Homebuyer Tax Credit - Extended and Expanded

Today the US Senate and House of Represenatatives both agreed to extend and expand the tax credit unil April 30, 2010. Obama is expected to sign the bill into effect within the next few days. There are a few changes from the original credit which was supposed to expire October 3oth. Now current homeowners who have lived in their residence for consecutively for 5 of the previous 8 years are eligible. Also, the income limits have increased, so those with slightly higher incomes may apply. A full list of rules is provided in the link below. Call me if you would like further details. http://www.realtor.org/fedistrk.nsf/files/government_affairs_tax_credit_ext_chart_110409.pdf/$FILE/government_affairs_tax_credit_ext_chart_110409.pdf

So you think you know where your kid is going to school?

Navigating your way through the public school system today requires a GPS. Back when I was a kid, it was simple. I lived in a school boundry, I went to the neighborhood school. Today you can't be too sure that even if you live in what you think is the school boundry, your kid will attend that school. Don't be so sure.

For example, there is the ever so popular "Sunset Elementary" in Coral Gables on Sunset Drive. Even if you live around the block from that school, there is no automatic enrollment, but there is "controlled open enrollment" with two other schools: Carver Elementary and Coral Gables Elementary. What this means is that if you live in that boundry where there are 3 schools to choose from, you can put your first choice, but the final decision is determined by the computer model. We are told that if you live closer to one, you have a better chance - but there are no guarantees.

Today students have many options when it comes to middle and high school. Besides the magnet schools which allow students who excell in a particular area to attend specialized programs, there is now the "Career Pathways Consortium" program which is designed to guide students towards a successful career. Students pick a "pathway" starting early as 8th grade so they could choose their curriculum, which in turn determines the availabity. Students may then travel to the school with their program. There are many study areas but the targeted programs for the 2009-10 school year include aviation maintenance, animal technology, environmental resources, plant biotechnology, finance, allied health assisting, new media technology and engineering technology. The idea behind these programs is to help students either jump right into the South Floirda work force or to get in many cases, college credits from Miami-Dade while attending high school. About 40% of high school seniors end up at Miami Dade College after graduation. The program helps educate students about and towards their career choice.

Here in Miami-Dade County, we have the 4th largest school system in the United States. There are many new exciting programs and areas of study in which students can particiapte. Today kids have to get an early start and work hard in order to apply and attend the programs they are interested in. It seems like a lot of pressure, but the kids who do their homework will outpace those who don't. The grade given to a school (being an "A" school, for example) is no longer determined by FCAT scores alone. For more information on schools in your area, go to http://www.dadeschools.net/ or for performance reports for specific schools, go to http://curriculum.dadeschools.net/reports.htm.

Is Columbus Day Really A Holiday???

Columbus Day was coming, which jogged my memory to think about how I never got that day off while in my previous corporate job, so I didn't feel that taking the day off now was the right thing to do. As a Realtor I seem to work many weekend days anyhow, so what is another holiday, right?

My bank was open, and everything seemed to be business as usual. I still had to drive 15 mph by my house for the school zone. Sure didn't' feel like a holiday to me. But then, there is the whole question about counting business days... do we count it or not? The bank teller told me that even though I could deposit a check, withdraw money, and speak to the bank on Columbus Day, the bank won't count that as part of their 5 day check hold because "It's a holiday".

While talking to one of my colleagues about a contract we have on a property, he said the buyer has an 8 day inspection period "not counting weekends or holidays". The big debate was - to count or not to count Christopher Columbus (day). I recently saw a program on the History Channel speaking of a theory that the Vikings actually set foot on America more than 500 years before Columbus. I am not about ruining traditions. We still have Thanksgiving, where we can remember to be grateful for what we have. What are your thoughts about Columbus Day? Many here flock to the bay for the Columbus Day Regatta, so there is a good tradition to be celebrated.

Coral Gables Estate Sale in South Gables!

Fantastic Buy of the Week!

This is an amazing opportunity - deals like this don't come up often in this neighborhood, nestled between Hardie Avenue and Sunset Drive in Coral Gables. Fully renovated, this house would sell around $800,000. We are offering this property for sale for $588,000. The construction is solid and the roof is in good condition. It could use cosmetic remodeling - the kitchen is out of date, and the bathrooms are older - formica and older tile. The floors are original terrazzo, but they could be honed and preserved to their original luster. This is a 3/2 with 2 car garage and 2,257 square feet sitting on a 14,207 square foot corner lot. Below is a link with more property photos. Only on the market for 1 day, we have already had 7 showings - but it's not too late - at least right now! Hurry as it will sell soon.

http://lisafox.com/Miami,_Coral_Gables,_Pinecrest,_Palmetto_Bay,_Coconut_Grove_listings/E97DCEA6-C694-8AF7-3B0E9922D9979F42.shtml

Is there really an 8 second rule when it comes to first impressions?

I remember listening to one of those Miami morning talk shows a while ago and the DJ was talking about the 8 second rule pertaining to relationships. He said according to “a study”, women basically size up a potential mate within the first 8 seconds. By then, a woman potentially has already decided whether or not she would ever have a sexual relationship with him.

So, why do I bring this up? Fast forward to September 16, 2009, a friend told me she wanted to have her house perfect for buyers because of the “8 second rule” in real estate. Immediately remembering that morning show episode I thought to myself, “What is this 8 second rule in real estate, and why have I not heard of it?” Is this like the 80/20 rule, which gets applied towards everything in life? You know, 20% of the people do 80% of the work, etcetera. So now we have an 8 second rule?

That night I went on-line and searched for the 8 second rule, and I found a rule! Basically what the 8-second rule says is that if it takes longer than 8 seconds for a computer to open up a web file, we will go elsewhere! Does this mean that our attention span now lasts for only 8 seconds? How long are you willing to wait for a web page to come up? If you are a buyer and walk into a house, are you going to walk out after 8 seconds? Or will you make it to the master bathroom with Jacuzzi Tub? I have never seen anyone walk out in 8 seconds, but I have had customers not want to go inside after a "drive-by". So there you have it... I suppose there is an 8 second rule, and we need to have our "curb appeal" in check before putting the house on the market. And... don't judge a book by it's cover, ladies.

Are you "under water" or thinking of a "short sale"?

A short sale is when a property is sold "short" or sold for less than what is owed on the mortgage. The most common use of the term refers to a bank short sale, where the bank agrees to reduce the loan payoff amount. In this case, the bank accepts less than what is owed, and at the same time, the seller is not allowed to make any profit on the sale. Many who have purchased or refinanced and have taken money out of the property may find themselves owing more on the loan than what the property is worth today.

Qualifying for a short sale may be tedious, while each lender has its own guidelines. Cases are evaluated on an individual basis. General requests to the owner include a "hardship letter" to be written by the property owner, several months of bank account statements, 2 years of tax returns, and a financial statement. Most lenders won't even consider a short sale unless there is an actual offer on the table. Some good explanations for hardship include a lack of ability to make the payments due to loss of income or other financial hardship or forced reason for a sale. The bank will consider granting the short sale if the offer on the table is at or close to market value and if they would rather unload the property then deal with a foreclosure down the line. They are considered especially if the property is already in default.

Today in Miami-Dade County, there are 9,248 single family homes listed for sale in the MLS, with 3,371 (or 1/3 of the properties) being offered as "short sales". Only 502 of the single family home listings are actually listed as bank owned foreclosures. The short sale process is very slow, often taking 3 months minimum to hear a response from the bank after an offer is submitted. But the silver lining is that we are starting to see more short sales actually close, so the wait is becoming worthwhile if one really wants a certain property. If you are considering selling or buying a short sale, it is wise to have an agent (like myself) who is experienced in this arena. Stay tuned for more on this subject at a later date.

A Good Reason To Take Action Now with Interest Rates!

Interest rates for a 30 year fixed loan have once again edged down this week, averaging around 5.07%. While this is still higher than the record low rates we saw last spring, this is an extremely attractive rate for those considering purchasing or refinancing an existing loan. According to Michael Larson, an interest rate and real estate analyst with Weiss Research, rates should stay low for another month or two as the government efforts remain in effect. The Federal Reserve has been spending $1.25 trillion on mortgage-backed securities in order to prop up the housing market by keeping interest rates low. That money is set to run out by Winter, and then there may be other efforts to allow the program to last longer or so that we don't see a sharp increase in interest rates (like we have seen with gas prices in the past). Interest rates should increase gradually.

Borrowers have been seizing the opportunity, with mortgage refinancing applications up 22.5% for the week ending Sept. 4Th. Applications for new home financing was up 9.5%. Despite low interest rates, qualifying for a loan is still tough as the lenders have higher qualifying standards. All rates are not created equal. When shopping for a loan, I often tell my clients to shop "apples to apples". Make sure you are checking the same type of loan between lenders, and ask them if any or how many points are to be paid at closing to qualify for a specific rate. I always advise people to compare closing costs between lenders. Mortgage rates not only signify how much your payment will be, but are in effect a direct correlation to how much one can qualify for. While home prices may possibly edge down further - although I am seeing a large stabilization of prices, interest rates will climb and the net effect will be a similar "property cost" to a buyer.