Discover Orlando Homes

WASHINGTON – Feb. 17, 2010 – The National Association of Realtors® (NAR) launched HouseLogic, a new consumer website that covers all aspects of homeownership. According to NAR, HouseLogic was created to help homeowners make smart decisions and take responsible actions to maintain, protect and increase the value of their homes.

“HouseLogic will engage and involve consumers throughout the lifecycle of homeownership,” says NAR President Vicki Cox Golder. “It makes sense that, as the first, best source for real estate information, NAR should collaborate with today’s consumers to help them make the most out of owning a home. HouseLogic will help us do that.”

The free website helps homeowners plan and organize their home projects and provides timely articles and news; home improvement advice and how-to’s; and information about taxes, home finances and insurance.

“Unlike other homeownership websites, HouseLogic helps consumers view their home through a financial lens and make smart, informed home improvement investment decisions,” says Golder. “Families can set goals for saving money on their home or increasing its value, and easily track the progress they are making on those goals.

Users who choose to register can save information, create to-do lists and set project reminders. The website can also be customized for individual homeowners depending on how handy or ambitious they are regarding home projects; how much money they want to spend or save; where they live; and their priorities, such as increasing the value of their home or improving their neighborhood.

HouseLogic also helps homeowners who want to get actively engaged in neighborhood and homeownership issues. The site provides users with the tools and know-how to affect change, like establishing a neighborhood watch program, building a community playground, or participating in city or county planning efforts.

“For more than 100 years, Realtors have been bringing America home,” says Golder. “HouseLogic takes owning a home to the next level.”

Visit HouseLogic at www.houselogic.com.

© 2010 Florida Realtors®

Hope to see you there!

If you have questions about the tax credits, it is best to speak to your accountant or CPA.  However, here are some clarifications or summary points from an IRS spokesperson.

• The credits are available only to buyers purchasing primary residences. The IRS defines this has the residence where you spend most of your time.

• There are two credits available. One is for first-time buyers, or those who have not owned a home in the past three years. The maximum for this credit is $8,000 and, unlike a previous credit, this one does not have to be paid back. It applies to purchases made this year between Jan. 1 and April 30.

• The government broadened the credit in November to include some buyers who already own houses. Those buyers are eligible for a credit worth up to $6,500 for purchases made between Nov. 7 and April 30. In order to qualify, the buyer must have owned a primary residence for at least five consecutive years out of the past eight years. This credit also does not need to be paid back.

• There are income and price requirements. If the home was purchased after Nov. 6, it can cost no more than $800,000. Also, if purchased after that date, individuals cannot earn more than $125,000 and married couples filing jointly cannot earn more than $225,000.

• You don’t have to wait until 2010 to claim your credit, even if you buy this year. Purchase a home before the April 30 deadline and the credit can be claimed on this year’s taxes.

• If you’re claiming the credit, a paper filing is necessary. Only taxpayers not claiming the credit can file electronically. Dobzinski said buyers can still use electronic forms, but must print them out and mail them in, along with form 5405.

• Unlike last year, buyers claiming the credit must prove they are eligible. This is because some people filed for the credit last year, even though they had not purchased a home. You’ll need to send the HUD settlement statement along with the tax form. If you’re claiming the longtime owner credit, also include proof, such as copies of mortgage interest statements, property tax records or homeowner’s insurance records.

• Keep in mind that the credit is for your primary home. If you decide to rent or sell the home within three years, the credit must be repaid.

• Buyers claiming the credit will have to wait longer than usual to get the credit because of the need to file by paper. Expect to wait four to eight weeks, instead of the typical two weeks when filing electronically.

Form 5405 is needed to file for your credit and it is on the IRS website as well as instuctions on how to complete it.

You will see that I got to put my Microsoft Excel skills to the challenge to create this post.  Below you will see a few charts showing 2009 inventory, 2009 Average Sales Price, and 2008 vs 2009 monthly sales numbers.    Orlando area Realtors sold 51.83 percent more homes in December 2009 than December 2008, bringing year-to-date Orlando area sales to 59.31 percent above 2008. In addition, pending sales (homes with purchase contracts but awaiting completion of the closing process) finished out the year a whopping 150.02 percent above 2008.

I expect to see sales continue on a strong pace as buyers take advantage of the historically low interest rates and the tax credits available.

If you have any questions about these statistics, or would like information not shown, just email me!

The FHA announced some new changes on Wednesday which should strengthen the FHA’s reserves in the face of rising foreclosures.  The FHA is playing a greater role in the mortgage market, insuring about 30 percent of new loans, up from 3 percent in 2007. Growing defaults have cut its reserves below the level mandated by Congress, leading to fears that it might need a taxpayer bailout.

FHA-insured mortgages are attractive to borrowers because down payments are only 3.5 percent.  That down payment won’t change under the new policies the FHA announced  that will take effect in spring or early summer.

• Borrowers must  have a minimum credit score of 580 to qualify for a 3.5 percent down payment. Borrowers with lower scores will have to make at least a 10 percent down payment.

• Allowable seller concessions will be reduced from 6 percent to 3 percent of the sale price. The change is intended to discourage inflated appraisals.

• Borrowers will have an increase in the upfront mortgage insurance premium.  It will be 2.25 percent of the total loan amount, up from 1.75 percent now.