1. Boston-Cambridge-Quincy, Mass.
2. Charlotte-Gastonia-Concord, N.C.-S.C.
3. Chicago-Naperville-Joliet, Ill.-Ind.-Wis.
4. Cincinnati-Middletown, Ohio-Ky.-Ind.
5. Denver-Aurora-Broomfield, Colo
6. Minneapolis-St. Paul-Bloomington, Minn.-Wis.
7. Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.
8. Portland-Vancouver-Beaverton, Ore.-Wash.
9. San Francisco-Oakland-Fremont, Calif.
10. Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.V.

Can you see yourself in here?

Active home search (median):

• Number of weeks searched: 10
• Number of homes seen: 10

First-Time vs. Repeat Buyers:

• First-time buyers: 41%
• Repeat buyers: 59%
• Median age of first-time buyers: 30
• Median age of repeat buyers: 47

Buyers who definitely would use same agent again: 70%

Actions taken as result of Internet home search: 

• Drove by/viewed a home: 77%
• Walked through a home viewed online: 63%
• Found agent used to search/buy home: 27%

Information sources used in home search: 

• Internet: 87%
• Real estate agent: 85%
• Yard sign: 62%
• Open house: 48%
• Newspaper ad: 47%
• Home book or magazine: 30%

Source: 2008 National Association of REALTORS(r) Profile of Home Buyers and Sellers

The Basics: Extended Home Buyer Tax Credit 2009/2010

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 new legislation that:

• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
• Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream. If you have specific questions or need additional information, please contact a tax professional or the Internal Revenue Service at 800-829-1040.

Who Qualifies for the Extended Credit?

• First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
  
• Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

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.

If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see: 2009 First-Time Home Buyer Tax Credit.

Which Properties Are Eligible?

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

How Much Is Available?

The maximum allowable credit for first-time home buyers is $8,000.

The maximum allowable credit for current homeowners is $6,500.

How is a Buyer's Credit Amount Determined?

Each home buyer's tax credit is determined by two additional factors:

1. The price of the home.
2. The buyer's income.

Price

Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income

Under the Extended Home Buyer Tax Credit, which is effective on November 7, 2009,  single buyers with incomes up to $125,000 and married couples with incomes up to $225,000---may receive the maximum tax credit.

These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you or your client purchased a home between January 1, 2009 and November 6, 2009, please see 2009 First-Time Home Buyer 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 $125,000 and $145,000 for single buyers and between $225,000 and $245,000 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 $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?

Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

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 this three-year period, the full amount credit will be recouped on the sale

Polybutylene is a type of plastic resin that was widely used in the manufacture of water supply piping from 1978 until 1995. During that time polybutylene pipes were often considered the pipes of the future because they were easy to install and cost less than other materials such as traditional copper piping. Polybutylene piping systems were used both for underground water mains and for interior water distribution. Most probably, polybutylene piping was installed in about one in every four or five homes built during the years in which the pipe was manufactured.

Does your home have polybutylene?

You should probably contact an expert or have a home inspection if your home was constructed from 1978 to 1995.

It's easy to see if you have copper pipes, but it might not be obvious if you have polybutylene pipes as opposed to PVC (polyvinyl-chloride). In exterior uses polybutylene underground water mains are usually blue, but may be gray or black. You can see your main Your water main near the shutoff valve is attached to the end of the water main. Or, you can check the pipes at the water meter on the city street, near the city water main. Experts suggest checking both ends of the pipe because there are cases where copper pipe enters the home, and poly pipe is at the water meter. This indicates that both pipes were used and connected somewhere underground.

Inside your home you can find polybutylene near the water heater, running across the ceiling in unfinished basements, and coming out of the walls to feed sinks and toilets. Warning: In some regions of the country plumbers used copper "stub outs" where the pipe exits a wall to feed a fixture, so seeing copper here does not mean that you do not have poly. If this all sounds a little confusing, contact an expert.

Will the Pipes Fail?

Steven Reiber, HDR Engineering, American Water Works Association Research Foundation writes, "A series of reports have suggested that increased use of choloramines accelerates corrosion and degradation of some metals and elastomers common to distribution plumbing and appurtenances. With regard to elastomers, the study showed that with few exceptions, solutions of chloramines (either monochloramine or dichloramine) produced greater material swelling, deeper and more dense surface cracking, a more rapid loss of elasticity, and greater loss of tensile strength than equivalent concentrations of free chlorine."

Throughout the 1980's lawsuits were filed complaining of allegedly defective manufacturing and defective installation causing hundreds of millions of dollars in damages. Although the manufacturers have never admitted that poly is defective, they have agreed to fund the Class Action settlement with an initial and minimum amount of $950 million. You'll have to contact the appropriate settlement claim company to find out if you qualify under this settlement.

The truth is that the scientific evidence of failures is a little shaky. Some people believe that oxidants in the public water supply, such as chlorine, react with the polybutylene piping and acetal fittings causing them to scale and flake and become brittle. If this is true, this causes micro-fractures. Micro-fractures reduce the basic structural integrity of the system. Thus, the pipes are at risk of becoming weak and may fail without warning causing damage to the building structure and personal property. On the other hand, some believe that other factors may also contribute to the failure of polybutylene systems, such as improper installation, but it is virtually impossible to detect installation problems throughout an entire system. But in the end it's about your tolerance for risk. If you have polybutylene pipes, you owe it to yourself to have nothing less than a risk assessment.

| Alexandria | Arlington | Falls Church | Fairfax County | City of Fairfax |

Although there are numerous benefits to owning a condo which include the lifestyle that such ownership entails; individuals living as single, young professionals who are just starting out, are arguably the most notable beneficiaries. The economic benefits that condo ownership provides for this particular demographic are two-fold. First, owning a condo is certainly less expensive than owning residential property insofar as the material upkeep and residual costs that homeownership necessitates. Second, most contemporary condo buildings offer a host of wide-ranging amenities that would command a considerable cost to an individual homeowner but which can be enjoyed instead at a significantly reduced rate to condo-owners who share jointly in the overall expense. These otherwise high-priced features and amenities usually include guarded and/or private, enclosed parking; 24-hour security and front desk staff; indoor and outdoor swimming pools; clubhouses; gated recreational facilities; etc., etc. (the list goes on and on!!). To that extent, condo ownership is therefore an ideal middle ground for the single, young professional who may very well aspire towards homeownership someday but who still remains a far cry away from white picket fences, two-car garages and 2.5 children.

In addition to the economically sound benefits that condo ownership provides, there are other elemental and lifestyle benefits that are associated with condominium ownership as well. Today, there are as many types of condominiums out there as there are types of people. Plainly put, the condominium marketplace has progressed with such rapidity that the variety and availability of choice in condo options is as original and unique as individual homes. Thusly, each type can satisfy the different needs of different individuals and therefore enhance and accommodate every kind of lifestyle. For example, there are distinctions between what are popularly thought of as 'condominium apartments' versus those that are known as 'condominium townhouses', which might have small differences from one another save for their structure regulations. There are also condominiums known as freeholds whereby a condo owner owns the plot of land as well as any structure on the land such as a house or townhouse.

Finally, for single or young professionals who are still growing into their grownup-ness, condo ownership signifies an increase in responsibility and a commitment to ownership. To be clear, condo living isn't like renting a single dwelling home or apartment and this is due to the dual nature that comes with owning any condo unit. Condominium owners hold ownership over their respective units but, additionally, each owner is also responsible for the operating costs and maintenance of the all of the shared elements on the property such as lobbies, passageways, and elevators. Here, owning a condo is effectively choosing to live within a community of other condo unit owners and thus, your neighbors. Each condominium complex is a unique community and each owner accepts the rules and regulations that are equally unique to condo living.

In a condominium complex, you also become part of a distinctive community where you as an individual become an integral part in the community as a whole; and this includes being an essential part of the decision making process. However, the advantages that come with shared communal facilities like the pool, clubhouse, and state-of-the-art gym are collectively a strong incentive to watch your neighbors' back.

In summation, owning a condo can provide both economically sensible and personally enjoyable benefits to any owner looking to buy but especially for individuals who are single, working and fairly young professionals who are new to the game but ready for more. In addition, because of the multiplicity and vast assortment of condominium units and styles that are available, condo ownership includes something for everyone. Lastly, although buying a condo certainly signifies a new level of maturation and grownup responsibility; the advantages to living in a shared community and to be able to engage as an honest and responsible neighbor will hopefully serve you both by keeping your pocketbook and your sense of self a little more full.

I'm going to buy a home, what's the process?

1. Go to your bank or lending institution to obtain pre-approval.  As part of this you will discover what amount they are willing to lend.  This is important both to know your budget and to ensure your offers are accepted.  Failure to pre-approve can ruin your chances for success later.
2. Sit down with a Realtor to see what's available, what meets your needs, and to discover the hidden dangers in home buying.
3. Once you have found a property you wish to buy you can proceed with an offer.  Your Realtor will provide invaluable assistance by performing a competitive market analysis, a snapshot of recent home sales and their amounts, to determine what will make an offer that gets you the best possible price, without having the seller walk away.
4. The seller reviews the offer, if rejected the seller may make a counteroffer.  This process can continue back and forth until both parties ratify and accept the offer making the offer a ratified contract.
5. A ratified contract then puts into motion a host of background tasks that proceed invisibly to ensure your new home is in good order:
   1. Home inspected for condition, damage and hidden surprises
   2. Appraisal to ensure the banks investment is covered by the value of the home
   3. Loan approval to secure funds for the purchase of your home
   4. Title Search to ensure the seller really has full right to sell your home
   5. Walk-through inspection to ensure nothing changes at the last minute with the property
      
6. At settlement the lender's money and the title transfer come together to deliver you ownership of your new home. 
   
7. Now it's time to move in!

About the Author ---  Ben Fornshell is a licensed real estate agent with Condo 1 Alexandria.  To learn more about available rentals and purchases in the area check out our free search.

National trends may be continuing to decline, but in Alexandria, Arlington, and nearby parts of Northern Virginia real estate is showing two signs of a comeback.  According to an MRIS Press Release: "Selling prices remain flat metro wide in the Greater Washington DC region, but the central jurisdictions---DC, Alexandria, and Arlington and Montgomery counties---continue to buck the trend."

John McClain, Senior Fellow at George Mason University's School of Public Policy, was quoted by them as saying, "Prices continue to rise in the central jurisdictions. They're in a much better price position due to their premium location."

The most dramatic is an increase in prices of home sales, but equally important is the shortening of time properties are on the market.  These two combine to reduce the available inventory available to buyers.  Waiting can be a shortcut to loss, so holding off in anticipation of falling prices can leave you kicking yourself for missing good deals.

About the Author ---  Ben Fornshell is a licensed real estate agent with Condo 1 of Alexandria.  To learn more about available rentals and purchases in the area check out our free search.

The answer depends upon what you want.  Aside from the obvious differences of having more green space with most single family homes, such as those in Belle View versus the tighter nit community potential in a hi-rise condominium or town-houses there are other, harder to see, but no less profound differences.

Single Family Home Benefits

• Absence of monthly homeowners or condo fees
• Less stringent rules and regulations
• No homeowners or condo association that can impose restrictions without your consent
  
• Fewer parking restrictions and fees
  

Condo and Town House Benefits

1. No need to save money to cover what condo fees will cover:
   1. Roof repairs/replacement
   2. Common area repairs
   3. Yard Maintenance
   4. Maintenance, paving, and plowing of the driveway, sidewalks, and curbs.
   5. Siding and gutter maintenance or repair
2. Some have controlled access
3. On site community amenities from club rooms to pools and exercise rooms
4. Many have improved public transit service, shuttles to metro service, etc

About the Author ---  Ben Fornshell is a licensed real estate agent with Condo 1 Alexandria.  To learn more about available rentals and purchases in the area check out our free search.

Licensed real estate agents can provide you with a competitive market analysis, this is based on:

1. Comparable properties in the area
2. Adjustments for differences in size and condition of the property
3. Differences based on location or the sale/rental date of the property

While real estate prices are fluid and certainly open to negotiation there are very real trends that affect not only the housing market as a whole, but localized areas as well.  This can include everything from:

• New construction
• Zoning changes
• Condemned properties
• Traffic pattern changes

It is important to remember when assessing property that there are three factors that will most influence the price

1. Location
2. Value of improvements (the home or unit)
   
3. Uniqueness of property
   

About the Author ---  Ben Fornshell is a licensed real estate agent with Condo 1 Alexandria.  To learn more about available rentals and purchases in the area check out our free search.

Here's a summary of the Home Buyer Tax Credit by NAR:

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.

FHA 203K Loan - Eligible Property

To be eligible for the FHA 203k mortgage loan, the property must be a one- to four-family dwelling that has been completed for at least one year. The number of units on the site must be acceptable according to local zoning requirements. All newly constructed units must be attached to the existing dwelling. Cooperative units are not eligible.

Homes that have been demolished, or will be razed as part of the rehabilitation work, are eligible provided some of the existing foundation system remains in place.

In addition to typical home improvement loan projects, the FHA 203-k mortgage loan program can be used to convert a one-family dwelling to a two-, three-, or four-family dwelling. An existing multi-unit dwelling could be decreased to a one- to four-family unit.

An existing house (or modular unit) on another site can be moved onto the mortgaged property; however, release of loan proceeds for the existing structure on the non-mortgaged property is not allowed until the new foundation has been properly inspected and the dwelling has been properly placed and secured to the new foundation.
health and safety of the occupants of the residential property; and (3) the rehabilitation funds will only be used for the residential functions of the dwelling and areas used to access the residential part of the property.

What is the minimum amount of repairs required on a FHA 203k home improvement loan?

There is a minimum $5,000 requirement of eligible home improvement loan projects on the existing structure of the property. Minor or cosmetic repairs may be included after meeting the first $5,000 worth of repairs.

What are some of the repairs that qualify for the first $5,000?

• Structural alterations and reconstruction: (Repair or replacement of structural damage, chimney repair, additions to the structure, installation of additional bath(s), skylights, finished attics and/or basements, repair of termite damage and the treatment against termites);
• Elimination of health and safety hazards;
• Changes for aesthetic appeal: (New siding, adding a dormer, covered porch, attached garage);
• Air Conditioning or replacement: (plumbing, heating, air conditioning and electrical systems);
• Installation of well, septic system or connection to public utilities;
• Roofing, Gutter Downspouts, Flooring, Tiling and carpeting;
• Major landscape and site improvement;
• Improvements to improve accessibility and functions for the disabled.

What are the qualifications to be able to obtain a FHA 203-k loan?

The qualifications requirements are the same as a typical FHA mortgage loan. The only additional item that the borrower needs is either enough cash reserved to pay for materials and labor until they are reimbursed through a draw, or a credit card with an adequate available balance. If there is to be a contractor involved, the contractor may choose to cover these costs.

The interest rate on a typical FHA 203k mortgage loan is a little higher than a standard FHA or conventional 30/15-year fixed-rate loan. The cash requirements are the same as an FHA loan, 3 percent to 5 percent, which is less than a typical conventional loan. There are a couple of additional fees which pertain to the construction aspects of the FHA 203k loan.

Can I pick my own contractor to do the work?

You may decide on your own contractor, and they should be brought into the process in the beginning stage of the loan process. Check out the credentials of the contractor thoroughly, making sure he is knowledgeable in all aspects of rehabilitation work.

The home improvements or repairs need not be made before moving into the property, depending on how extensive the repairs are and whether the house is habitable while the repairs are being made. The home improvement loan provides the ability to include up to 6 months of mortgage payments in the improvement escrow, should you not be able to occupy the property and have to pay rent during rehabilitation.

Can the FHA 203k loan be used to improve a condominium unit?

Yes, however, condominium rehabilitation is subject to the following conditions:

• Owner/occupant and qualified non-profit borrowers only;
• Rehabilitation is limited only to the interior of the unit. Mortgage proceeds are not to be used for the rehabilitation of exteriors or other areas which are the responsibility of the condominium association, except for the installation of firewalls in the attic for the unit;
• Only the lesser of five units per condominium association, or 25 percent of the total number of units, can be undergoing rehabilitation at any one time;
• The maximum mortgage amount cannot exceed 100 percent of after-improved value. After rehabilitation is complete, the individual buildings within the condominium must not contain more than four units.

By law, FHA 203k loans can only be used to rehabilitate units in one-to-four unit structures. However, this does not mean that the condominium project, as a whole, can only have four units or that all individual structures must be detached. Example: A project might consist of six buildings each containing four units, for a total of 24 units in the project and, thus, be eligible for an FHA 203k loan. Likewise, a project could contain a row of more than four attached townhouses and be eligible for a FHA 203k loan because HUD considers each townhouse as one structure, provided each unit is separated by a 1 1/2 hour firewall (from foundation up to the roof). Similar to a project with a condominium unit with a mortgage insured under Section 234(c) of the National Housing Act, the condominium project must be approved by HUD prior to the closing of any individual mortgages on the condominium units.

News from the IRS regarding the first-time home buyer tax credit:

Overview

First-time homebuyers may be able to take advantage of a tax credit for homes purchased in 2008 or 2009. The credit:

• Applies to purchases that close after April 8, 2008, and before Dec. 1, 2009.
• Applies only to homes used as a taxpayer's principal residence.
• Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar.
• Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

The credit is claimed using Form 5405.

For 2008 Home Purchases

The Housing and Economic Recovery Act of 2008 established a tax credit for first-time homebuyers that can be worth up to $7,500. For homes purchased in 2008, the credit is similar to a no-interest loan and must be repaid in 15 equal, annual installments beginning with the 2010 income tax year.

For 2009 Home Purchases

The American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made in 2009 before Dec. 1.

For home purchased in 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer's main residence within a three-year period following the purchase.

First-time homebuyers who purchase a home in 2009 can claim the credit on either a 2008 tax return, due April 15, 2009, or a 2009 tax return, due April 15, 2010. The credit may not be claimed before the closing date. But, if the closing occurs after April 15, 2009, a taxpayer can still claim it on a 2008 tax return by requesting an extension of time to file or by filing an amended return. News release 2009-27 has more information on these options.

Questions and Answers

More information is available in the question and answer section.

Buying your new house or condo involves a multitude of steps.  Having a real estate agent ensures that these steps go smoothly for you.  Having said that one of the most important aspects of your new home purchase is getting a loan secured.  Doing so in advance ensures benefits you in three ways:

1. You are searching for properties that will be within budget
2. Your offer carries extra weight because of your ready to buy status
3. The home buying process will go smoother and quicker through its final stages.

The value of these three together is quite great, and can make the difference between getting the home of your dreams and that one that "just got away".

About the Author
 Ben Fornshell is a licensed real estate agent with Condo 1 Alexandria.  To learn more about available rentals and purchases in the area check out our free search.

When you've finally picked out the condo, house or townhouse that interests you, it's time to write the offer. Together with proof of Earnest Money, and lender approval, I'll present the offer to the selling agent.

Presenting an offer is a little bit more involved than simply faxing paperwork to the listing agent and then waiting for a response. It is important to get the offer over as quickly as possible. Bargains (in any market) don't last long.  Then I call the listing agent to let them know the offer has been faxed. 

When appropriate, I follow up in the conversation by sharing appropriate details with the listing agent. For example:

I can give the selling agent some personal background about my clients and what they are looking for. I can explain why they are qualified to buy or how many homes my client has looked at. In some cases, it's appropriate to tell seller what the buyers appreciate about the home.

I sometimes provide the sellers with a comparative market analysis to show the sellers the rationale behind the offer we are making.

Of course, it's my job to explain and review all of the major details of the offer;

• contingent or non-contingent,
• inspections,
• date of closing, etc. 
• and of course, price. 

When necessary I discuss a brief timeline outlining the expected milestones between the offer and settlement.

About the Author --- Will Nesbitt is the principal broker of Will Nesbitt Realty and maintains Condo 1 Alexandria. Will specializes in condos, townhouses and single family residences in Alexandria, Arlington, Fairfax County, Crystal City, and Kingstowne. Will resides in Belle Haven Estates just outside Alexandria VA in Fairfax County.

Just in from the Department of Housing and Urban Development:

DONOVAN ANNOUNCES RECOVERY ACT'S HOMEBUYER TAX CREDIT CAN IMMEDIATELY HELP THOUSANDS OF FIRST-TIME HOMEBUYERS TO BUY A HOME
FHA plan will stimulate new home sales and help stabilize housing market

WASHINGTON - Speaking to the National Association of Home Builders Spring Board of Directors Meeting, U.S. Housing and Urban Development Secretary Shaun Donovan today announced that the Federal Housing Administration (FHA) will allow homebuyers to apply the Obama Administration's new $8,000 first-time homebuyer tax credit toward the purchase costs of a FHA-insured home. Donovan said that today's action will help stabilize the nation's housing market by stimulating home sales across the country.

The American Recovery and Reinvestment Act of 2009 offers homebuyers a tax credit of up to $8,000 for purchasing their first home. Families can only access this credit after filing their tax returns with the IRS. Today's announcement details FHA's rules allowing state Housing Finance Agencies and certain non-profits to 'monetize" up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments. Home buyers using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate. To read the FHA's new mortgagee letter, visit HUD's website.

"We believe this is a real win for everyone," said Donovan. "Today, the Obama Administration is taking another important step toward accelerating the recovery of the nation's housing market. Families will now be able to apply their anticipated tax credit toward their home purchase right away. At the same time we are putting safeguards in place to ensure that consumers will be protected from unscrupulous lenders. What we're doing today will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing."

Currently, borrowers applying for an FHA-insured mortgage are required to make a minimum 3.5 percent downpayment on the purchase of their home. Current law does not permit approved lenders to monetize the tax credit to meet the required 3.5 percent minimum down payment, but, under the terms of today's announcement, lenders can now monetize the tax credit for use as additional down payment, or for other closing costs, which can help achieve a lower interest rate. Buyers financing through state Housing Finance Agencies and certain non-profits will be able to use the tax credit for their downpayments via secondary financing provided by the HFA or non-profit. In addition to the borrower's own cash investment, FHA allows parents, employers and other governmental entities to contribute towards the downpayment. Today's action permits the first-time homebuyer's anticipated tax credit under the Recovery Act to be applied toward the family's home purchase right away. Unlike seller-funded down-payment assistance, which was a vehicle for abuse, this program will allow homebuyers to shop for the best home price and services using their anticipated tax credit.

According to estimates by the National Association of Home Builders, the Administration's homebuyer tax credit will stimulate 160,000 home sales across the nation - 101,000 of which will be first-time buyers who will receive the credit. Another 59,000 existing homeowners will be able to buy another home because a first-time buyer purchased their home. Given FHA's current market share, it's estimated that thousands of families will be able to purchase a home by allowing the anticipated tax credit to be applied toward their purchase together with an FHA-insured mortgage.

Homebuyers should beware of mortgage scams and carefully compare benefits and costs when seeking out tax credit monetization services. Programs will vary from organization to organization and borrowers should consider whether the services make sense for them, as well as what company offers the most suitable and affordable option.

For every FHA borrower who is assisted through the tax credit program, FHA will collect the name and employer identification number of the organization providing the service as well as associated fees and charges. FHA will use this information to track the business closely and will refer any questionable practices to the appropriate regulatory agencies, as necessary.

###

HUD is the nation's housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

Alexandria Appliance question: A resident of Beauregard Station called to ask me about what happens with the 

Appliances that are not removable, that is, they are part of the plumbing, ventilation, or structure of the home transfer with the sale of your condo.  This would include central air, water heaters, dishwashers, and similar appliances.  However appliances that are removable such as refrigerators, window A/C units, microwaves, etc, belong to the seller, unless stipulated otherwise in your purchase agreement.

About the Author
 Ben Fornshell is a licensed real estate agent with Condo 1 Alexandria.  To learn more about available rentals and purchases in the area check out our free search.

A short-sale occurs when the individual selling the property is selling the property for less than what they owe for the property. This means that after the seller agrees to the price, the lender must also agree to the price. Despite what anyone might try to tell you, that's the only difference between a short-sale and a normal sale. 

Unfortunately, there are many selling agents who work with the notion that there is a different set of rules for short-sales. These misguided agents are souring the market for everyone. (See Pitfalls of a Short Sale for more information.)

In Northern Virginia, below a certain price-point nearly half of the properties for sale are short-sales. In some neighborhoods, more than a third of the properties for sale are short-sales. So, short-sales are almost unavoidable. If you are considering purchasing a short-sale, you should learn more about the pitfalls and drama associated with short-sales and deal with an agent who has experience sorting through these complicated matters. Check here for tips for buying a short-sale.

About the Author --- Will Nesbitt is the principal broker of Will Nesbitt Realty and maintains Condo 1 Alexandria. Will specializes in condos, townhouses and single family residences in Alexandria, Arlington, Fairfax County, Crystal City, and Kingstowne. Will resides in Belle Haven Estates just outside Alexandria VA in Fairfax County.

Marketing is how you communicate to customers and potential customers what you're all about. How important is marketing?

If you've seen the Terminator then it should be apparent just how important marketing is. A good marketer never lies. A marketer selects the facts that are relevant and uses them to put his product in the best light.

One of the reasons a good realtor is an important asset when you're seeking a new home is because a knowledgeable realtor might have an understanding or information that might not be readily apparent to you. As in the Mary Poppins example, home buyers sometimes don't have a full picture of an area or a neighborhood and they are scared by aspects of a neighborhood that they should embrace rather than fear.

The truth is a skilled marketer can arrange facts to give a powerful impression that isn't really reflective of reality. But a good marketer only uses his powers for good and not for evil.

That is to say that a marketer should always consider the public's best interests when marketing a property. The trouble is not all marketers are good and many marketers are unskilled. That's why a realtor is so important when you're searching for a new home. As a trusted expert, the realtor knows where reality lies and can help you sort out marketing enticements from marketing facts.

To best market your home, condo or property in or near Alexandria VA , please contact me, Will Nesbitt . If you're buying a home, you need an expert who can show you what Northern Virginia is all about and who knows the neighborhoods of Northern Virginia .

I like experts who speak in plain English that's easy for a layman to understand. That's why Bob Murphy of Camelot Inspections is one of my favorite home inspectors and I've recommended him to many home buyers.

What is a Home Inspector?

I recently asked Bob to describe a home inspector to me. He said, "A home inspector is generalist with a trained eye. They are required to have some knowledge of every system in your home. Those systems include structure, plumbing, electrical, Heating and A/C, etc. The term 'house detective' is a very fitting description. We look for little clues that add up to a big picture called 'whole house phenomenon'."

People hire home inspectors because, "A buyer needs a home inspection to give them some knowledge of what they are buying before it becomes theirs. This includes knowledge of defects, upgrades, and maintenance cost."

As you might expect, Bob is pretty passionate about home inspection. He says, "The home inspection should be a required part of the transaction.  The appraisal,title search, and even termite inspection are required. Why?? To protect the lender!   So who is there to  protect the interest of the buyer?"

Alana, meet Bob

Recently, Alana H. was referred to me by a prior client and frankly she was one of the nicest clients I've ever had the honor of serving. After her purchase was negotiated she requested a home inspector so I recommended Bob's services. Alana was a first-time home buyer, so she wanted Bob to give her new home the once-over.

Bob told her, "Food for thought....You cannot buy a car and register it without an inspection. That is a matter of public safety.

"So why then is the public permitted to make the biggest purchase of their lives without an inspection?"

Bob meets the house

Bob has seen many immediate safety issues in all types of houses. Bob met Alana and I at her new townhouse in Reston VA. He immediately unpacked his gear and began to go to work. Like any good home inspector, Bob started with the exterior and checked out the house from the foundation to the roof. He checks downspouts, guttering and any potential problem or maintenance issues.

After getting inspecting the home's interior Bob goes to work on the interior. He pulls out the flashlight and pokes around in dark corners, in the attic and in the crawl space. As he works Bob shows the homeowner what he's doing and where potential problems can hide.

As part of his general practice Bob pulls the electrical box, checks the plumbing and applicances. He checks out major systems like the heating and air conditioning.

Bob is especially helpful with the first-time home buyer. As a first-time buyer, you'll find out what systems need attention. If you have and questions, ask Bob, he's there to help.

When all is said and done, Bob will prepare a report tailored to your home, so you'll know exactly where you stand. He supplies a helpful book with tips and answers to some of the questions you might not even remember to ask.

It's always good to learn that the home is in good shape! Bob is available to inspect houses, townhouses or single family homes in Maryland or Northern Virginia.

About the Author --- Will Nesbitt is the principal broker of Will Nesbitt Realty and maintains Condo 1 Alexandria. Will specializes in condos, townhouses and single family residences in Alexandria, Arlington, Fairfax County, Crystal City, and Kingstowne. Will resides in Belle Haven Estates just outside Alexandria VA in Fairfax County.

Check out this important clip from the Wall Street Journal. Is now the time to buy? For first time home buyers, now may be the best time ever. With mortgage rates at record lows and the $8,000 first-time home-buyer credit set to expire Nov. 30, Ronald Phipps, first vice president of the National Association of Realtors, explains to Kelsey Hubbard why now is a good time to enter the housing market. Of course, you individual situation is the most important thing, but when you consider the inventory of homes available and you tax credit, it might be the perfect time. According to Phipps the average home owner is 38 times wealthier than the average renter. When you look at the long term that is another compelling reason to consider a home purchase now.

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