Linda Hanna and Associates

Welcome to the Birmingham-Bloomfield Blog which is intended to share information and facts regarding real estate. We are Linda Hanna & Associates and are based out of Birmingham, Michigan. With over 25 years of experience and millions of home sales over the years, we are in the best position to advise the general public and other business professionals on the constantly changing details of the industry.

Friday, February 26, 2010

Hesitation Will Hurt

With many aspects of the industry changing constantly, there are some facts that the public must be aware of in order to avoid losses in real estate transactions. For example, as of April 5th, FHA will be increasing their upfront mortgage insurance premium by a half of percent from 1.75% to 2.25%. This is to help cushion their risks which they have taken in a down market. Also, FHA has many other changes in the works that will change the market. First, they will be increasing the minimum required down payment for individuals with a credit score of less than 580, to 10% from 3.5%. Next, they will be reducing the maximum amount of seller's concessions that can be received by a buyer from 6% to 3%.

These changes will strongly hinder home sales in the area. The changes will decrease the amount of buyers that are able to buy because of their seller's concessions being slashed. Seller's concessions help 1-st time and other buyers to pay for mortgage origination fees, title insurance fees, etc. This reduction will possibly force these buyers to seek assistance before being capable to buy.

Lastly, the foreclosures will be out to get us again! If you are looking to sell any property in the near future, NOW IS THE TIME! With more than 4.5 million mortgages in foreclosure or close to, the values of all homes in the area are still going to see a large hit after these properties have been placed on the market. Keep in mind, the banks have been trying to liquidate their inventory faster rather than for higher values. This means that the sellers will have a rough time maintaining their value when neighboring values are plummeting.

Monday, February 22, 2010

Tax Credit Deadline Approaching

Imagine this... an extra $6,500 or $8,000 to add equity to your new dream home! Well this is possible! Thanks to the Worker, Homeownership, and Business Assistance Act of 2009 there are tax credits of up to $8000 for qualified 1-st time buyers and up to $6,500 for qualified existing homeowners. In order to receive the credit, buyer's must have a written binding contract by April 30th and the home must be successfully closed by June 30th, 2010. Some income and purchase values are excluded from the tax credit including, but not limited to, income caps as well as the purchase price must be valued less than $800,000. The credit is received by the buyer in their normal annual tax returns. Now these homeowners can add this back into the value of their newly purchased home! Don't wait too long, aim for the tax credit deadline, and you will be ahead of the future neighborhood values! Contact us for more information!