Home Buyers Who Missed 8,000 Dollar Tax Credit Coming Out Ahead By Jim Weiker
RISMEDIA, June 29, 2010—(MCT)—Home shoppers who missed the April 30 deadline for a housing tax credit might have the last laugh. For a variety of reasons, they could end up saving more than the $8,000 they could have received from the tax refund.
In some neighborhoods and price ranges, sellers are dropping their prices because buyers are harder to find now that the credit has expired. Builders and real estate companies began offering promotions after the tax credit ended that, in many cases, are worth more than the credit.
Interest rates have dropped enough since the credit deadline that, over the life of a loan, a homeowner could easily save more than the value of the credit. “I think some folks possibly could have benefited from waiting until after the tax credit,” said Joe Jackson, a real estate agent with Keller Williams Capital Partners. “It would depend on the price point they were buying in and the market they were looking in.”
Home sales leapt in March and April during the waning weeks of the credit, especially for homes priced at less than $200,000, which appealed to first-time home buyers. Since the credit expired, home contracts and building permits have tapered off, leaving sellers with fewer buyers and, in some cases, little choice but to cut their price.
According to real estate website Trulia.com, which tracks price reductions, 30% of central Ohio homes for sale on May 1 had reduced their asking price—more than in April or March. Buyers hope they can take advantage.
Karen Kosnikowski learned days after the tax credit ended that she would have to leave her Victorian Village apartment June 30 because her landlord wanted the place. Her initial frustration at missing the tax credit changed when she started seeing price declines. “I would say five or 10 times a day, something comes in, and half of those are price drops. Sometimes, they are down several thousand,” Kosnikowski said. “So places I’ve seen before are starting to drop, or others are coming into my price range.”
A home in the Clintonville neighborhood she has toured twice, for example, dropped in May from $185,000 to $167,900. Another Clintonville home on her radar dropped from $179,900 to $167,000 after the credit expired, while a Downtown condo she visited went from $189,900 to $169,500.
“None of these went anywhere during the tax credit,” said her agent, Terry Penrod of Real Living HER. “So Karen can just wait to see how low they go.”
Kathy Shiflet, an agent in the Dublin-Hilliard office of Coldwell Banker King Thompson, has found the same thing. She represents a buyer looking for a two-story home in Hilliard. After the tax credit expired, one of two homes under consideration dropped from $156,900 to $149,900 while the other dropped from $154,900 to $149,900.
The tax credit might have something to do with it, but Shiflet thinks the season is a greater factor. “There have been reductions in prices, but traditionally, prices start to come down in June anyway,” she said, “because everyone wants to move in time for school.”
Those shopping for new homes are finding a different kind of bargain as some builders roll out incentives to keep traffic moving.
After the credit expired, Dominion Homes and Fischer Homes launched promotions for free finished basements and/or other upgrades. Either deal would be worth well above the $8,000 credit. “We expected a drop in traffic after the tax credit expired, and we saw that a little bit,” said Jon Jasper, who manages the Columbus division of Fischer Homes. “We anticipated that, and we had strategized to offer some incentives to bring people back. That promotion we’re offering with the free basement is huge in this market.”
Other builders are offering free appliances, trade-in programs, rebates and “sweat-equity” discounts that allow a homeowner to drop the price by painting, landscaping or otherwise helping to finish their home.
Mike Marshall, an agent with Buyer’s Resource Realty Services, said he represented one buyer who deliberately passed on the tax credit to wait for a better deal on a new home. “They found a new build that was so much better in price with the discounts that they gave up the tax credit,” Marshall said.
Real estate companies are also getting into the act. To compensate for the vanishing tax credit, Coldwell Banker launched its Buyer Bonus Program that awards up to $8,000 back to buyers from participating sellers.
Finally, interest rates have dropped nearly half a point since the end of April, saving buyers thousands of dollars over the life of a loan. Buyers of a $180,000 home who borrowed $173,700 in mid-April at an interest rate of 5.125% would have paid $377,442 over the next 30 years—$15,000 more than they would pay if they borrowed last week at an interest rate of 4.75%.
“I know it’s not money in your pocket right away,” said Barb Wilson, the head of mortgage lending at Newark-based Park National Bank, “but the value of the interest rate today is really better than the tax credit.”
Some real estate experts see the central Ohio housing market now settling into a normal rhythm in the absence of the stimulus, which so far has cost taxpayers $18.7 billion.
RE/MAX Metro Luau
This is a reminder that we will be having a Luau next Wednesday the 23rd at 11:30. I hope to see you all there!Also, we will be bringing the RE/MAX hot air balloon to Syracuse on June 26th!!!
Something to Think about...
The Coffee
A group of alumni, highly established in their careers, got together to visit their old university professor. Conversation soon turned into complaints about stress in work and life. Offering his guests coffee, the professor went to the kitchen and returned with a large pot of coffee and an assortment of cups - porcelain, plastic, glass, crystal, some plain looking, some expensive, some exquisite - telling them to help themselves to the coffee.When all the students had a cup of coffee in hand, the professor said: "If you noticed, all the nice looking expensive cups were taken up, leaving behind the plain and cheap ones. While it is normal for you to want only the best for yourselves, that is the source of your problems and stress. Be assured that the cup itself adds no quality to the coffee in most cases, its just more expensive and in some cases even hides what we drink. What all of you really wanted was coffee, not the cup, but you consciously went for the best cups... and then began eyeing each others cups.Now consider this: Life is the coffee, and the jobs, money and position in society are the cups. They are just tools to hold and contain Life, and the type of cup we have does not define, nor change the quality of Life we live. Sometimes, by concentrating only on the cup, we fail to enjoy the coffee."~author unknown
A group of alumni, highly established in their careers, got together to visit their old university professor. Conversation soon turned into complaints about stress in work and life. Offering his guests coffee, the professor went to the kitchen and returned with a large pot of coffee and an assortment of cups - porcelain, plastic, glass, crystal, some plain looking, some expensive, some exquisite - telling them to help themselves to the coffee.When all the students had a cup of coffee in hand, the professor said: "If you noticed, all the nice looking expensive cups were taken up, leaving behind the plain and cheap ones. While it is normal for you to want only the best for yourselves, that is the source of your problems and stress. Be assured that the cup itself adds no quality to the coffee in most cases, its just more expensive and in some cases even hides what we drink. What all of you really wanted was coffee, not the cup, but you consciously went for the best cups... and then began eyeing each others cups.Now consider this: Life is the coffee, and the jobs, money and position in society are the cups. They are just tools to hold and contain Life, and the type of cup we have does not define, nor change the quality of Life we live. Sometimes, by concentrating only on the cup, we fail to enjoy the coffee."~author unknown
WORDS TO LIVE BY...
Always do right - this will gratify some and astonish the rest.
Mark Twain
Be absolutely clear about who you are and what you stand for. Refuse to compromise.
Be absolutely clear about who you are and what you stand for. Refuse to compromise.
Brian Tracy
Every worthwhile accomplishment, big or little, has its stages of drudgery and triumph; a beginning, a struggle and a victory.
Every worthwhile accomplishment, big or little, has its stages of drudgery and triumph; a beginning, a struggle and a victory.
Ghandi
The person who gets the farthest is generally the one who is willing to do and dare. The sure-thing boat never gets far from shore.
The person who gets the farthest is generally the one who is willing to do and dare. The sure-thing boat never gets far from shore.
Dale Carnegie
The difference between a successful person and others is not a lack of strength, not a lack of knowledge, but rather in a lack of will.
The difference between a successful person and others is not a lack of strength, not a lack of knowledge, but rather in a lack of will.
Vincent T. Lombardi
Keep in mind that neither success nor failure is ever final.
Keep in mind that neither success nor failure is ever final.
Roger Ward Babson
Be helpful.When you see a person without a smile, Give him yours.
Be helpful.When you see a person without a smile, Give him yours.
Zig Ziglar
Make a habit of dominating the listening and let the customer dominate the talking.
Make a habit of dominating the listening and let the customer dominate the talking.
Brian Tracy
LET'S MAKE THIS THE BEST WEEK OF THE YEAR!!!
Watch RE/MAX Metro Grow!
We would like to Welcome the RE/MAX Community network to RE/MAX Metro. We are excited to merge our companies and look forward to working together in the South Ogden/Weber Co. areas. Welcome to RE/MAX Metro...Ada Sierra, Amy Gladwell, Bill Haaser, Brenna Jackman-Allred, Bruce Hazen, Crystal Pust, Don Patton, Doug & Jamie Lythgoe, Erin Menard, Eva Vincent, Gary James, Henry Ihrig, Jeremy Summers, Linda & Ron Bexell, Maria Gahan-Broman, and Scott Teeples.
ENCOURAGEMENT CORNER...
Why Not You?
By Steve Maraboli
Today, many will awaken with a fresh sense of inspiration. Why not you?
Today, many will open their eyes to the beauty that surrounds them. Why not you?
Today, many will choose to leave the ghost of yesterday behind and seize the immeasurable power of today. Why not you?
Today, many will break through the barriers of the past by looking at the blessings of the present. Why not you?
Today, for many the burden of self doubt and insecurity will be lifted by the security and confidence of empowerment. Why not you?
Today, many will rise above their believed limitations and make contact with their powerful innate strength. Why not you?
Today, many will choose to live in such a manner that they will be a positive role model for their children. Why not you?
Today, many will choose to free themselves from the personal imprisonment of their bad habits. Why not you?
Today, many will choose to live free of conditions and rules governing their own happiness. Why not you?
Today, many will find abundance in simplicity. Why not you?
Today, many will be confronted by difficult moral choices and they will choose to do what is right instead of what is beneficial. Why not you?
Today, many will decide to no longer sit back with a victim mentality, but to take charge of their lives and make positive changes. Why not you?
Today, many will take the action necessary to make a difference. Why not you?
Today, many will make the commitment to be a better mother, father, son, daughter, student, teacher, worker, boss, brother, sister, & so much more. Why not you?
Today is a new day!
Many will seize this day. Many will live it to the fullest.
Why not you?
WORDS TO LIVE BY...
Ambition is enthusiasm with a purpose
-- Frank Tyger
Choosing to be positive and having a grateful attitude is going to determine how you're going to live your life. -- Joel Osteen
The reactionary is always willing to take a progressive attitude on any issue that is dead. -- Theodore Roosevelt
The best job goes to the person who can get it done without passing the buck or coming back with excuses.
-- Napolean Hill
If a person gets his attitude toward money straight, it will help straighten out almost every other area in his life. -- Billy Graham
Keep away from those who try to belittle your ambitions. Small people always do that, but the really great make you believe that you too can become great.
-- Mark Twain
The very substance of the ambitious is merely the shadow of a dream.
-- William Shakespeare
Be more concerned with your character than your reputation, because your character is what you really are, while your reputation is merely what others think you are. -- John Wooden
By Steve Maraboli
Today, many will awaken with a fresh sense of inspiration. Why not you?
Today, many will open their eyes to the beauty that surrounds them. Why not you?
Today, many will choose to leave the ghost of yesterday behind and seize the immeasurable power of today. Why not you?
Today, many will break through the barriers of the past by looking at the blessings of the present. Why not you?
Today, for many the burden of self doubt and insecurity will be lifted by the security and confidence of empowerment. Why not you?
Today, many will rise above their believed limitations and make contact with their powerful innate strength. Why not you?
Today, many will choose to live in such a manner that they will be a positive role model for their children. Why not you?
Today, many will choose to free themselves from the personal imprisonment of their bad habits. Why not you?
Today, many will choose to live free of conditions and rules governing their own happiness. Why not you?
Today, many will find abundance in simplicity. Why not you?
Today, many will be confronted by difficult moral choices and they will choose to do what is right instead of what is beneficial. Why not you?
Today, many will decide to no longer sit back with a victim mentality, but to take charge of their lives and make positive changes. Why not you?
Today, many will take the action necessary to make a difference. Why not you?
Today, many will make the commitment to be a better mother, father, son, daughter, student, teacher, worker, boss, brother, sister, & so much more. Why not you?
Today is a new day!
Many will seize this day. Many will live it to the fullest.
Why not you?
WORDS TO LIVE BY...
Ambition is enthusiasm with a purpose
-- Frank Tyger
Choosing to be positive and having a grateful attitude is going to determine how you're going to live your life. -- Joel Osteen
The reactionary is always willing to take a progressive attitude on any issue that is dead. -- Theodore Roosevelt
The best job goes to the person who can get it done without passing the buck or coming back with excuses.
-- Napolean Hill
If a person gets his attitude toward money straight, it will help straighten out almost every other area in his life. -- Billy Graham
Keep away from those who try to belittle your ambitions. Small people always do that, but the really great make you believe that you too can become great.
-- Mark Twain
The very substance of the ambitious is merely the shadow of a dream.
-- William Shakespeare
Be more concerned with your character than your reputation, because your character is what you really are, while your reputation is merely what others think you are. -- John Wooden
Step Away From The Blackberry...10 BlackBerry Commandments
Are you addicted to your mobile phone like I am? When you are not in the office is your phone attached to you and do you check it every 15 or 20 minutes to see if a call or email came in? As much as I love all of the technology available to help us grow our businesses, sometimes I wonder if we are too accessible. I mean people did buy and sell homes even before there were Blackberrys and IPhones. Real estate was a big business even before fax machines. The point is that when it comes to technology we must make a concerted effort to disconnect ourselves every once and a while. In this vein, I found a short article which lists the 10 BlackBerry Commandments. If we adopt even a few of these rules in our lives, it will result in richer relationships with friends and family, while at the same time offering us a small but much needed respite from our stressful careers. I hope you take something away from today's article. As always, I am dedicated to enriching the lives and businesses of the best real estate agents around.
Are your children jealous of the time you spend with your PDA? Step away from the BlackBerry - at least every once in a while.
By Joey Reiman
1. Thou shalt not take the BlackBerry to any table with food on it or family around it. A BlackBerry is not a fruit, nor does it come from a tree.
2. Thou shalt not use the BlackBerry as reading material in the event of insomnia. It will only worsen your situation.
3. Thou shalt not BlackBerry in lieu of responding to a child's request (e.g., "Wait a second, I'm reading something.").
4. Thou shalt not place the BlackBerry within distance of hearing its incessant beeps while at home. It is not a bird.
5. Thou shalt not check BlackBerry as if it were your baby. It will not cry or stop breathing.
6. Thou shalt not confuse number of e-mails with self-worth.
7. Thou shalt do everything possible to misplace your BlackBerry while at home on the weekends. "There's No Place Like Home" will never be the tagline for the BlackBerry company.
8. Thou shalt remember that a BlackBerry is not a body appendage. It is a device that belongs in your briefcase or on your desk, and not in social settings.
9. Thou shalt refrain from bringing the BlackBerry to events involving family interaction. Extraneous dialogue with this contraption in lieu of real conversation suggests addiction.
10. Thou shalt never, ever, ever bring the BlackBerry to bed. Do this and you are BlackBuried!
Are your children jealous of the time you spend with your PDA? Step away from the BlackBerry - at least every once in a while.
By Joey Reiman
1. Thou shalt not take the BlackBerry to any table with food on it or family around it. A BlackBerry is not a fruit, nor does it come from a tree.
2. Thou shalt not use the BlackBerry as reading material in the event of insomnia. It will only worsen your situation.
3. Thou shalt not BlackBerry in lieu of responding to a child's request (e.g., "Wait a second, I'm reading something.").
4. Thou shalt not place the BlackBerry within distance of hearing its incessant beeps while at home. It is not a bird.
5. Thou shalt not check BlackBerry as if it were your baby. It will not cry or stop breathing.
6. Thou shalt not confuse number of e-mails with self-worth.
7. Thou shalt do everything possible to misplace your BlackBerry while at home on the weekends. "There's No Place Like Home" will never be the tagline for the BlackBerry company.
8. Thou shalt remember that a BlackBerry is not a body appendage. It is a device that belongs in your briefcase or on your desk, and not in social settings.
9. Thou shalt refrain from bringing the BlackBerry to events involving family interaction. Extraneous dialogue with this contraption in lieu of real conversation suggests addiction.
10. Thou shalt never, ever, ever bring the BlackBerry to bed. Do this and you are BlackBuried!
RE/MAX Named Top Military Friendly Employer
For the second consecutive year, RE/MAX is listed among the top 2 percent of U.S. companies that have made a commitment to America’s veterans and military families. RE/MAX was named to the “2010 Top 100 Military Friendly Employer” list by G.I. Jobs magazine. RE/MAX was the only real estate company represented in the Top 100, a list that was narrowed down from more than 5,000 companies that have generated at least $500 million in revenue.
“It’s been a privilege to have the opportunity to hire those who serve our country,” said Dave Liniger, RE/MAX Chairman and Co-Founder. “RE/MAX recognizes the unique skills of our dedicated servicemen and women, and is pleased to help them find rewarding careers in the real estate industry.”
Companies were judged on criteria that included the percentage of new hires with prior military service, and also their policies toward National Guard and Reserve service. Many RE/MAX employees and top ranking officers, including Dave Liniger, have served on active duty in the military.
RE/MAX promotes military hiring to its offices through the innovative employment program, Operation RE/MAX. Along with helping military personnel find jobs in real estate, RE/MAX has also made a specific commitment to helping military spouses and has been featured on the “Top Ten Military Spouse Friendly Employer” list by Military Spouse magazine the last three years.
"Military families make sacrifices for us each and every day," added Liniger. "Providing career opportunities to military spouses recognizes their sacrifice, but also provides income and security for their whole family."
As a result of the success of the program, RE/MAX was honored with the Office of the Secretary of Defense Exceptional Public Service Award in 2007. The prestigious award is one of the highest given to civilians, and was presented to Gail Liniger, Vice Chairman of the Board and Co-Founder, in a special Pentagon ceremony.
RE/MAX is joined on the G.I. Jobs Top 100 list by other high-profile organizations such as ITT, General Electric, Bank of America, and Waste Management.
“It’s been a privilege to have the opportunity to hire those who serve our country,” said Dave Liniger, RE/MAX Chairman and Co-Founder. “RE/MAX recognizes the unique skills of our dedicated servicemen and women, and is pleased to help them find rewarding careers in the real estate industry.”
Companies were judged on criteria that included the percentage of new hires with prior military service, and also their policies toward National Guard and Reserve service. Many RE/MAX employees and top ranking officers, including Dave Liniger, have served on active duty in the military.
RE/MAX promotes military hiring to its offices through the innovative employment program, Operation RE/MAX. Along with helping military personnel find jobs in real estate, RE/MAX has also made a specific commitment to helping military spouses and has been featured on the “Top Ten Military Spouse Friendly Employer” list by Military Spouse magazine the last three years.
"Military families make sacrifices for us each and every day," added Liniger. "Providing career opportunities to military spouses recognizes their sacrifice, but also provides income and security for their whole family."
As a result of the success of the program, RE/MAX was honored with the Office of the Secretary of Defense Exceptional Public Service Award in 2007. The prestigious award is one of the highest given to civilians, and was presented to Gail Liniger, Vice Chairman of the Board and Co-Founder, in a special Pentagon ceremony.
RE/MAX is joined on the G.I. Jobs Top 100 list by other high-profile organizations such as ITT, General Electric, Bank of America, and Waste Management.
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