First Time Homebuyer Credit

Help for homebuyers

First time homebuyer incentives - temporary tax credit by congress...... this $7500 credit will be available for the purchase of a principal residence - (April 9, 2008 to July 1, 2009)

This credit is limited by several things - household income, price of the home, and the buyer's tax liability. The household income requirements are generous, so most first time homeowners would qualify. The credit is for 10% of the cost of the home - if the home coast $65,000, the credit would be up to $6,500.

This is more like an interest-free loan - all purchasers who claim the credit will be required to repay it over 15 years but with no interest . (payment will be 6.67% of the credit amount each year)

This credit is not issued when you purchase the home, but rather with your yearly taxes.

Real Estate Sales - Just the Facts

Information Sources Used in Home Search

Real estate agent - 90%

Yard sign - 71%

Internet - 77%

Newspaper Home book/magazine - 37%

Open house - 52%

Builders - 41%

Television - 24%

Relocation company - 16%


For Sale By Owner (FSBO) Statistics Did you know? . . .

the typical FSBO home sold for $198,200 compared to $230,000 for agent-assisted home sales.
FSBO Methods Used to Market Home:

Yard Sign . . . 61%

Friends/neighbors . . . 46%

Newspaper ad . . . 37%

Open House . . . 29%

Internet . . . 17%

Most Difficult Tasks for FSBO Sellers:

Getting the right price . . . 14%

Understanding paperwork . . . 17%

Preparing/fixing up home for sale . . . 16%

Attracting potential buyers . . . 9%

Having enough time to devote to all aspects of the sale . . . 8%

Home Buyer & Seller Statistics Active home search (median):

Number of Weeks Searched - 8

Number of Homes seen -9

Method of Home Purchase: Agent/Broker - 77%

Builder - 12%

Direct from previous owner - 9%

Definitely would use same agent again: 66%

Actions taken as result of using Internet site:

Drove by/viewed a home - 75%

Walked through a home viewed online- 57%

Found agent used to search/buy home - 21%

Prior Living Arrangement Owned previous residence- 46%

Rented an apartment or house - 41%

Lived with parents, relatives or friends- 10%

Source: 2005 National Association of REALTORS® Profile of Homebuyers and Sellers

America's Housing Sector and the Economy

In 2001, existing home prices appreciated at a rate of 6.3%, the largest increase in over a decade. The majority of studies indicate that households spend 30-40% of their disposable income on housing-related expenses. These expenditures assist in supporting other sectors of the economy. Nearly 70% of all tax revenues raised by local governments in the US derive from property taxes. Homeowners contribute roughly 43% of property taxes, and commercial property taxes contribute the remaining 57%. The National Association of Home Builders estimates that the construction of 1,000 single-family homes generates 2,448 full-time jobs in construction and related industries, $79.4 million in wages and $42.5 million in combined local, state and federal revenues and fees.

Source: The Importance of America's Housing Sector to the Economy. On Common Ground, Winter 2003.
In 1995, just 2% of home buyers used the Internet to look for a home. Last year, 77% of home shoppers went house-hunting online, and nearly one-fourth of buyers first found the property they bought on the Internet, according to the National Association of Realtors. Traffic on real estate websites jumped 8% in the past year — double the growth rate of Internet traffic overall, according to comScore Media Metrix.
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Sales Heading Up

Sales Heading Up according to Realtor Magazine! After months of downward movement, residential sales rose 0.4% in November.

The EHS (existing home sales) was 5.0 million ---- this is figured by taking the

month's actual rate of sales, multiplied by 12 and adjusted for seasonal sales difference.

Pending home sales index was 87.6 --- this measures housing contract activity. An index of 100 is equal to the level of activity during 2001, the benchmark year.

These stats seem to be in line with what we are experiencing at Lauralei Propeteries in St. Louis. While everyone says how slow it is, our real estate business have been consistently steady.

Also remember we offer choices most real estate companies don't offer: you can list your home on the MLS for $195 - get exposure for your home and STILL sell your home FOR SALE BY OWNER!

We help you throughout the whole process! From contract to close!

check out our website - we offer the FLAT FEE mls listing, and a discounted 4.7% listing!

lauralei.net

Laura Ludwig

Lauralei Properties, llc

314-503-1186

Energy Saving Home Owner Tips

SAVE ON YOUR ENERGY BILLS THIS YEAR!

I received this handy little sticker pack with my Ameren UE electric bill - one sticker for each month with energy tips:

JANUARY - Open south-facing drapes to allow sunlight in during the day; close them at night.

FEBRUARY - Fluorescent task lightning, rather than overhead, saves energy.

MARCH - 3/9 Daylight savings time begins. Turn the clocks forward one hour.

APRIL - To conserve heat, run exhaust fans for 20 minute at a time.

MAY - Have your AC serviced before running this summer; it will be more efficient

JUNE - Seal up air leaks around your home - keep the cool air in.

JULY - Consider CFSs (compact flourescent) as an alternative to regular light bulbs to save energy

AUGUST - Move large appliances away from thermostats; they will register the heat and run more frequently

SEPTEMBER - Schedule Yearly maintenance on your furnace

OCTOBER - Weather stripping around windows and doors helps conserve heat

NOVEMBER - 11/2 Daylight savings time ends - turn the clocks back one hour

DECEMBER - Plug small appliances into a power strip; turn everything off at once to save watts

Real Estate vs. the stock market

Here are reasons why you get more for your money with a house than the stock market.

****Leverage: with stocks, you put in all your money for a little piece of a company. With a house, you put in a little money to get all of the house.

****Tax benefits: think about the benefits of fixed-rate mortgages, property tax write-offs, interest rate deductions, depreciation.


****Control: With a home, you have control - what you buy, how much you pay, and where you live. You can improve the value with repairs and updates. Stocks are less controlable.

****Lifestyle: With a home, you're purchasing for yourself and your family. The neighborhood you want to be in, the size and style home that fits your needs. And the more wisely you choose, the better off you are.

****Value: Unlike stocks, your house will seldom become worthless. Barring a catastrophe, your home will retain a major portion of its value, even in the worst of times. So don't get stressed out about losing a few percent this year. You'll make it up.

Remember, when you own a home, you own something tangible - if the market looks bleak, you still have a place to sleep. With the stock market if things go really down hill, you can be wiped out

Owning a home is a good investment.