Weather is still cold but home buyers have gotten out of their hibernation. Over the weekend, in the MLS, 22 properties went under contract. That is a bigger number than I have seen in a long time.
One of them is our listing in Hallsville, $191500. There were almost a bidding war on that! And in the beginning I thought it might be hard to sell.
Paul and I both had open houses. The house I was in was a $172000 3bed 2 bath slab in SW, 10 parties came, that was fun!
Paul was in a ranch w/o in SW, priced $225000. He had 6 parties coming through. Lots of people looking now.
Monday, February 23, 2009
Friday, February 20, 2009
Buying Foreclosed Properties
I had 4 opportunities to work with buyers buying foreclosed properties in 2008.
Foreclosed properties can be good deals for the buyer, but not always. I have seen foreclosed properties listed for higher price than normal market price. The owner of foreclosed properties are often not in town, and do not know the local market well. They normally use a local real estate agent, but not always. Currently in Columbia market, there are foreclosed properties listed by real estate agencies located 2 hours away. A side note, there are rental properties managed by out of town management companies. Why the landlord decide to use someone 2 hours away to manage the property is baffling to me.
In any case, the buyers may get a good deal buying a foreclosed property, but buyer also take on some risk.
Normally the seller would not repair anything wrong that is found by the inspector. Although after inspection, the buyer can back out of the contract, but at that point, buyer has already paid for the inspection. So that is an expense. Also, if the property pass inspection, buyer applying for loans still need to get an appraisal and pay for it.
If the appraisal price is lower than contract price, again, buyer can back out, but by now buyer has spent more money.
It is important the buyer use an agent or do detail research on their own to find out whether the previous owner (before foreclosure) owed anything else on the property.
In Jan. one of my buyer bought a foreclosed property and we found there were a $20000+ tax lien on it. The seller paid for it, otherwise, the buyer would not have bought the house!
In conclusion, buying foreclosed property could be a good deal, but the buyer and agent have to be extra careful.
Foreclosed properties can be good deals for the buyer, but not always. I have seen foreclosed properties listed for higher price than normal market price. The owner of foreclosed properties are often not in town, and do not know the local market well. They normally use a local real estate agent, but not always. Currently in Columbia market, there are foreclosed properties listed by real estate agencies located 2 hours away. A side note, there are rental properties managed by out of town management companies. Why the landlord decide to use someone 2 hours away to manage the property is baffling to me.
In any case, the buyers may get a good deal buying a foreclosed property, but buyer also take on some risk.
Normally the seller would not repair anything wrong that is found by the inspector. Although after inspection, the buyer can back out of the contract, but at that point, buyer has already paid for the inspection. So that is an expense. Also, if the property pass inspection, buyer applying for loans still need to get an appraisal and pay for it.
If the appraisal price is lower than contract price, again, buyer can back out, but by now buyer has spent more money.
It is important the buyer use an agent or do detail research on their own to find out whether the previous owner (before foreclosure) owed anything else on the property.
In Jan. one of my buyer bought a foreclosed property and we found there were a $20000+ tax lien on it. The seller paid for it, otherwise, the buyer would not have bought the house!
In conclusion, buying foreclosed property could be a good deal, but the buyer and agent have to be extra careful.
Full price offer!
One of Paul's listing got a full price offer. They may even get 2 full price offer. It's a 5 acre land with a 5 yr old house. House is not big or fancy, but there are also 2 large workshop/barn. A lot of men's dream place, I guess.
买房购车可退税 耆老额外有津贴
http://gb.news.sina.com/us/singtao/104-103-102-102/2009-02-14/06273636631.html
国会13日通过的7870亿元经济刺激案，将从多个方面惠及普通百姓，从子女上学，购买新车，购置第一处住房，到改善住宅能效，纳税人都能享受到某种程度的税务优惠。
国会13日通过的7870亿元经济刺激案，将从多个方面惠及普通百姓，从子女上学，购买新车，购置第一处住房，到改善住宅能效，纳税人都能享受到某种程度的税务优惠。
不过振市案通过后，美国政府2009年赤字额将达1.6万亿元，历年总赤字额则高达10.7万亿元，令全美人均负债3.6万元。子孙后代将面临税率增加和公共服务减少的境遇。以下为该案主要内容，所有条款有效期均为两年。
薪资红包6月起发
自2009年6月起，每位在职个人每周薪酬支票可少扣税约13元，截至年底共退税400元，夫妻可享受退税800元。2010全年，个人每周退 税额降至约7.7元。年收入低于7.5万元的个人和不足15万元的夫妻可享受全额退税，年收入低于10万元的个人和不足20万元的夫妻可获部分退税。不缴 纳联邦收入税的特困家庭也有资格申请薪酬退税。
约2000万中高收入纳税人今年可免缴最低替代税（AMT）。
老弱病残福利扩大
粮食券福利上调13.6%，因此四口之家可在每月588元基础上额外获发80元。
领取社安补助金的穷人、老人和残疾人，以及退休人员可一次性额外享受250元津贴。
2009年和2010年申请每名子女1000元退税的门槛降至年收入3000元，因此不缴纳联邦收入税的特困家庭也有资格申请。根据扩大的薪酬 退税政策（Earned Income Tax Credit），有3个或以上子女的贫困家庭可享受的退税比例从四成上调至45%。
首次购屋退税8000元
在2009年1月1日至12月1日之间的首次购房者可享受8000元退税，只要3年内不转售房屋，则不需归还此笔退税。年收入低于7.5万元的 个人和不足15万元的夫妻可享受全额退税。但在2008年4月9日至12月31日的首次购房者，仍按原规定执行，只能享受房价10%退税额度，上限仍为 7500元，且须在15年内还清。
购置节能门窗、炉灶和空调的家庭，可享受採购成本3成的退税，退税上限为1500元。
失业人士不失健保
失业者可额外领取20周失业金，位于高失业率地区可在此基础上再额外领取13周失业金（即33周）。每周失业金将在约300元基础上增加25元。今年领取失业福利者，失业金头2400元不需缴纳联邦收入税。
在失业时失去健保者可以较低价格维持健保。根据Cobra计划，大中型公司的僱员失业后可继续享受18个月的健保，但每月支出超过1000元。 振市案规定，政府承担头9个月保险金的65%，适用于受僱20人以上公司、在去年9月1日至今年年底失业的人。未选择Cobra计划的符合条件人士可在 60天内提交申请。该津贴仅适用年收入低于12.5万元的个人和不足25万元的夫妻。
IRS form 5405 for First Time homebuyer tax credit
IRS has updated the 5405 form to reflect the $8000 First Time homebuyer tax credit today.
http://www.irs.gov/app/picklist/list/formsInstructions.html?value=5405&criteria=formNumber
Home Ownership Assistance Program
This morning I took a class at CBOR (Cloumbia Board of Realtors) to learn about this program.
Details are here:
http://www.gocolumbiamo.com/Planning/Housing_Programs/homepro.php
Current income limits are as follows:
Family Size Lower Income
1 person $34,700
2 persons $39,700
3 persons $44,650
4 persons $49.600
5 persons $53,550
6 persons $57,550
7 persons $61,500
8 persons $65,450
How does the program work?
Through the normal process of buying a home, low- to moderate-income families may not have adequate funds for the down payment and other up-front loan closing costs. Assistance up to $5,000 or 5% of the purchase price, whichever is less, can be provided in the form of a 5 year forgivable loan to assist homebuyers in purchasing an existing home. These funds are only to be used for down payment and closing costs (prepaid costs such as taxes and insurance are not eligible), or to reduce the principle amount of a loan, and buyers must provide a minimum of $500 in cash toward the purchase.
Application for assistance is made through your lender in cooperation with the City of Columbia Planning and Development. Once you have met your lender’s requirements to get a home loan, have your loan officer contact Planning and Development at (573) 874-7239.
Buyers are required to attend a homebuyer education program, such as “Home Buying 101” or “MoneySmart” designed to help them understand their credit history and the process of buying and paying for a home. Local lenders are partners in this program. Some lenders offer home loans at terms that make home-ownership attractive and affordable. They can also refer buyers to the appropriate credit and homebuyer education programs offered throughout Columbia.
In cases where additional assistance is required to meet lender or program underwriting requirements, the City may increase assistance to a maximum of $10,000 or 10% of the purchase price, whichever is less, in order to fill a financing gap. A deed of trust will be required where City assistance exceeds $5,000, and loans will be forgiven over ten years.
Where can I buy a house?
Houses purchased under this program must be located within the city limits of Columbia. Applicants must avoid floodplains to qualify.
What types of property are eligible?
The property can be a single or a multi-family (condominium) dwelling. City staff must inspect the entire property to determine that it meets the City’s property maintenance code. All deficiencies must be corrected prior to homeownership assistance funds being provided.
Houses built prior to January 1, 1978, must have an inspection to determine if deteriorated paint exists, and in certain situations, samples of deteriorated paint and bare soil may be taken and sent to a lab for analysis. If the paint is determined to contain lead above HUD’s level of concern, paint stabilization of deteriorated surfaces by trained personnel is required prior to homeownership assistance funds being provided. You are also restricted from moving into the home until it is determined that identified lead hazards are corrected and a clearance of the unit is achieved. A $500 grant is available to the buyer to help offset costs associated with lead hazard reduction; all costs over $500 must be paid by the buyer or seller.
Are there any other requirements?
Prior to receiving city funds, and depending upon how much assistance the buyer receives, he/she is required to sign an Affidavit and Promissory Note to prevent the leasing, subleasing or selling of their home for a minimum of five years. A deed of trust will be required where City assistance exceeds $5,000. The Affidavit and Deed of Trust will be recorded at the Boone County Recorder’s Office. Funds provided for down payment and closing cost assistance shall be repaid on a prorated basis if the property is sold or ceases to be owner-occupied before the end of the affordability period.
The value of the property to be purchased cannot exceed $257,497.
What other programs are available?
Local lenders offer a number of loan packages -- take the time needed to find the loan package that works best for you. You should also carefully read the informative brochure published by HUD, Don’t Be a Victim of Loan Fraud – Protect Yourself from Predatory Lenders.
Where can I get more information?
Contact a loan officer at a local bank, savings and loan, mortgage company, or credit union, or the Department of Planning & Development on the 2nd floor of City Hall at 701 E. Broadway.
Telephone: (573)874-7239 (TTY: 1-800-MOR-ELAY)
Fax: (573)874-7546
Website: www.gocolumbiamo.com/dept/plan
E-mail: planning@gocolumbiamo.com.
Details are here:
http://www.gocolumbiamo.com/Planning/Housing_Programs/homepro.php
Current income limits are as follows:
Family Size Lower Income
1 person $34,700
2 persons $39,700
3 persons $44,650
4 persons $49.600
5 persons $53,550
6 persons $57,550
7 persons $61,500
8 persons $65,450
How does the program work?
Through the normal process of buying a home, low- to moderate-income families may not have adequate funds for the down payment and other up-front loan closing costs. Assistance up to $5,000 or 5% of the purchase price, whichever is less, can be provided in the form of a 5 year forgivable loan to assist homebuyers in purchasing an existing home. These funds are only to be used for down payment and closing costs (prepaid costs such as taxes and insurance are not eligible), or to reduce the principle amount of a loan, and buyers must provide a minimum of $500 in cash toward the purchase.
Application for assistance is made through your lender in cooperation with the City of Columbia Planning and Development. Once you have met your lender’s requirements to get a home loan, have your loan officer contact Planning and Development at (573) 874-7239.
Buyers are required to attend a homebuyer education program, such as “Home Buying 101” or “MoneySmart” designed to help them understand their credit history and the process of buying and paying for a home. Local lenders are partners in this program. Some lenders offer home loans at terms that make home-ownership attractive and affordable. They can also refer buyers to the appropriate credit and homebuyer education programs offered throughout Columbia.
In cases where additional assistance is required to meet lender or program underwriting requirements, the City may increase assistance to a maximum of $10,000 or 10% of the purchase price, whichever is less, in order to fill a financing gap. A deed of trust will be required where City assistance exceeds $5,000, and loans will be forgiven over ten years.
Where can I buy a house?
Houses purchased under this program must be located within the city limits of Columbia. Applicants must avoid floodplains to qualify.
What types of property are eligible?
The property can be a single or a multi-family (condominium) dwelling. City staff must inspect the entire property to determine that it meets the City’s property maintenance code. All deficiencies must be corrected prior to homeownership assistance funds being provided.
Houses built prior to January 1, 1978, must have an inspection to determine if deteriorated paint exists, and in certain situations, samples of deteriorated paint and bare soil may be taken and sent to a lab for analysis. If the paint is determined to contain lead above HUD’s level of concern, paint stabilization of deteriorated surfaces by trained personnel is required prior to homeownership assistance funds being provided. You are also restricted from moving into the home until it is determined that identified lead hazards are corrected and a clearance of the unit is achieved. A $500 grant is available to the buyer to help offset costs associated with lead hazard reduction; all costs over $500 must be paid by the buyer or seller.
Are there any other requirements?
Prior to receiving city funds, and depending upon how much assistance the buyer receives, he/she is required to sign an Affidavit and Promissory Note to prevent the leasing, subleasing or selling of their home for a minimum of five years. A deed of trust will be required where City assistance exceeds $5,000. The Affidavit and Deed of Trust will be recorded at the Boone County Recorder’s Office. Funds provided for down payment and closing cost assistance shall be repaid on a prorated basis if the property is sold or ceases to be owner-occupied before the end of the affordability period.
The value of the property to be purchased cannot exceed $257,497.
What other programs are available?
Local lenders offer a number of loan packages -- take the time needed to find the loan package that works best for you. You should also carefully read the informative brochure published by HUD, Don’t Be a Victim of Loan Fraud – Protect Yourself from Predatory Lenders.
Where can I get more information?
Contact a loan officer at a local bank, savings and loan, mortgage company, or credit union, or the Department of Planning & Development on the 2nd floor of City Hall at 701 E. Broadway.
Telephone: (573)874-7239 (TTY: 1-800-MOR-ELAY)
Fax: (573)874-7546
Website: www.gocolumbiamo.com/dept/plan
E-mail: planning@gocolumbiamo.com.
Wednesday, February 18, 2009
Another lost in bidding war
Just this morning, Paul's buyer lost a duplex in a bidding war. When price is low enough, buyers are fighting for them.
Somehow I don't hear those on the evening news.
Somehow I don't hear those on the evening news.
Tuesday, February 17, 2009
Bidding wars in real estate, again.
In the past 10 days, I saw 2 bidding wars in our office. One house was $149900, and had 3 interested parties. Another house was $172900, and had 2 full price offer.
Humm, spring is coming...
Humm, spring is coming...
Monday, February 16, 2009
Seafood on sale at Hyvee
Feb 16, 2009
Today I found Orange Roughy on sale at HyVee for $4.49 for 12 oz pack. These are our favorite fish. Kids love fish and rice -- the Chinese way.
今天Hyvee海鲜减价， 罗非鱼 $4.49/12oz.
Shrimp is on sale too, $9.99 for a 2 lb bag, pre-cooked, and shelled.
冰冻熟虾仁9。99/2磅。
It's close to Lent time, I guess that is why seafood are on sale.
Today I found Orange Roughy on sale at HyVee for $4.49 for 12 oz pack. These are our favorite fish. Kids love fish and rice -- the Chinese way.
今天Hyvee海鲜减价， 罗非鱼 $4.49/12oz.
Shrimp is on sale too, $9.99 for a 2 lb bag, pre-cooked, and shelled.
冰冻熟虾仁9。99/2磅。
It's close to Lent time, I guess that is why seafood are on sale.
Time to splant
Paul started some tomato seeds. He is trying to grow Abraham Lincoln tomato this year.
I am thinking of starting some lettuce and some Chinese baby bok choi.
I am thinking of starting some lettuce and some Chinese baby bok choi.
Frustration with compact fluorescent light bulbs
When these first became available, Paul got several boxes -- total of 30 bulbs I think -- when they were on sale at WestLakes.
Well, over the past 2 yrs, our experience was that about 10% of these burn out faster than they promised.
The good news is, Westlake would take them back without receipts. A clerk there told us we are not the only ones returning them. Enough people are returning them so Westlake is accepting all returns. They would either exchange one for you or give you money back.
Oh, and Homedepot will take the burnt out ones. Try not to dispose these CFL bulbs in the normal trash, because they contain mercury.
I just found an article that explains this issue much better than I can:
http://greeninc.blogs.nytimes.com/2009/01/27/why-efficient-light-bulbs-fail-to-thrive/?partner=rss&emc=rss
Well, over the past 2 yrs, our experience was that about 10% of these burn out faster than they promised.
The good news is, Westlake would take them back without receipts. A clerk there told us we are not the only ones returning them. Enough people are returning them so Westlake is accepting all returns. They would either exchange one for you or give you money back.
Oh, and Homedepot will take the burnt out ones. Try not to dispose these CFL bulbs in the normal trash, because they contain mercury.
I just found an article that explains this issue much better than I can:
Why Efficient Light Bulbs Fail to Thrive
By Leora Broydo Vestelhttp://greeninc.blogs.nytimes.com/2009/01/27/why-efficient-light-bulbs-fail-to-thrive/?partner=rss&emc=rss
Sunday, February 15, 2009
Our rentals
We have 4 rentals, renting from $500 to $720/month. After managing them ourselves for about 3 yrs, we turned it to a management co. Well, he is worth his charge! After he took over, for the first time, all 4 are rented, and 1 of the 4 even had a rent increase.
Our yearly gross rent income (before taxes, insurance and expenses) over property purchase price is a little less than 10%. But nowadays, there are rental property on the market that brings over 12% return.
Humm, may be time to buy some more...
Our yearly gross rent income (before taxes, insurance and expenses) over property purchase price is a little less than 10%. But nowadays, there are rental property on the market that brings over 12% return.
Humm, may be time to buy some more...
$8000 tax credit for first time home buyer in 2009
I have been research everyday to get the details about this. Here is what I found so far:
From the Wall Street Journal:
Congress slightly increased to $8,000 an existing $7,500 credit for first-time homebuyers and eliminated repayment provisions. Congressional negotiators said that $8,000 number isn’t yet finalized…
The new credit is retroactive to Dec. 31, 2008, which means that anyone who buys a house this year, through August, won’t have to repay it. First time buyers who used the credit in 2008 still have to pay it back over a 15-year period.
------------------
Ling's note: Somewhere else I read that credit is available to buyers who close on a house through Dec 1, 2009 -- why not Dec 31, 2009? I don't know.
Alo, there is income limit. For people making over $75,000/yr or couple over $150,000/yr, this may not apply.
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