors on the New homebuyer tax credit legislation passed last week. I am passing it along -
NAR Frequently Asked Questions
Homebuyer Tax Credit Changes
National Association of REALTORS® Government Affairs Division
500 New Jersey Avenue, NW, Washington DC, 20001
Here are some of the most frequently asked questions on the changes to the Homebuyer Tax Credit
Question: Existing homeowner credit: Must the new house cost more than the old house?
Answer: No. Thus, for example, individuals who move from a high cost area to a lower cost area who
meet all eligibility requirements will qualify for the $6500 credit.
Question: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a
new home. I have lived in my current home for more than 5 consecutive years and
am within the new income limits. I will go to settlement on November 20. If
President Obama has signed the bill by the time I go to settlement, will I qualify for
the new $6500 tax credit?
Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment
(when the bill is signed). There is no reference to the date of contract for the new credit. The
provision looks solely to the date of purchase, which is generally the date of settlement.
Question: I am a firsttime
homebuyer but was not within the prior income limits at the time I
entered into my contract to purchase on October 30, 2009. I will be covered,
however, by the new income limits. If the new rules have been signed into law by the
time I go to settlement, will I be eligible for a credit?
Answer: Yes. The new income limitations go into effect as soon as the President has signed the bill.
The income limit and other eligibility rules will look to your status as of the date of purchase,
which is the settlement date. So if the new rules have been signed when you go to settlement,
you should be eligible for the credit (or a portion of the credit if you're within the phaseout
range).
Question: I am an eligible existing homeowner. I have a fair amount of equity in my home. I
have found a home with a nonnegotiable
price of $825,000. Will I be able to use any
of the $6500 tax credit?
Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount
above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an
absolute ceiling.
Question: I owned my home for 10 years, but sold it two years ago year and have been renting
since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the
other eligibility tests?
Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you
will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000
and lived there until 2008 when he got a divorce. Whether John has been renting or bought in
the interim, he WOULD INDEED be eligible for the credit because he owned a home and
occupied it as his principal residence for 5 consecutive years out of the last 8 years. The
keyword here is "consecutive." As long as he lived in that house for 5 years straight what he
did since 3 years doesn't impact eligibility.
Question: I am an eligible firsttime
homebuyer. I entered into a contract to purchase on
November 1, 2009. Do I have to go to closing before December 1? How does the
extension date affect me?
Answer: You do not have to close before December 1. Once the legislation has been signed, it will be as
if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30
(or July 1, worst case), the purchaser will be eligible for the credit

Letter from President of the National Assoc. of Realtors regarding proposed mortgage interest deduction changes

I claim no authorship or ownership of the following information. It is a letter from the President of the National Association of Realtors. I am posting it on my blog for informational purposes only.
Christine


Dear Fellow REALTOR®,
You may have seen news reports about President Obama’s budget proposal that was released today at 11:30 AM Eastern Time. A small section of the sweeping budget plan has the potential to become a major impediment to a recovery in real estate markets across the nation. NAR is 100% opposed to the provision that modifies the Mortgage Interest Deduction and is prepared to use its formidable array of resources against its enactment.
As currently drafted, the plan changes the Mortgage Interest Deduction by reducing the amount of mortgage deductibility on families earning over $250,000. This proposed change in the Mortgage Interest Deduction will result in further erosion of home prices and home values. If this proposal is enacted it will lead to a new round of price depreciation, will cause greater distress on the balance sheets of banks as the collateral value of mortgage backed securities declines. A second credit crisis could emerge before the first one is resolved.
As you read this NAR is launching a multiphase plan of action to eliminate this provision from the budget plan. In the next 24 hours, NAR will be expressing our concerns directly to President Obama, to all members of the United States House of Representatives and the Senate, placing advertisements in the publications read by Washington, DC decision makers. Additionally, NAR will be forming a coalition with other groups affected by this proposal.
This communication is the first part of our response, we will continue to update you as the situation and events warrant.
Sincerely,Charles McMillan, CIPS, GRI
2009 NAR President

INFORMATION FROM THE TEXAS ASSOC. OF REALTORS®

The following information is from the Texas Association of REALTORS® website intended to educate Texas consumers about the Texas real estate market. It is my intention to share this information with those of you who read my blog - I do not claim authorship or ownership of this material in any way; it was created and compiled by the Texas Association of REALTORS®


Quick facts for Texas REALTORS® to share with consumers

With so many misperceptions created by the national news about the real estate market, you can help Texas consumers understand what’s really going on in your market. Explaining that real estate is local and giving consumers facts about Texas and your area will help alleviate their concerns.

Why Texas is different

Strong, diverse economy:
Texas is strong in industries that are still growing (such as professional & business services, education & health services, government) and has the second largest economy in the nation by GDP according to the U.S. Bureau of Economic Analysis.

Steady job growth:
According to the U.S. Bureau of Labor and Statistics, Texas added 153,700 jobs (1.5% increase in employment) from December 2007 to December 2008, while during the same time the national unemployment rate rose 2.3%.

Top state to relocate:
According to Allied Van Lines’ 41st Annual Magnet States Report, Texas is the No. 1 destination state for residential relocations for the 4th year in a row. New data from the U.S. Census Bureau confirms that Texas gained more residents (484,000) between July 2007 and July 2008 than any other state.

Misperceptions created by national news

What they hear......Median sales prices are down as much as 41%
What they don't hear........That 41% number is from California (Nov. 2008 compared to Nov. 2007). Median sales price statewide is flat in Texas for the entire year 2008 compared to 2007*

Average sales prices dropped $115,000 in one year
That number is from Arizona. Average sales price in Texas is unchanged for the entire year 2008 compared to 2007*

Home prices are the lowest in six years and it takes three quarters of a year to sell a house (Reuters, Jan. 2009)
Over the last six years, home prices in Texas have increased 9% in value (median home prices from Dec. 2002 to Dec. 2008) and in that time have averaged less than 7 months, sometimes much less, to sell.

*Source for Texas numbers: Real Estate Center at Texas A&M University

Statewide facts

· Texas real estate remains a strong long-term investment. The average home sales price in Texas has increased $15,600 from December 2004 to December 2008; over the same four years, median sales prices (half of all homes sold are priced higher and half are prices lower) increased $8,600.

· Texas has steady home value appreciation. Sales prices in places like California, Florida, Nevada, and Arizona have had rapid rises and drops in values, while Texas prices have remained relatively steady.

· Texas homes are more affordable. Using a ratio of average family income compared to income required to qualify for a loan, the Housing Affordability Index indicates the proportion of the population that can afford to buy the average home sold during a certain time period. The higher the index, the more affordable the housing in that area.

· Most borrowers are approved. According to a report by the National Association of REALTORS®, 91% of buyers in Texas were NOT rejected by lenders last year.

· Great rates are available. Mortgage loan rates are the lowest they have been in decades.


· First time buyer incentives. First time home buyers can still qualify for a $7,500 tax credit.

New Articles about Amarillo, Texas Neighborhoods

I am currently doing the research to do my next article on another interesting Amarillo, Texas neighborhood. I will be writing on another historic neighborhood and expect to have the article completed soon. Also, my interest has been revived by a chance meeting with a great older couple, to do an extensive article on Pleasant Valley soon. I have a great deal of research done on that older part of north Amarillo, but have been sidetracked working on articles about neighborhoods closer to the center of Amarillo. I continue to be drawn back toward recording the history of Pleasant Valley because of the wonderful stories I have been hearing from some of the folks whose parents settled the area and from older folks who have lived in Pleasant Valley since the 1940's and 1950's. Great stuff!!!! Those of you who read my articles here and in the Amarillo Uptown know I do not post daily or weekly but use this forum as an outlet for more detailed writings about the great neighborhoods in Amarillo. Thanks for reading my work and looking forward to new articles.
Best Regards,
Christine

Bivins Addition - Original Version by Christine Wyly

The Bivins Addition subdivision is one of the most diverse neighborhoods in Amarillo, Texas. One of the great joys of my real estate business is the privilege of visiting neighborhoods I love. The Bivins Addition is one of those neighborhoods. Its beauty and my love of the city’s history make trips to the Bivins area of Amarillo a delightful outing rather than a workday chore. The Amarillo Association of Realtors generally defines the “Bivins Area” as bounded by Georgia Street on the west, Interstate 40 on the South, S.W. 8th (or the old Rock Island Railroad tracks) on the north, and Washington (Adams) on the East. The area is actually made up of several additions according to plat maps and the Potter-Randall Appraisal District. Those additions include the original Bivins Addition which was amended and enlarged over the years and Bivins Estate. There are others on the east side of the development such as the John Dees Addition, the Madden Annex, and the Academy Courts Addition.The Bivins Addition was the first subdivision in Amarillo to extend toward the southwest, a trend that continues to the present. The Bivins Addition was platted in 1926. It was named after Texas Panhandle pioneer Lee Bivins who was a prominent area rancher and businessman at the time. Betty Teel Bivins Lovell who was the granddaughter-in-law of Lee Bivins still lived in the neighborhood in a stately home that was built in the early 1930’s until her death just recently. The area had previously been the home of Bivins Field, Amarillo’s first airport, where Amarillo’s first flying service owned by H. E. Fuqua and Lee Bivins was headquartered. The Bivins Field hangar had been located at 15th and Crockett and was moved when the airport was relocated to the northeast side of the city. The east and west runways became the east and west lanes of Julian Boulevard and the “Y” on Julian Boulevard is where the “Bivins” strip crossed. The tips of the “Y” that were the ends of the runway are the location of the historic gates at two entrances to the Bivins neighborhood. One of those gates is located at S.W. 10th and Travis St. and the other is located at S.W. 15th and Travis St.The Bivins neighborhood is anchored by St. Andrews Episcopal Church founded by Lee and Betty Bivins on the southwest of the addition and St. Mary’s Catholic Church on the northeast boundary. Julian Boulevard, named after the son of Lee and Mary E. Bivins runs through the heart of the Bivins Addition. The area is characterized by tree lined streets and a park-like atmosphere where the chimes from St. Andrews Episcopal Church and First Church of Christ, Scientist.can be heard. The architectural styles in the neighborhood vary from traditional, ranch, English Tudor, and cottage style. Those styles, along with the spacious townhomes at Bryan Place provide a delightful, eclectic mixture of residences that offer something for everyone. The upper end, higher priced homes tend to be located in the heart of Bivins on Julian Boulevard, on the streets adjacent to Julian Boulevard, and the north and south streets extending from Julian Boulevard toward Interstate 40. Homes in lower price ranges occupied by first time homebuyers and folks who rent or lease are generally located east of Travis St. and west of Washington St. The residences north of S.W. 10th St. and south of S.W. 8th St. also are somewhat smaller and are home to smaller families and first time homebuyers.Home prices tend to be lower for the traditional, square tract type houses, moderate for cottage and ranch style homes, and higher for the English Tudor and neoclassical style homes. For a better understanding of styles, a resource for residential styles can be accessed through the christinewyly.com website. According to the Amarillo Association of Realtors Multiple Listing Service, sales statistics for residences sold in the “Bivins Area” show the average sales price of residences in the last year to be $95,866 and the median sales price to be $84,850. The type of closed and active listings in the last 12 months since October 1, 2006 range from $25,000 to $30, 000 one bedroom traditional style fixer-uppers on the east side of the development to four to five bedroom upper end homes listed for $375,000 to $400,000 along Julian Boulevard. The majority of homes listed and sold in the neighborhood are those in the $95,000 to $135, 000 price range. First time homebuyers are finding that homes in that moderate price range are good bargains because some are charming older, roomy, well built homes that simply need updating.I love the Bivins Addition for it’s beauty, it’s charm, and it’s central location. The neighborhood is close to Wolflin Villlage shopping center, downtown Amarillo, Interstate 40, Interstate 27, restaurants, banks, and so much more. The history of the neighborhood intrigues me, speaks to my curiosity of how this city came to be and how it has survived. Its diversity tells the story of what makes Amarillo the city that it is.Please comment – post your thoughts about this great neighborhood or post comments regarding my observations. While researching for this essay, I found myself so immersed in the history of just this one Amarillo neighborhood, I am very much looking forward to continuing to the next neighborhood essay. In the mean time, let me hear from you.Sources for this article are the Amarillo Association of Realtors Multiple Listing Service, the National Association of Realtors, The Handbook of Texas Online, and the Amarillo Globe News.

Potential Real Estate Deed Scan Circulating in Amarillo, Texas

The following is information received from Chip Staniswalis at Chicago Title in Amarillo, Texas. I am passing on this information with his written permission.
Best Regards,
Christine

A company named National Deed Service is (via the USPO) advising Amarillo residents to have an official or certified copy of the deed to their house on hand to verify the title to the property was transferred into their name. They will do this for the incredible price of $59.50.

You may remember a similar scam from a couple of years ago by a company who offered to file a homeowner's "Homestead" exemption with the Potter/Randall County Appraisal District for a similar fee. As you know, there is no charge for this homestead service by PRAD.

Anyway, after a property is "closed" with an Amarillo Title company, the deed is sent to the courthouse for recording with instructions to return the original deed to the owner. So, the owner should be in possession of the deed already.

In the event a homeowner needs a copy of the deed it can easily be obtained at the courthouse (by anyone, since it is a public document) for a nominal fee of $1.00 (in either Potter or Randall County). If you want a "certified" copy from the clerk (which is as good as the original), then there is an additional $5.00 charge.

Thought you might be interested in this confidence trick. If you have any questions, please call any Chicago Title office about how we can assist the public in obtaining deed information at little or no cost.

Thanks.

Chip Staniswalis
Chicago Title

Country & Horse Properties in Amarillo & Canyon Texas

NEW LISTINGS IN THE COUNTRY!

THIS ONE IS SOLD, SOLD, SOLD, SOLD!!!!!!!!
6705 Susie Rd, Amarillo, Texas 79118
Kent Meyer and Christine Wyly just listed this EXCEPTIONAL HOME in the country south of Amarillo. It is a beautifully kept manufactured home with parklike grounds surrounding the house w/ Kentucky 31 fescue grass & mature trees. It sits on one acre, is totally fenced with an additional privacy fence at house. The house has upgraded tile, and marble countertops. It has new exterior paint as of 6/08 and well pump & motor as of 5/08. Additionally there is an insulated 24X40 shop with a 1 stall door & 2 stall door. The property is all electric; gas lines are present but not in use. The price on this wonderful country home is only $120,000!!

8000 Raburn Ln, Canyon, Texas 79015
Lots of room for the big house on the prairie! 1 acre - prime building site in new home construction area in Lake Ridge between Canyon, Texas and Amarillo, Texas. This 1 acre tract sits at the edge of a cul-de-sac - not much traffic! Please drive out and take a look, then give us a call; let's make a deal! Price - $22,500.

14601 Ortega Rd., Amarillo, TX 79118
Kent Meyer and Christine Wyly just listed a horse property south of Amarillo consisting of 5 acres & nice updated manufactured home that qualifies to go FHA. Outbuildings include horse stalls/tack room, fencing, mature trees & storm cellar. The home has hot water heater, dishwasher, stove, fridge, microwave all less than one year old - that all convey to the new owner with the sale of the property. The home has new carpet, tile, cabinets, countertops, & new inside components of htg-a/c unit. Also the home has a 20' X 30' deck with 8 person hot tub with 63 jets & a stereo system. House, outbuildings, and 5 acres all priced at just $120,000.