Central Police District Newsletter December 2009

At the end of each year I like to take a look at the
various data sources to see where we are with the
numbers of reported incidents. It is a check against our
observations and analysis throughout the year as we
look for trends and issues that need extra attention. In
this article I will share the incident data figures I have
for the past three years for some major categories and
discuss what we are seeing from a policing perspective.

Click here for the entire newsletter.

KW Websites Have New Foreclosure Search

 

Just released this week is the ability to search and save your search for any and all Madison area foreclosure/bank owned properties and short sales. This is just another great tool for homebuyers and investors to use on our Keller Williams Realty website.

To search and save your search regarding these 2 new search types, do the following:

1. Go to http://www.kittlesonteam.com
2. On the left side menu bar, choose Property Search

    

3. From the center section options choose

    

4. At the top of the next screen choose the radio button

    

   It’s as simple as that!

    

    

       

Your Spiritual Bank Account

This is AWESOME….something we should all remember. 

A 92-year-old, petite, well-poised and proud  man, who is fully dressed each morning by  eight o’clock, with his hair fashionably combed and shaved perfectly, even though he is legally blind, moved to a nursing home today.

His wife of 70 years recently passed away, making the move necessary. After many hours of waiting patiently in the lobby of the nursing home, he smiled sweetly when told his room was ready.

As he maneuvered his walker to the elevator, I provided a visual description of his tiny room, including the eyelet sheets that had been hung on his window.

“I love it,” he stated with the enthusiasm of an eight-year-old having just been presented with a new puppy.

“Mr. Jones, you haven’t seen the room; just wait.”

“That doesn’t have anything to do with it,” he replied…

“Happiness is something you decide on ahead of time. Whether I like my room or not doesn’t depend on how the furniture is arranged…it’s how I arrange my mind. I already decided to love it ‘It’s a decision I make every morning when I wake up. I have a choice; I can spend the day in bed recounting the difficulty I have with the parts of my body that no longer work, or get out of bed and be thankful for the ones that do” he stated. 

Each day is a gift, and as long as my eyes open, I’ll focus on the new day and all the
happy memories I’ve stored away. Just for this time in my life.

Growing old is like a bank account. You withdraw from what you’ve put in.

So, my advice to you would be to deposit a lot of happiness in the bank account of memories!

Thank you for your part in filling my Memory bank. I am still depositing. Remember the five simple rules to be happy:

1. Free your heart from hatred.
2. Free your mind from worries.
3. Live simply
4. Give more.
5. Expect less.

Have a nice day, unless you already have other plans.

Tax Credit in Plain English

TAX CREDIT 2.0

Understanding the Extended Home Buyer Tax Credit

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.

 

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.

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:

• The price of the home.
  • Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.
• The buyer’s 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.

 

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.

 

ARE YOU A GOOD “MOVE UP BUYER” CANDIDATE?

 

 

Madison’s “Move Up Buyers” benefit in several ways.

• The $6,500 tax credit may be the difference maker for you to take advantage of a move up. To better understand how this tax credit works, CLICK HERE for information provided by the IRS.
• Interest rates are very low. I would be happy to connect you with a reliable lender offering the best rates and mortgage options.
• Although a seller may take a loss on the home they sell, the gain received is likely to be much greater. The illustration above is a great example.
• Many of the “Move Up Buyers” need to sell a home that is priced in the hottest price ranges for Dane County real estate sales. In fact, properly priced homes in good condition continue to sell quickly. The initial $8,000 tax credit created lots of activity and sales for homes priced under $300,000.
• On the flip side, the home purchase is in the price range that is currently suffering the most. In Dane County the following are the hardest hit price points are $400,000+. In September, the following stagnant sales occurred:

 

 

 

 

 

 

In fact, Dane County currently has over 65 months of “inventory” for homes in the luxury home price range. In the past year, only 13 homes have sold over $800,000. What a great time to buy your dream house at the bottom, before the market rebounds.

 

So, are you a good candidate to take advantage of the tax credit?

Visit my website www.kittlesonteam.com to:

Calculate and research what your home would sell for in today’s real estate market. You will receive two instant estimates once you enter your homes information.

To start dream shopping for your “Move Up” dream home. Once you log in you can save all of your favorite properties and get acquainted with the market from the convenience and privacy of your computer without having multiple Realtors contacting you. This is a service I provide to all of my friends and clients. Feel free to pass this on to anyone you know that would appreciate it.

First Time and Existing Buyer Tax Credit Explained

 

President Obama just signed in to law an extension to the First Time Homebuyer Tax Credit and an additional Home Owner “Extended” Tax Credit of up to $6500 for an existing homeowner. A great resource for explaining the opportunities under this credit can be found by clicking this link.

Bottom line, there will be opportunity for tax credits on a home purchase from now until April 30, 2010. This would be a great time to get out and start looking as well as getting your current home on the market!

Central Madison Police Newsletter

Click this link for the latest edition of the Central Madison Police Newsletter.

Looks like they’re a few months behind.  The “latest” issue is September 2009.

What’s up with that?

Freakfest Hitting State Street on Saturday

It’s interesting to me that what I remember from my youth as a rowdy, crowded party night on State Street has now turned in to an event now known as Freakfest. 

I like the fact that there are some great bands headlining this event.  I love the fact that at least last year, the night went off without much incident.  I’m just not sure I want to pay to participate.

This more than likely has to do with the fact that 5 years ago I was referred to as “the old guy” when I was watching the parade of great characters walk State Street.  Old Guy?!?   Listen missy!  I was on state street in the early 1980’s when the crowds were estimated to top over 100,000 each and every Halloween.  I’m part of the reason this tradition still lives on!

OK, I’ll calm down.  I will miss seeing the creativity of the youth.

To find out what’s happening during the night, click this link.

Short Sale Pitfalls

This past week a guy walked in to our office with a “deal we couldn’t resist”. He was very professional looking. He was claiming to be a buyer working with a group of investors holding a $50M line of credit to purchase short sales.  He wanted one of my agents to help him find short sale properties, negotiate a really low purchase price with the bank, close on that and immediately have a Buyer secured for a back to back closing where he can make money on the purchase price difference.  He claimed that he’ll list exclusively with our associate, pay a reasonable commission and an additional 20% of their proceeds from the net of the transaction.  In essence, shorting a distressed seller even more of a deficiency that they would have been had they sold it to the second buyer to begin with.

It’s amazing to me that these type of business dealings are allowed to happen. You see, if the “option” holder, in this case this company, isn’t able to secure a buyer with a high enough offer to close (covering what they are paying vs. what a new buyer will pay) they will tie up the seller and take them into foreclosure anyway.

I called this gentleman and had an interesting conversation with him. He worked very hard to try and convince me he was doing the homeowner and my agent a favor in this deal. I asked where the “win win” fell for the homeowner. He stated they were negotiating the short sale for them. I asked, if they had over $50M in a line of credit why they wouldn’t simply close on the property and then remarket it. This would, in my mind, create a win win for the seller and this buyer if they were able to acquire the property at a reasonably reduced rate. Why would he do that? Was his question back to me. You see in their current business model there is very little risk to them and all of the risk falls on the homeowner and the real estate agent.

I thanked him for explaining his model to me and shared with him that I would suggest that none of my associates will get involved in a transaction like this. I just can’t see the upside for a distressed homeowner.

If you are a distressed homeowner, don’t get taken by these types of businesses. They may promise you salvation and yet you may find you’re dealing with the devil.

For more information on distressed property options, visit our website by clicking this link.

Here’s a Test of Staying Positive

So, I just finished a great 2 days of training for the Keller Williams Associates in Bozeman Montana. It was a beautiful day, weatherwise, and I was certain I would have no trouble getting back to Milwaukee on time and back home to my own bed without issue.

HA!

The first announcement came across the PA at the airport, “Ladies and gentleman we’ve just been informed by air traffic control in Minneapolis that we have been delayed from our departure due to weather and other issues in Minneapolis. We’re not sure how the long the delay will be but as soon as we know we will keep you updated”.

Ok, that’s not unusual. Delays happen.

Next announcement, “ladies and gentleman we’ve just been informed by air traffic control in MSP that the delay is due to weather and runway construction at the airport. We’ve been told we should be cleared for take off in 1 ½ hours.” We’re sorry for the inconvenience.

Next announcement, “Ladies and gentleman we’ve been informed that we will be able to take off 3 hours late from here. Please get in line and we’ll try our best to get everyone re-routed due to this delay. Just to be clear the delay is due to weather, the weather has effected the construction of the runway and because of these 2 factors we are not responsible for any additional expense you might incur due to this. We apologize for any inconvenience.”

Wow, never heard that excuse before.

Now we’re in the air. Flight was moving along well. Should be in by 8:05 p.m. and all flights have been delayed out of mSP so most should make their connection. Now from the pilot “ladies and gentleman, we’ve just been informed that the airport has been closed down due to Vice President Joe Biden being at the airport. We are now in a permanent holding pattern.”

Alright. Any bets as to when I do get home tonight?

Oh, this just in….we are now running low on fuel. We are now landing in Fargo, ND to refuel. No idea when we now get in.

SubZero/Wolf Hiring Back Laid Off Workers

Good news on the employment front in Madison today.

An increase in home sales and home remodeling projects has prompted Sub-Zero/Wolf to add a second production shift at its factories producing high-end appliances in Fitchburg and Phoenix.

See the rest of the article by clicking here.