Home Buying
How to choose and finance a new home.
What is an ABR?
The ABR acronym is short for Accredited Buyer Representative. The Accredited Buyer’s Representative (ABR®) designation is designed for real estate buyer agents who focus on working directly with buyer-clients. 
When you work with an Accredited Buyer’s Representative you know that your rights are represented by a professional agent who is trained and experienced in handling the needs of buyers. There are four requirements which a real estate agent must meet to attain and use the ABR® designation:
- Previous and documented experience representing the needs of buyers and experience actually closing real estate sales.
- Successful completion the Accredited Buyer’s Representative (ABR®) Designation Course.
- Successful completion of one of the ABR® elective courses.
- Membership in good standing in the Real Estate Buyer’s Agent Council (REBAC) and the National Association of REALTORS®.
Julie is on the rooftop deck at the Waterview in Rosslyn VA. Julie is an Accredited Buyer's Representative.
Shopping Tips for Buying a Home Warranty
Home warranties can be attractive to home owners or buyers who are looking at purchasing a property. These service contracts can cover all of a home’s major systems, such as the furnace or air conditioner, and will cover needed repairs if the appliance breaks or damaged.
Some sellers are offering a home warranty to try to lure buyers.
But not all home warranties are the same. Experts say you should carefully weigh costs, policy allowances, and customer feedback before making a decision so that you ensure you’re getting the best deal. Home warranties cost about $250 to $500 a year.
Here are some more tips from experts in shopping for a home warranty:
- Find customer reviews. Web sites, such as homewarrantyreviews.com, provide reviews of home warranty companies. You also might check how each company is rated with your local Better Business Bureau.
- Check for extra fees. Will you have to pay a fee for service calls?
- Check the coverage allowance. Are there any exclusions to coverage? Will the allowance cover the entire cost of a broken appliance or just some of it? For example, if you have older appliances and mechanicals, will the policy cover the full cost of replacing it or just the depreciated value? If the policy only covers the depreciated value when a 20-year-old furnace dies, for example, the reimbursement may not be enough to buy a new one. Also, verify what appliances are all included in the coverage. Some companies will allow you to add coverage for swimming pools, while others won’t.
typical home in Belle Haven Estates
“The biggest thing is awareness of what the exclusions are,” Greg McBride, a senior financial analyst at Bankrate.com, told the Chicago Tribune. “The mere presence of a warranty, by nature, tends to have exclusions. Being aware of that can aid in the decision-making process.”
Source: “When Home Warranties Are Worth It,” Chicago Tribune (Feb. 8, 2011)
Real Estate Is ‘as Affordable as it Gets’
Alexandria is a vibrant city in its own right and a source of culture and activities for our neighborhood.
In fact, housing affordability by the end of September had returned to or fallen below the average reached between 1989-2003 in 47 of the 74 housing markets that Moody Analytics tracked.
In September 2010, the ratio of home prices to annual household income had fallen to 1.6–below the historical average of 1.9 between 1989 and 2003. The ratio peaked in 2005 at 2.3.
“Based on incomes, this is as affordable as it gets,” says Mark Zandi, chief economist at Moody’s Analytics. “If you can get a loan, these are pretty good times to buy.”
Some of the most undervalued markets include Cleveland, Detroit, Las Vegas, Atlanta, and Phoenix.
But those cities also are facing high rates of foreclosures and more borrowers defaulting on their mortgages that could decrease values further in those cities before they start to improve, Zandi says.
In Phoenix, for example, “it’s become cheaper to buy than to rent,” Jon Mirmelli, a real estate investor in Scottsdale, Ariz., who rents out foreclosed homes, told The Wall Street Journal. “But the question is: can you qualify for a loan?”
Source: “Home Affordability Returns to Pre-Bubble Levels,” The Wall Street Journal Online (Feb. 8, 2011)
Home Ownership Offers Plenty of Tax Benefits
Carlyle Towers Bedroom
While renting offers zero tax breaks, buying a home offers several tax benefits that can make homeownership more affordable. Real estate professionals need to be careful in providing detailed tax advice to clients to avoid lawsuits, but you can ensure clients have the information they need to understand the all of the tax benefits of home ownership.
The following is a few of the tax benefits to home ownership, according to Stephen Fishman, an author and lawyer who specializes in small business, tax and intellectual property law.
- Home mortgage interest deduction: Home owners can take an itemized deduction on interest paid on a mortgage or mortgages of up to $1 million for a principal residence and/or second home. This deduction could potentially reduce the cost of borrowing by one-third or more.
- Property tax deduction: Home owners can deduct from their federal income taxes the state and local property taxes that you pay on the home.
- Deductible home buying expenses: Several closing costs in a home purchase are also deductible, such as loan origination fees (points), prorated interest on a new loan, and prorated property taxes paid at settlement.
- $250,000/$500,000 home-sale exclusion: Home owners who have lived in their home for two of the prior five years prior to its sale do not have to pay income tax on the majority of their profit — $250,000 for single home owners and $500,000 for married homeowners who file jointly.
- 14 days of free rental income: Home owners can rent the home up to 14 days during the year and pay no tax at all on the rental income.
Source: “The Tax Benefits of Homeownership,” Inman News (Feb. 4, 2011)
