$8,000 Tax Credit Extension: Will it Become a Reality?

Congress on Thursday voted to extend the current home buyer tax credit through April 30 and to extend a $6,500 credit to buyers who have owned their current home for five years. The credit, which still must be passed by the House of Representatives, wouldn’t cover second homes and is limited to homes of less than $800,000.
The credit would also be extended to a slightly larger pool of buyers by raising income caps to $125,000 for single filers and $250,000 for joint filers, up from $75,000 and $150,000, respectively. The National Association of Home Builders used Census data to estimate that around 14% of first-time buyers were ineligible for the current credit but will be eligible with the expanded income limits.
It's estimated that around 70% of current homeowners will be eligible for this Tax Credit.

Little House on the Prairie vs. Stop and Stare: Updating Exterior Paint Colors

Whether you're trying to sell your Nashville home, or are looking to make an easy update to your current home, there is no easier way, than with a can of paint.

Updating the exterior paint color of your home can make a HUGE difference in the way that potential home buyers view your property. Most home buyers make a decision on a home in the first 30 seconds, you need to make the most of this time. Take for example to two photos below. Notice the house on the left, basic white, nothing special, you’ve most likely seen a million homes similar to it. By updating the paint colors, the property immediately looks more inviting, you want to go inside, and so will potential buyers.

Compare the houses below, and see the difference a can of paint can make.

Home Staging: What’s the Deal?

I get asked this question a lot, should I spend the money to stage my home, and my answer is yes, especially, if your home is vacant. Many potential buyers have a hard time visualizing furniture placement, staged homes also give home a "lived in" feel, and people feel more comfortable knowing that. Non-staged homes typically remain on the market 80% longer than those that are not staged. Staged homes typically sell for 17% more money than their un-staged counterparts (US Housing & Urban Development). Below is a chart of the most common staging projects, and their typical return.

Josh Anderson Voted Top 3 Real Estate Agents- 3rd Year in a Row

Josh Anderson was voted, once again, as one of the Top 3 Real Estate Agents in Nashville, based on reader polls from the Nashville Scene. This is the third year in a row that Josh has been voted as one of the Top 3 Real Estate Agents.

Josh works with home buyers and sellers in Nashville and Middle Tennessee. If you're looking to buy or sell your Nashville home, give Josh a call at (615) 509-7000 or Josh@JoshAndersonRealEstate.com to find out why he's been voted one of the Best Nashville Real Estate Agents for 3 years in a row.

House Extends $8,000 Tax Credit to Active Military for One More Year

On Monday, the House of Representatives unanimously to extend the $8,000 Tax Credit to all active military personnel, foreign service, and intelligence personnel for one more year, ending November 30, 2010. The bill now goes to the Senate, and is expected to pass with similar ease.

Rep. Charles Rangel (D-NY) presented the bill, HR 3590, stating that military personnel serving oversees this year didn't have the same opportunity to take advantage of the tax credit. To qualify, military personnel must have spent a minimum of 90 calendar days of the current calendar year oversees, as well as the original qualifications (see our older blog) for the tax credit. Furthermore, it does not require the borrowers to pay back the tax credit if they are deployed after receiving it. The current tax credit requires borrowers to pay back the tax credit if they do not OCCUPY the home within three years after receiving the tax credit.

There is no information on whether the $8,000 tax credit will be extended for ALL eligible borrowers.

We'll keep you updated on the Senate approval.

What’s in it for me? Should I buy a home using a Realtor?

- It’s FREE. Typically, both buying and selling agent’s fees are paid by the seller.
- Your Realtor can help you narrow your search, by sending you selected homes that fit your criteria, saving you time, while keeping you up to date on newly listed properties. It’s like having a personal assistant.
- Your Realtor can help you negotiate. There are a plethora of negotiating factors, including but not limited to price, financing, terms, date of possession and often the inclusion or exclusion of repairs and furnishings or equipment.
- Your Realtor can help you with performing due diligence. Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, just to name a few.
- Provide piece of mind. Your Realtor will make sure the closing process runs smoothly from offer acceptance through closing day.

Show me the Money: How Much Should I Expect to Pay Up Front when Buying a Home

Wanting to know how much money you'll need upfront in order to buy your new home, here's a breakdown of some common costs most potential buyers will have to cough up.
- Earnest Money (Typically 1% of offer price) - Money needed to show the seller that you are sincerely interested in the property; usually 1% of offer price. If the offer is accepted, money is either used toward closing costs or if seller is paying closing costs, then money will be returned to you.
- Inspection Cost ($300-350) - Once the potential buyer and seller agree to a purchase price, an inspection is usually scheduled. An inspector will prepare a report based on his/ her findings of structural, mechanical, electrical, and plumbing components of the home. Most contracts are "contingent upon inspection" meaning that when the inspection report comes back, if the results are unsatisfactory, the potential buyer can revise the contract, protecting them from unforeseen repairs.
- Appraisal Fee($350-500) - An appraisal is typically performed by the bank; this cost may also be included in the Lender fees that are grouped into closing costs.
- Credit Report Fee ($25-35) - Used by the lender to establish mortgage rates, this cost may also be included in the Lender fees that are grouped into closing costs.
- Closing Costs (up to 3% purchase price) - This is the money the potential buyer brings with them in the form of cashier’s check on the day of closing. It is possible for the offer to be written, so that the seller pays all or a portion of the buyer’s closing costs.