Welcome home. The fun is just beginning when first-time home buyers move in and personalize their new space.

Furnishing a new home can be expensive. Have enough funds to provide the basics and not experience short-term financial stress.
First-time home buyers who took advantage of the $8,000 tax credit program now have the experience of moving into home ownership with all accompanying responsibility and adventure. For many, this will be the first real place to call home; the urge to personalize the new “nest” is compelling.

Coming from apartments and their parents’ homes, new home owners may not realize the scope of furnishing a home with all the necessities to make the place livable, let alone lavish. According to the National Association of Home Builders, a typical homebuyer spends an average of $7,400 on their home, with more than half of that during the first year after purchase. The first order of business for new owners is to make sure at least that amount is available and won’t send the owner into a severe budget crunch. Here are some tips to make that house a real home.

Before moving, take stock of what you have and what has just become part of the scenery. Make a list of what has sentimental value and what is clutter. Moving clutter can cost a lot, either through professional moving companies or calling on friends to heave all those boxes.

After you’ve packed up your stuff, outfit and pack a basic toolbox. Many of projects you’ll do to personalize your space require tools. The basic minimum includes a hammer, screw drivers, pliers, wrenches, a tape measure and a staple gun. Hanging those new curtains loses a lot of appeal if you have to run to the hardware store in the middle to get tools. Be prepared first.

Personalizing and furnishing your new home is one of the most exciting activities for new home buyers. Before running out to purchase that super extra king size bed or several pieces of oversized living room furniture, take accurate measurements of all the rooms and use them to judge what fits and what doesn’t. After all, too much furniture in a room makes it feel small and claustrophobic. Be a fair judge of what would compliment the furniture you already have.

You’ll also need basic appliances to get started. A stove, refrigerator, washer and dryer should be energy efficient to reduce your utility bills. Spending a bit more right now makes more sense than purchasing a cheaper model that may become a problem and financial drain later on. If you are angling for an entertainment system and a huge flat screen television, check your budget first to make sure you can buy basic furnishings before such large ticket items.

Window coverings and linens are another way to express your personality, plus add security and privacy. Budget accordingly, since some new home owners don’t plan for the cost of outfitting a house with new drapes and curtains.

Garden tools will be a necessity to keep your curb appeal top notch. The basics include a lawn mower, garden hose, sprinkler, clippers, a shovel and rakes. For people moving from an apartment, this category of necessities will be a new experience.

Purchasing and personalizing your first home is a real thrill. Be creative but approach this one room at a time. As you begin feeling at home, you’ll be able to capitalize on your home’s features and blend that with your own uniqueness.

Written by Myra Vandersall

Lower interest rates now eclipse savings on the $8,000 tax credit program

Because interest rates have gone down since April 30, homebuyers can still be ahead of the game in the long run

In looking back over the past year, did you really miss the opportunity of a lifetime by not buying a home and taking advantage of that $8,000 first-time homebuyer tax credit? The program did increase home sales and nudged people off the fence if they were considering a home purchase, but some potential buyers just weren’t ready to take the plunge.
But, with interest rates lower now and no sign from the Feds that rates will rise dramatically any time soon, the opportunity for a good buy is definitely there. In fact, this might be the best time to buy.

Here’s an exciting scenario for those of you who didn’t buy: interest rates have gone down so much since April 30, the end date for the tax credit program, that the buyer of a $350,000 home, financed with a $280,000 mortgage, would have seen quite a savings by waiting until May. With April’s average rate of 5.34 percent, a homebuyer would have locked in a 30-year fixed rate loan with a monthly payment of $1,561.82.

If that buyer waited for May to roll around, with a 30-year fixed rate loan at 4.625 percent, monthly payments would be $1,439.50. Computed on an annual basis, that’s a savings of $1,467. Over the 30 years of the loan, that’s $44,003 in savings. That’s an incredibly huge incentive to jump into the housing market and really diminishes the tax credit in the long run.

But for those of you who did take advantage of the tax credit and have found it difficult to close before the June 30 deadline, there may be help. Senators Johnny Isakson (R-GA) and Harry Reid (D-NV) have offered an amendment to a house bill that would extend the closing deadline to September 30, 2010. The proposed amendment only extends the deadline to close, not to purchase. If passed, this would help a lot of buyers to still receive the tax credit and buy a home.

First-time homebuyer credit is extended for military personnel and some federal employees

The $8,000 first-time homebuyer tax credit program has been extended to allow military personnel to take advantage of this home ownership opportunity. The new deadline for qualified service members is April 30, 2011, with the property closed no later than June 30, 2011. The extension also includes the $6,500 tax credit for repeat buyers.

Qualified service members include members of the U.S. military uniformed services, the U.S. Foreign Service and employees of the intelligence community on official extended duty. The top income limits of $125,000 for single tax payers and $225,000 for married taxpayers remains the same, but other requirements have changed to accommodate military personnel. Military buyers will not have to repay the tax credit if geographically reassigned before the three-year residency requirement.

To qualify for the military tax credit:

• An individual must have serviced on extended duty inside or outside the United States for 90 days or more and at least 50 miles from the principle residence and after December 31, 2008 through May 1, 2010.
• Only one spouse must be on official extended duty to be eligible for the 2011 extension, purchase a residence and claim the tax credit.

More than 350,000 military personnel and federal employees may be affected by this extension and will be able to own a home, plus receive the income tax credit. “Congress recognized that many service members may have missed out on the home buyer tax credit due to being posted overseas,” says Bob Jones, National Association of Home Builders chairman. “It’s only fitting that our service members be given another year to take advantage of this opportunity.”

For detailed information on the military first-time homebuyer tax credit extension, go the Internal Revenue’s website.

Written by Myra Vandersall

Builder confidence increases as constructio of new homes rises in January

The federal tax credit program is a major component in the optimistic report

Builders are feeling a bit more positive and are looking toward the spring construction season to pump up sales of new single-family construction. The National Association of Home Builders reports that their market index survey results went up two points to 17, the highest level since November 2009. Regionally, the Midwest and South measured a two-point gain to 13.

NAHB chief economist David Crowe says that builders are beginning to see the results of the homebuyer tax credit combined with still low interest rates. Add the beginning of job stabilization and builders see their future with a sense of optimism.

Also on the plus side, housing construction posted an increase in January, rising to 2.8 percent with a seasonally adjusted annual rate of 591,000 units, according to the U.S. Commerce Department. That department also cites the tax credit program as a major influence for the positive uptake.

Tax credits of up to $8,000 for first-time homebuyers and $6,500 for repeat buyers will expire on June 30, 2010. To qualify the buyer must have a contract in force by April 30. Another set of tax credits is available through the stimulus program’s energy-efficient upgrades. Homeowners can receive up to a $1,500 tax credit for energy-efficient improvements, including exterior doors and windows, heating and cooling systems and insulation. That program expires on December 31, 2010.

On a statewide basis, Missouri is taking action to increase home buying with the $15 million Home Ownership Purchase Enhancement program (HOPE), which offers credits on a homebuyer’s real estate bill, up to $1,250. Energy efficiency also kicks in here; approved homebuyers may be eligible to receive an additional amount if they purchase a qualified, newly-constructed energy-efficient home; buy an existing home and remodel it; or purchase Energy-Star® appliances.

With all of these incentives, low interest rates and lower sale prices, now is the time to buy before April 30. Contact St. Charles County Real Estate - SCHNEIDER Real Estate.


Written by Myra Vandersall

$1,000 closing cost incentive offered for new home sales in St. Charles County

ST. CHARLES COUNTY, MO --- In an effort to bolster the American dream in St. Charles County, first-time home buyers and new residents planning to buy a newly constructed home could receive $1,000 in closing cost assistance through a limited incentive program offered by HOME St. Charles, a non-profit subsidiary of the Economic Development Center (EDC) of St. Charles County.

Known as the “Welcome Home Incentive Program,” this local initiative offers $500 from HOME St. Charles to qualifying new home purchasers if their banker, builder, or mortgage broker will provide a $500 match. Officials said they currently have funding to issue 20 incentive awards.
“As part of our broader economic solutions campaign, the Welcome Home Incentive Program is designed to help attract new residents, sell new homes, and impact local jobs in St. Charles County,” said EDC President Greg Prestemon. “We also hope this effort will serve as a challenge to other community groups, businesses, and organizations to encourage them to consider how they can refocus resources and programs to have an immediate and positive impact on the local economy.”

Some of the stipulations to qualify for the Welcome Home Incentive Program include:

• Must be a first-time homebuyer or new resident moving to St. Charles County
• Must have a $500 match from the builder, banker, or mortgage broker
• Must be a newly constructed single family home or previously unoccupied new single family home
• Purchase price cannot exceed $267,000
• Only home purchase contracts signed on or after July 1, 2009 will be considered

Officials said they also plan to make an effort to award the incentive to a wide variety of subdivisions and communities throughout St. Charles County.

Funds are limited and an online application is now available. Contact Jane Nicoletti for more information.

Buyers show continued confidence in the housing market. Sales, new starts are up and incentives help ease the way home.

The saying goes “Home is where the hearth is” and it looks like an increasing number of homebuyers will have their very own hearth soon. We gage confidence by the number of satisfied homebuyers who now have their very own place to feel secure, comfortable and to grow. We gage confidence by the number of home sellers who are able to sell their properties at a reasonable price and feel secure moving on to the next chapter of their lives.

But just to add numbers to our “people quotient,” the latest reports show existing home sales rose for the third consecutive month, up 3.6 percent from June to July, and prices declined less in June, according to the National Association of Realtors. The median existing single home price came in at $181,600. First-time buyers are making their mark–they rang up 29 percent of the sales and helped to increase buyer visits by 12 percent from a year ago. New home starts and permits are up too, a gain of 3.6 percent in overall starts and an 8.7 percent increase in permits.

Certainly the $8,000 first-time homebuyer tax credit has helped the housing market begin its recovery, and there are a number of other incentives out there that will help buyers feel more confident. In the St. Charles region the Economic Development Center of St. Charles County offers, through its subsidiary program HOME St. Charles, a “Welcome Home Incentive Program” to help buyers with closing costs associated with the purchase of a newly constructed single family home. This incentive is for first-time buyers or new residents moving into St. Charles County.

The initiative offers $500 to qualifying buyers who have a $500 match from the builder, banker or mortgage broker. For more information on this incentive, go to homestcharles.org, but be sure to come in to talk with us about this program and the many more incentives that make buying, selling and living in St. Charles County a great experience.

LAST CALL FOR $8,000 TAX CREDIT

It’s hard to believe that we are into the second half of 2009. What a year it’s been for the Real Estate Industry! Our area is experiencing an increase in sales and recently was named as number 8 on a list of the Top 10 cities of opportunity by Forbes Magazine:

“Best Cities for Finding Opportunity Where are the best cities to live in the United States if you want to work hard and get ahead? Forbes magazine examined the nation’s 40 largest metropolitan statistical areas and based on the number of Forbes' 400 best big companies and 200 best small companies that are headquartered in each, it identified what it considered places with the most opportunity. The magazine says it took this route because the best big companies provide opportunities for those who seek to be employees, and the rate of success of small businesses indicates how the area treats entrepreneurs.”

We have been fortunate to be in the conservative Mid-West, faring better than most US cities not only when it comes to opportunity but also home values.

One of the results of the Stimulus Package was the $8,000 Tax Credit offered to first time home buyer (those not owning a home in the last 3 years).Recently this tax credit was amended to allow the buyer to use the money for closing costs or to add additional down payment (in addition to the required 3.5% minimum down). This has really helped to stimulate sales. To take advantage of this gift a home buyer must act NOW. A home purchase must close by Nov. 30th to qualify; the home buying process has been lengthened by the careful underwriting of a loan and appraisal changes. A serious buyer should be viewing homes now and get under contract no later than September to allow time for any delays in the process. If you’ve been sitting on the fence (or know someone who has) now is the time to jump down! Interest rates are still at record lows, there is lots of inventory to choose from and home prices are lower than they have been in years. We may never see a better scenario in our life time to buy real estate. THIS IS LAST CALL to get in on the free $8,000 gift!

Professional Room Makeovers: Home & Design

These examples will make you a believer that small inexpensive changes can make a tremendous difference in the appearance of rooms in your home. This is a must see for sellers!

Professional Room Makeovers: Home & Design: REALTOR® Magazine

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Home-Sale Hassles of the Rich and Famous

Home-Sale Hassles of the Rich and Famous
Some how I just can't feel sorry for them, how about you?????

Anybody having trouble selling their home should take comfort in the fact that even celebrities are having the same problem. Here are some celebs who can't seem to sell their houses:
Jon and Kate Gosselin, co-stars of the popular TLC show "Jon & Kate Plus 8," have been trying for three months to sell their former home in Elizabethtown, Pa.
Rapper 50 Cent has given up selling his mansion in Farmington, Conn., after dropping the price from $18.5 million to $14 million.
Richard Gere and wife Carey Lowell have dropped the price on their home in New York's Hamptons from $8.8 million to $7.2 million.
Model Elle Macpherson cut the price of her London Victorian from $9.5 million to $8.5 million, and has since dropped it to $7.5 million.
Star of "Real Housewives of Orange County" on BRAVO TV Jeana Keough, also a real estate practitioner, is facing foreclosure.

Source: Chicago Tribune, Mary Umberger (06/21/2009)