Greater Montana GMAC Real Estate

First Time HomeBuyers Tax Credit Webinar

2009-08-03T16:05:00.004-06:00

Click on the link and attend our First Time Home Buyers Tax Credit webinar on Thursday evening at 6:30 PM. We will tell you how to take advanatage of the First Time HomeBuyers $8,000 credit and tips for succcessful house hunting.

https://webmeeting.dimdim.com/portal/JoinForm.action?confKey=greatermontana

Existing Home Sales hit 8-Month High

2009-07-23T09:20:00.003-06:00

Ya, that's the headlines this morning on MSN, but remember all real estate markets are local. So what is going on in Ravalli County. Well, in the month of June we did see our first month with an increase in the number of sales from 2008, but that is about the only increase that we say. For the first half of 2009 the number of residential sales in down 20%, our median sales price has dropped 14% and our inventories are declining with 18% less new listings than a year ago.

What does all this mean to you!
If you are a seller it means continued patience is required, sorry! There are still over 896 active residential listings in Ravalli County and our Days on Market is now up to 202, but yes we are seeing increased activity. We are continuing to see sales with the First Time HomeBuyers but we are also starting to see activity in the $300,000 to $400,000 range.

If you are a buyer it means it is a great time to buy!! Prices are coming down, interest rates are great and there are a lot of motivated sellers on the market. You take that and add if you are a First Time Home-Buyer the $8,000 tax credit, (Has to be used before November 30th) and you are all set to buy your new home.

Catching Up

2009-06-23T11:09:00.002-06:00

Why is it when you go on vaction (even when only for 5 days) it takes you two weeks to get caught back up again. As I try to find the bottom after spending 5 days in Austin, TX (with my Mom) visiting my sister and attending my niece's high school graduation, I realized I hadn't posted to the blog.

The market in the Bitterroot Valley has picked up some. We are seeing more activity on our listings and the number of closings for May was only down 24% from a year ago. The overall market is off about 40% from a year ago.

If you are a First Time HomeBuyer it is a great time to buy, with prices down, interest rates low and the $8,000 tax credit that you can now use towards your closing costs.

Hope everyone is enjoying our beautiful Montana summer.

Greater Montana GMAC Real Estate continues to provide Exceptional Premier Service

2009-06-02T14:27:00.002-06:00

You may have heard that earlier yesterday, General Motors announced that it has filed for bankruptcy protection.

First, I want to let you know that GM's current situation has nothing to do with us. Since last November we have been owned by a new parent company, Brookfield residential Property Services, a division of Brookfield Asset Management. We are now part of a daynamic global organization that is kown world-wide for its financial strength and stability. What this means is we are strong, stable, focused and well-positioned for long-term growth and success.

Second, I want to assure you, as our valued clients, that this will have no impact on you or on our ability to continue to provide you with the best Premier Service.

We would also like to take this opportunity to thank you again for your business. We look forward to continuing our relationship and being of service to you in the future.

HUD: Tax Credit Can Be Used on Closing Costs

2009-05-29T15:23:00.000-06:00

FHA-approved lenders received the go-ahead to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront, according to eagerly awaited guidance from the U.S. Department of Housing and Urban Development on so-called home buyer tax credit loans that was released today.Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.The loans can't be used to cover the minimum 3.5 percent, senior HUD officials told reporters on a conference call Friday morning. Thus, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5 percent downpayment.There remain many sources of assistance for buyers needing help with the 3.5 percent downpayment, including many state and local government instrumentalities and nonprofit lenders.In addition, some state housing finance agencies have developed their own tax credit bridge loan programs, so buyers in states whose HFAs offer such programs can monetize the tax credit upfront to cover all or part of their downpayment. These programs are separate from what HUD announced today. The first-time homebuyer tax credit was enacted last year--and improved upon earlier this year--to help encourage households to enter the housing market while interest rates are low and affordability is high. The credit is worth up to $8,000 and is available to households that haven't owned a home in at least three years. The credit does not have to be repaid, and is fully reimbursable, so households can get their credit returned to them in the form of a payment.

Source: Robert Freedman, REALTOR® Magazine Online

First Time HomeBuyers need help with your Down Payment!!

2009-05-18T14:44:00.002-06:00

HUD Action Allows Home Buyers To Use $8,000 Tax Credit For Downpayments On FHA-Insured Loans.

Here is an article from the National Association of Home Builders about the HUD program. http://www.nahb.org/news_details.aspx?sectionID=0&newsID=9233

This is truely an opportunity of a lifetime. If you are thinking it is time you buy your first home, give us a call and we will be happy to help.

When it Comes to Buying a Home, Two Points Can Make a World of Difference

2009-05-06T14:33:00.000-06:00

Whether now is the precise time to purchase your dream home or not, there are certainly more than just a few good reasons to purchase – especially for first time buyers.
In May, 30-year mortgage rates of 5 percent were widely available and down from January's already low 5.8 percent. And rates are down a full two percentage points from August of last year.
What many consumers are not hearing is that despite a turbulent real estate market, mortgages are at historic lows. Compared to just last summer, 30-year fixed rate mortgages are about a point and a half lower. So what does this mean – especially for a first time buyer? Buying power. A lot more buying power.For instance, with the lower rates, a home buyer could save $257 per month ($3,084 per year) on their payment toward a $200,000 mortgage versus if they had recently obtained a 30-year fixed interest rates compared with August of last year.

On a $200,000, 30-year fixed rate mortgage at 5 percent, the monthly payment would be $1,073 – compared with $1,330 for a 7 percent mortgage, the national average for a 30-year fixed rate last summer.

According to national mortgage statistics, here's a breakdown of how much further a home buyer’s dollar goes on a $200,000 mortgage as rates continue to hover at historically low levels:

7 percent mortgage: $1,330 monthly payment (rates in August 2008)
6 percent mortgage: $1,199 monthly payment (rates in December 2008)
5 percent mortgage: $1,073 monthly payment (rates in May 2009)

When you combine record low interest rates, low prices and the federal government's tax credit for first time home buyers, and the mortgage interest deduction, there are certainly a lot of positive reasons to make the case for buying versus renting right now.

Another home buyer myth is that lenders are not loaning money right now due to the credit crises. "Home buyers can qualify for FHA loans with as little as 3.5 percent down payment.

Home buyers can go online to find information on homes for sale and mortgage rates at http://www.GreaterMontanaRE.com. Renters can determine for themselves if now’s the time to buy using a rent versus own calculator: http://www.greatermontanare.com/calculators/rent_vs_own.htm

This article is curtesy of GrassRootsPR and GMAC Real Estate.

Missoula Seminar

2009-04-29T20:46:00.002-06:00

We are having another First Time HomeBuyers Tax Credit Seminar in Missoula tomorrow (4/30) evening at 6:30 PM at the Missoulal Public Library. We will have lots of information for you on buying your first home, on Mortgages, and the new $8,000 Tax Credit. Come on down to the library tomorrow night and we will help you get on the right track for purchasing your first home.

Seminar a Success

2009-04-23T21:37:00.003-06:00

Our First Time HomeBuyers Tax Credit Seminar in Hamilton was a great success. We had over 30 people in attendance and learned a lot of new things. We also learned that there is a lot of different information on a wide variety of websites. We are in the process of getting some answers on some of the questions of who qualifies in certain circumstances, especially in some unique situations. We have sent a list of questions to Washington DC to Max Bacaus's tax advisor to find out what the intent was for the law. When we get our response back from them I will post the questions and the answers that we received.

Here are is a list of great web sites for First Time Homebuyers:

www.MTHousingResources.com-MT Housing Resources is a public service offered by (MAR) that provides a searchable web site of housing related programs at the local, state, and federal levels available to homebuyers in the state of Montana.

www.cccsmt.org – Consumer Credit Counseling Service is a non profit agency that assists with credit issues and education.

www.efanniemae.com- Fanny and Freddie loan program information.

www.homeword.com-Contact information for the Bitterroot Valley Human Resources District. (Homeword class,)
Bitterroot: 360-2211
Missoula: 532-HOME

http://www.federalhousingtaxcredit.com - The best site for direct information regarding the $8,000. Tax credit:

I hope this is all helpful!

Ravalli Republic First Time HomeBuyers Article

2009-04-16T20:06:00.003-06:00

In today's local newspaper (Ravalli Republic) there was a great article on the First Time HomeBuyers Tax Credit Program and there was information about the new Welcome Home Program that is in the state of Montana legislature at this time. This new Welcome Home Program if passed by the legislature will assist First Time HomeBuyers with a bridge loan of up to $5,000 that can be used for their downpayment, and repaid out of their $8,000 tax credit.

Here is a link to the article from the Ravalli Republic; http://tinyurl.com/d8bufw

Don't forget to attend our First Time HomeBuyers Seminar in Hamilton on April 21st at 224 North 4th Street. Hope to see you there.

2009-04-12T20:07:00.002-06:00

FIRST-TIME HOMEBUYER TAX CREDIT

In 2009, Congress increased the credit to $8000 and made several additional improvements. This revised $8000 tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009.

Over the next few weeks I will post some Frequently asked Questions that will help you understand the tax credit.

Tax Credits -- The Basics
1. What’s this new homebuyer tax incentive for 2009?
The 2008 $7500, repayable credit is increased to $8000 and the repayment feature is eliminated for 2009 purchasers. Any home that is purchased for $80,000 or more qualifies for the full $8000 amount. If the house costs less than $80,000, the credit will be 10% of the cost. Thus, if an individual purchased a home for $75,000, the credit would be $7500. It is available for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.

2. Who is eligible?
Only first-time homebuyers are eligible. A person is considered a first-time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.

3. How does a tax credit work?
Every dollar of a tax credit reduces income taxes by a dollar. Credits are claimed on an individual’s income tax return. Thus, a qualified purchaser would figure out all the income items and exemptions and make all the calculations required to figure out his/her total tax due. Then, once the total tax owed has been computed, tax credits are applied to reduce the total tax bill. So, if before taking any credits on a tax return a person has total tax liability of $9500, an $8000 credit would wipe out all but $1500 of the tax due. ($9,500 - $8000 = $1500)

4. So what happens if the purchaser is eligible for an $8000 credit but their entire income tax liability for the year is only $6000?
This tax credit is what’s called "refundable" credit. Thus, if the eligible purchaser’s total tax liability was $6000, the IRS would send the purchaser a check for $2000. The refundable amount is the difference
between $8000 credit amount and the amount of tax liability. ($8000 - $6000 = $2000) Most taxpayers determine their tax liability by referring to tables that the IRS prepares each year.

If you think you qualify and want more information attend one of our First Time HomeBuyers Seminars. We will be in Hamilton at 224 North 4th Street on April 21st and in Missoula at the Missoula Public Library on April 30th. Call 363-4450 for more information on the Seminars.

Despite what a few are Saying, Real Estate Markets are Improving!

2009-04-07T20:01:00.003-06:00

April is finally here and we are finally hearing some good news about the real estate industry. Don't get me wrong there are those out there that still feel that the sky is falling in.

The bottom line is there was an overreaction to the inflationary increases in real estate over the period between 2000 to 2006. As a result, real estate in most areas is now undervalued and the consumer has taken notice. This is a very good sign, as it shows that the pent up demand that we have all talked about for the past couple of years is starting to kick in.

The inventory is decreasing in our area. Sure, sellers are taking their properties off the market, but so what? Sellers have always taken their properties off the market unless they could get what they wanted. There is nothing new or revolutionary in this strategy. This will help greatly in stabilizing our market. We have 22% less inventory on the market than we did a year ago.

Sales are still slow but we are seeing increased activity as our Spring weather improves. So don't believe that the sky is falling, there is always light at the end of the tunnel.

If you have any questions on our current market or if you know someone that is interested in selling or buying real estate, please give me a call.

Independent Real Estate Market Forecasts

2009-03-31T10:28:00.003-06:00

How about some good news!! Those of us that have grown up in Montana know that we don't follow the National trends as much as other parts of the country. We are tough and we are positive and now it is showing through in the Indpendent Real Estate Market Forecast. Here is the link so you can read the article; http://www.housingpredictor.com/montana.html.

Yes the market is slow but we are not seeing the negative appreciation that other parts of the country are. Now that we are through the 1st Quarter and hopefully spring is not to far away things are starting to pick up. If you are thinking of selling your house this spring, now is a good time to get it on the market.

Reverse Mortgage Information from Wells Fargo

2009-03-25T15:03:00.002-06:00

I have had a lot of my clients ask me about the Reverse Mortgages, so I invited Kathy Earle a Reverse Mortgage Consultant with Wells Fargo Home Mortgage to our Business Meeting at our Missoula office to explain all of it to us. She provided us with a lot of useful information and provided us with this link so I could share it with all of you. If you want to learn more about Reverse Mortgages here is some information for you; https://www.wellsfargo.com/mortgage/refinance/learn/reverse

There is a lot of useful information on the website. If you have any further please feel free to give me a call and I will do my best to find answers.

Pay Off Mortage Sooner to Save

2009-03-23T20:16:00.001-06:00

Did you know that you can pay your mortgage off years sooner simply by changing your payment period from monthly to weekly, and save yourself thousands of dollars in interest in the process?

What’s more, most financial institutions and mortgage lenders will let you make the change in just a few minutes of your time. This is just one of several mortgage tips that I can offer you. Wouldn’t you like to pay your mortgage off quickly and free your money to use on some of the other things in life?

If this seems like a good move for you, then why not call today, and find out how I can help you with creative financing solutions you may never have considered.

First Time HomeBuyers Tax Credit

2009-03-19T19:56:00.003-06:00

Do You Know Someone that would benefit from this Tax Credit?

Overview

The Economic Stimulus Bill signed by President Obama in February offers first-time homebuyers a tax credit equal to 10% of the cost of their home up to $8,000. This tax credit is available to first-time homebuyers who purchase a home in the United States as their principal residence on or after January 1, 2009, and on or before November 30, 2009.
To qualify as a first-time homebuyer, you cannot have owned an interest in a principal residence in the past three years from the date of the qualifying purchase.
To qualify for the full amount of the tax credit, you must earn no more than $75,000 if filing as Single or Head of Household. If filing a joint return, the buyers may have a combined income of no more than $150,000. There is a phase out of the credit if reported income is more than $75,000.
The tax credit must be taken as a credit from your total tax liability for the 2008 or 2009 tax year. Also, the tax credit is "refundable," meaning that the taxpayer can receive a tax refund if the credit is greater than the estimated liability.
This credit does NOT have to be repaid, making the tax credit a fantastic opportunity that anyone considering becoming a first-time homebuyer cannot afford to miss.
Further information can be found at www.federalhousingtaxcredit.com or www.irs.gov. This information is provided for general awareness only, and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind. Please consult with your tax professional for complete details.

Bitterrot Market Update

2009-03-14T11:14:00.003-06:00

We are starting to see more activity going on in the market place as we get closer to spring and warmer weather. (It's close!!)

Our residential inventory in the Bitterroot MLS is down 20% from a year ago and that is a good thing. As we clear out some of this inventory we will see our prices stabilize. We are also seeing more pendings at this time of year compared to a year ago, but our closings are still way down.

The new First Time HomeBuyers Tax Credit should help our market, especially when those buyers get educated about the $8,000 tax credit (that is no longer a loan). If you know a first time homebuyer have them give us a call, as it is a great time to buy with low interest rates, great prices on homes and the tax credit.

Watch for news of our up and coming First Time HomeBuyer Seminar.

Premier Service Diamond Award Winner

2009-03-02T21:04:00.000-07:00

Greater Montana GMAC Real Estate joins a select group of real estate professionals nationwide recognized for providing incredibly high levels of customer service to their clients. “With our Premier Service program, buyers and sellers are asked to complete a survey evaluating the service they received. Once completed, the surveys are tabulated by an independent research firm and the results detail how we did.”

To qualify to become a Premier Service Diamond winner, Greater Montana GMAC Real Estate had to receive a minimum 95% customer satisfaction rating based upon at least thirty returned surveys and maintain a minimum survey return rate of 30 percent. Greater Montana GMAC Real Estate's customer satisfaction rating is, 97.5%.