Newest Home Buyer Tax Credit Includes Just About Everyone November 8, 2009
Posted by Heather Goodwin in Buying A Home, First-Time Home Buyers, Home Owners, Selling A Home, Shreveport Area Market Analysis.add a comment
Congress has seen fit to extend the home buyer tax credit for about another 6 months. This time, the credit includes not just first time home buyers, but also current home owners. I’ll post a link to the details of the bill at the end, but just let me give you some insight into what I see happening in the near future.
While the first time home buyer tax credit that was in effect before this did stimulate home buying among those buyers, it did nothing to motivate existing home owners to budge from their houses. So, while it did have some effect within a limited population, it didn’t really get the ball rolling industry-wide.
It’s been NARs (National Association of REALTORS) contention all along that if you want to stimulate the economy via the housing sector via a bailout, all homeowners must be included for it to have the intended effect.
For now, I’ll skip the editorial on how this will help homeowners facing short sales or foreclosures. Here’s what I see happening in our market. Remember, real estate is local. I know the Shreveport market and can only speak to what I see happening here. (If you’re reading this from another area of the state or country, give me a shout, and I’ll link you up with a competent agent in your area.)
The best way I can tell you how this new bailout will affect homeowners and home buyers here in the Shreveport area is to say, “GET READY!!!”
If you’ve been thinking of selling your home, now is the time to spruce it up and get it on the market. There is going to be a domino affect taking place here in Shreveport as the pent up demand of move-up buyers enters the market. It’s going to start happening immediately, but I anticipate it really picking up after the holidays.
If you’ve been thinking of buying a home, now is the time to position yourself to do that. That means go talk to a lender before you do anything else. In this real estate climate, with the lenders having tightened their purse strings, it is imperative that you have a prequalification in place before you go looking for houses. It’s the first thing an agent is going to ask you.
Shreveport’s real estate market never took the hit that other areas of the country did. Our market has weathered the storm remarkably well. With this new money floating around, it’s about to take off.
If you need help getting your home ready to sell or getting your financing in order, I’ve got associates who can help. Just give me a ring, text, or email. If you’ve done the preliminaries and are ready to list or buy, I’d be happy to talk to you abour representing you in those transactions.
To learn more about how you might fit into the extended home buyer tax credit plan, go here for details.
Southeast Shreveport Home Prices by Neighborhood – October 2009 November 3, 2009
Posted by Heather Goodwin in Acadiana Place, Ellerbe Road Estates, Hidden Trace, Home Owners, Long Lake Estates, Norris Ferry Landing, Provenance, Shreveport Area Market Analysis, Southern Trace, St. Charles Place, Twelve Oaks.add a comment
October 2009 Data
This monthly feature shows the home listing and selling prices for the major neighborhoods in Southeast Shreveport. These neighborhoods are located south of Flournoy Lucas Road and east of Wallace Lake Road.
| Neighborhood Home Prices June 2009 |
Homes for Sale | Avg Active List Price | Homes Pending Sale | Avg Pending List Price | Homes Sold | Avg Sale Price | Avg Days on Mkt |
|---|---|---|---|---|---|---|---|
| Acadiana Place/Twelve Oaks | 10 | $337,760 | 0 | $– | 7 | $268,714 | 88 |
| Emberwood/Ellerbe Rd Estates | 5 | $243,558 | 0 | $– | 1 | $220,000 | 1 |
| Long Lake Estates | 9 | $484,755 | 0 | $– | 0 | $— | – |
| Norris Ferry Crossing | 1 | $212,333 | 4 | $197,224 | 3 | $202,333 | 133 |
| Norris Ferry Landing/Hidden Trace | 10 | $266,679 | 3 | $252,600 | 4 | $248,000 | 34 |
| Provenance | 6 | $357,607 | 0 | $– | 0 | $– | – |
| Saint Charles Place | 1 | $359,750 | 0 | $– | 0 | $– | – |
| Southern Trace | 11 | $559,153 | 0 | $– | 1 | $435,000 | 175 |
Go here to compare this month’s data to September’s.
The data in the table are for single family homes which includes patio homes. In the case of Provenance, it also includes townhomes. Homes for Sale is the total number of houses currently for sale in that neighborhood. Homes Pending are houses that are under contract. Homes Sold are homes that have been under contract and actually closed during the month.
MLS Data – These figures come from the Northwest Louisiana Assocation of REALTORS MLS and are deemed reliable but not guaranteed.
217 Ixworth in The Village at Tiburon, Bossier City October 30, 2009
Posted by Heather Goodwin in Buying A Home, Featured Homes.Tags: bossier city home for sale, bossier city real estate, coldwell banker bossier, ixworth avenue, tiburon, village at tiburon
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217 Ixworth Avenue
The Village at Tiburon
Bossier City, Louisiana
I just listed this home in the new north Bossier gated neighborhood, The Village at Tiburon. It’s located just north of I-220 off Swan Lake Road.
The home, which was built in 2007 by Hunter Black looks like new. It has been gently lived in and has upgrades not found in other homes in the neighborhood. This home has 1672 square feet.
There are 3 bedrooms, the master with a tray ceiling, and another bedroom with a vaulted ceiling. Plantation shutters grace all the windows. There are two baths and each have double sinks in the vanities. Of course, the master bathroom has a whirpool tub and separate shower.
Ten foot ceilings give the living area a spacious feeling while the gas start fireplace keeps things cozy. The entry, living, laundry, halls, bathrooms and kitchen have tiled flooring. Each bedroom has like-new carpet.
The kitchen is perhaps the masterpiece of this home with dark stained cabinets, granite counters, tumbled tile backsplash, and a granite topped island. The island and breakfast bar have pendant lighting. There is also a spacious breakfast area overlooking the backyard.
The asking price, $205,900, is one of the best in the neighborhood. Enjoy the photos:
How Do I Know If I Should Refinance? October 27, 2009
Posted by Heather Goodwin in Finance/Refinance, Home Owners.Tags: interest rates, mortgage stimulus 2009, refinance
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Thanks to my associate, Marshall Graham, a lender with Aulds, Horne, and White for the following information to help you decide whether refinancing is right for you in your situation.
~~~~~
The question whether to refinance or not can seem overwhelming to most. After all, we’re speaking of your number one asset! How does one know when the right time to refinance is? The mortgage industry is notoriously popular for statements such as, “My cousin Vinny said that you shouldn’t refinance until a 2% reduction in rate”. My intention is to shed some light into the mystery question, “When Should I Refinance?!”
The answer cannot be summed up as easily or as blatantly as a 1% or 2% rate differential. Why? Because a 1/8th of a percent increase in the rate of a $10 million commercial loan is a lot bigger deal than a $50,000 residential loan! The size of the loan plays a very important role in determining the rate spread necessary. The following chart, based on loan size, may be used for quick reference:
$300,000 – 3/4%
$200,000 – 7/8%
$100,000 – 1%
$75,000 – 1.5%
$50,000 – 2%
Obviously, if two people at work are discussing whether to refinance that have two completely different loan sizes, the general statement of a 1 or 2 percent differential would be mathematically skewed. The client with a loan size of $300,000 with a 1.5% rate differential would far exceed the benefit of a refinance than a client with a $50,000 balance, because many of the closing costs associated with conducting the loan are fixed, not based on loan size.
The amount of closing costs plays a key factor in determining whether or not to refinance. After all, it wouldn’t make sense to try to lower your payments $40 if your costs to do so were $9,000. It is here that one can determine a financial break-even point. The break-even point, which is defined as how many months and/or years must one reside in the property for it to be cost effective to refinance, is calculated by taking the total amount of closing costs and dividing that figure by the estimated payment reduction.
Break Even Point = (Total Closing Costs/ Estimated Payment Reduction)
The break-even point calculation assumes that only one variable is changing within the equation; the client is not moving from a 30yr to a 15yr term etc. Typically, we are finding our clients breaking even in 7 to 12 months.
Another important facet of refinances is based on the length of time one plans to remain living in the home. If a person plans on selling his or her home in 4 months, he or she definitely should not refinance. If you plan on staying in the property, (even one month) longer than the break even point, than you SHOULD refinance.
Lastly, much discussion is based on at what interest rate and when should one lock in. Personally, I am currently witnessing clients with a $200,000 + balance with a rate at 6.25% who would NEVER even consider purchasing a lottery ticket, not locking in at 4.75% with No Loan Origination Fee, because they are holding off for 4.25%?!? Are you serious? So what I’m being told is , “Marshall, a $188 reduction in my mortgage is not good enough….” Yet if that client continues to pay exactly what he’s currently paying , but instead at a rate of 4.75%, the client would reduce the term by 8 ¼ years! ($2,256 * 8.25) = $18,657. Or, take that $18,657 and invest it at a rate of 5% in the following 10 years, and you just saved $31,909……..the amount of your newborns college education. If the Haynesville Shale has taught us anything, it’s that greed can lead to nothing in the end. An old saying in poker comes to mind, “It’s better to win a small pot, than to lose a big one!”
Marshall F. Graham
Aulds Horne and White
318.869.4444
Marshall.Graham@AuldsHorneWhite.com
Do You Know How to Prepare for Home Ownership? October 19, 2009
Posted by Heather Goodwin in Buying A Home, First-Time Home Buyers, Real Estate 101.Tags: First-Time Home Buyers, shreveport home buyers
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Here, in a nutshell are the steps every home buyer should take before venturing out to look for a new home.
Decide what you can afford
Generally, you can afford a home equal in value to between two and three times your gross income. I advise to begin looking at homes in the lower end of that price range.
Develop your home wish list
Then, prioritize the features. For example, which is more important to you – the right school district or proximity to work? A remote master bedroom or a wood-burning fireplace or a large kitchen? A large fenced yard or no yard?
Select where you want to live
Compile a list of three or four neighborhoods you’d like to live in, taking into account the items you put on your wish list in the step above, area expansion plans, and safety. Drive around each one during the day and in the evening to get a feel for the neighborhood and whether it’s a good fit.
Start saving.
Do you have enough money saved to cover your down payment and closing costs? FHA loans require a 3.5% down payment, and closing costs average between 3 and 7 percent of the home price.
Get your credit in order.
Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments. There are things you can do to improve your credit score.
Determine your mortgage qualifications
How large of a mortgage do you qualify for? Also, explore different loan options with each lender you speak with to decide what’s best for you.
Get pre-approved
Organize all the documentation a lender will need to preapprove you for a loan. You will need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.
Consider other sources of help with a down payment
Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on programs for first-time buyers, or ask the lenders you talk to.
Determine the total costs of homeownership
This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.
Contact a licensed real estate professional
An experienced REALTOR®, especially one who has achieved the Accredited Buyer’s Representative designation can help guide you through the process and answer any questions that you might have along the way. And, of course, when you’re ready, they can show you the houses you’re interested in. That’s when you’ve gotten to the fun part!
