…the market seems to be improving and lending has increased but the time to close has still been in the range of 2 months unless it is a cash deal. It would be nice for everyone if a streamlined process could be invented while still protecting all involved.  That may be another topic to explore in the near future!

I wanted to express my dismay at the lack of communications from our senators in New York State.  I realize that they are busy and that they get many requests, but at least an acknowledgement would be a positive step towards building relationships and partnereships.  Case in Point:  I forwarded an idea to Senator Schummer’s office in December for his (or his staff’s) consideration.  Again, I realize that they are swamped with emails and contacts, but at least an acknowledgement would have been nice.  After not hearing a word in over 5 weeks time, I then forwarded the same concept to Senator Gillabrand’s office only to receive the same response-nothing (It’s been 3 weeks in her office now)!  In a nutshell, the 3 page document outlined a general plan to stimulate homes sales, enhance the bank’s lending capabilities, score a big win-win for homebuyers and at the same time creating jobs in the housing sector at a cost to the federal government of about half of what the first-time homebuyer’s tax credit cost the government and extending the concept to many more homebuyers.  It’s not a New York State thing and if you are reading this and have the ear of your state Senator, I would like to hear from you and maybe we can find a sympathitic ear or at least get an acknowledgement of a letter sent.  The concept is simple, cost effective, and does not allow homebuyers to start “upside-down” in the financing of their home.

It seems that we have a much tougher time getting a complete transaction to its final stages.  While most of the road blocks that we see involve the financial aspects, very many are rearing their heads over purchasing a “less than perfect” home.

We seem to have moved to a different mind set of purchasers.  Some are first time homebuyers and are not aware of the responsibilities of owning a home-which includes routine maintenance.  Unfortunately financial institutions and buyers have taken the same approach of insisting that a home be absolutely without a single flaw before a purchase is finalized.  To that end, we have been counselling potential home sellers to have their home in the best condition possible if they expect a smooth transaction and eventually, a successful sale, for if they don’t or if any detail is left undone, there may very well be an interruption of the transaction until the detail is remedied or the sale falls apart.  If you’re selling your property, the best thing you can do is to have your home in truly “move-in” condition and sometimes that means fixing a number of small items such as loose moldings, scratches on the wall, or a leaky faucet-these things can hold up a successful transaction.

The financial institutions echo this sentiment in their commitment for funds.  They want the home perfect at closing and some are not willing to close until then!

I would be interested in any feedback that you may have!

Leon

Congress has passed and President Obama has signed into law an extension of the first time home buyers tax credit. In addition to the previous guidelines, an added bonus has been included for existing home owners so that if you have lived in your home for 5 of the past 7 years, you may be eligible for a tax credit of up to $6500. These programs will expire in 6 months with another 60 days after that for pending contracts. Call me for more specifics!

Hi and welcome to the real estate blog at Leon H Barkley Real Estate!

In the coming months, I hope to address current trends and issues in the real estate industry and I would appreciate your views and suggestions as well.

The first issue I’d like to tackle is the First Time homebuyer’s tax credit and the rules and guidelines for receiving that credit.  You can review the specific rules on the federal program on the federal government’s web site or on NAR’s (National Association of Realtors) website.  The long and short of it is that you (or your spouse) must not have owned a home for the past three years and you must close on the home before December 1, 2009.  There are many other guidelines including income levels, price of the home, and new construction rules that also apply.  Now, New York State is presenting a credit for New York State income taxes that is a bit more complicated to follow but is well worth the effort!

Stay tuned as we glide through the evolution of the First Time Homebuyer’s Tax Credit.