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.

Not a Top 10 List I Like-

Wisconsin ninth in median property taxes

New data released by the Census Bureau show that Northeast homeowners and those in the Midwest tend to pay the most in property taxes, with Wisconsin ranking ninth among the top 10 states, a nonprofit tax research group based in Washington, D.C., said Tuesday.

See the rest of the Wisconsin State Journal Story by clicking here.

Kittleson Named Finalist in NAR Technology Awards

Darren Kittleson, broker and Operating Principal for Keller Williams Realty Madison West/Madison Crossroads was recently named a finalist in the National Association of REALTORS (NAR) Center for Technology Advocate award category. Kittleson was nominated by his peers for his willingness to go above and beyond the call of duty to reach out and engage people with the information and knowledge he has about technology. He does this with no regard to compensation, and for the most part, has reached across ‘brokerage’ boundaries to help and instruct. He is being recognized as one of the individuals that is making changes in the industry one person at a time.

For the list of nominees, visit this link.

Madison Named 7th Best Place for Jobs

The blog “Top Colleges Blog” has named Madison the 7th best place for jobs.  Even during this recession our great city is being recognized for it’s relatively low unemployment, well educated workforce and high quality of life.

You can see the entire post by clicking here.

I Get a Chance to be a Local Expert

Earilier this week I got a chance to comment on the 1st Time Homebuyer Tax Credit.

more about "I Get a Chance to be a Local Expert", posted with vodpod