Keller Williams Realty - Greeley Colorado

Following in the footsteps of its counterpart Fannie Mae, Freddie Mac is offering a summer sales promotion for buyers who purchase a home from its inventory of foreclosures or HomeSteps properties. Since banks typically sell foreclosures “as-is” without incentives, warranties, or repairs, this incentive could help buyers view a HomePath property more like a traditional sale, and less like a distressed property, during their search process.

For offers received by July 31 that close by September 30, Freddie Mac is offering:

• 3.5% in closing costs to buyers
• $1,200 bonus to buyer agents

This is on top of the incentives already being offered:

• A two year HomeProtect Home Warranty
• Up to 30% savings on new appliances

Note that this program comes with a few eligibility requirements, which includes the home must be a single-family, owner-occupied, financed dwelling used solely for residential purposes.

Source: Keller Williams Realty “This Month in Real Estate,” released June 2011; www.HousingWire.com

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Posted By: Keller Williams Realty of Northern Colorado – Greeley Real Estate Agents,
specializing in Greeley Real Estate and Northern Colorado Real Estate
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970.353.6677

By Ron Stevens, CRS Keller Williams-Greeley

Real estate agents around the country are urging potential home buyers to act without delay.  That is because interest rates, while still very low, have begun to rise, underwriting standards are becoming more stringent with tougher regulations to come and the Government is expected to announce plans to exit the loan guarantee business.

Secretary of the Treasury Tim Geithner has just presented before Congress three scenarios to accomplish this goal.  Under the first scenario, the Federal Government would work to gradually abolish Fannie Mae and Freddie Mac, leaving only FHA Government insured loans.

The second option calls for having the Government insure loans through Fannie Mae and Freddie Mac only as an insurer of “last resort”.  While clarification of this option is yet to come, one thing is certain:  Government insured loans would be much tougher to get under this proposal.

The final proposal is to leave the present system mostly intact, with modest tightening of the guidelines.  This would have the least impact on loan availability, although underwriting standards and loan costs are still expected to rise.

During a meeting with the Congressional Leaders on August 17, 2010, Secretary Geithner made some telling comments.  He said, “It is not tenable to leave in place the system we have today” When pressed, he said, “We will not support returning to Fannie and Freddie to the role they played before conservatorship.”

Home buyers should take note.  It is doubtful that interest rates and loan costs will be lower in the coming months as additional regulation adds to the cost of doing business.  And the pouring of more and more money into the economy, a practice known as quantitative easing, “is a prime factor into the expected continuing rise of interest rates.”  The best time to act may be now.

Ron Stevens, CRS is a Broker Associate with Keller Williams-Greeley.  He is celebrating 26 years of real estate practice.  He can be reached at:  http://ronstevens.yourkwagent.com

Tax season is nearing! On December 17, a $858 billion tax bill was signed into law, keeping income tax rates from increasing before the new year.

The legislation …

• Extends the Bush-era income tax cuts on income, capital gains, and dividends for two years.
• Reduces Social Security payroll tax rates by 2% for one year on income up to $106,800.
• Extends jobless benefits for 13 months.
• Allows businesses to write off 100% of capital investments between September 9, 2010 and December 31, 2011.
• Extends dozens of expired and expiring tax breaks, including a research and development tax credit and a college tuition tax credit that was created in last year’s economic stimulus law.
• Sets the estate tax rate at 35% for two years and would apply it only to estates worth more than $5 million. Under current law, the estate tax has lapsed for 2010 and is set to jump next year to 55%.

- The tax cut is expected to put more money in the pockets of families most likely to spend it, help businesses to grow and as a result, spark demand, spur job creation, and strengthen the economy in 2011.
- Many economists predict the tax package could increase the economic expansion rate by a substantial one percent next year.

Thanks for reading our Greeley Real Estate Blog!
Posted By: Keller Williams Realty of Northern Colorado – Greeley Real Estate Agents,
specializing in Greeley Real Estate and Northern Colorado Real Estate
View Pictures of Greeley

970.353.6677

April is right around the corner and that means…it’s tax time! Today we are exploring the question “what’s deductible in itemized deductions for homeowners?” Below are six key deductions to keep in mind when preparing your taxes this year.

If you have additional questions about your 2009 tax return, we highly encourage you to consult a professional tax accountant. If you have questions about becoming a homeowner so you too can benefit from these deductions, contact one of our greeley real estate agents today!

1. Mortgage Interest
2. Points - paid at closing if you purchased or possibly if you refinanced this year
3. Mortgage Insurance Premiums
4. Property Tax
5. Energy Efficiency Credits – see IRS Form 5695 for qualifying projects
6. Home Buyer Tax Credit – if you qualify and purchased a home this year, see IRS Form 5405 to claim your credit.

* This is general information and is not intended to be tax or legal advice; see a professional for specifics and advice.

Thanks for reading our Greeley Real Estate Blog!
Posted By: Keller Williams Realty of Northern Colorado – Greeley Real Estate Agents,
specializing in Greeley Real Estate and Northern Colorado Real Estate
View Pictures of Greeley

970.353.6677

Changes are on the way for FHA loan requirements! It is more important than ever for consumers to be on top of the latest information. Below is a summary of some of the key changes rolling out in February and April. We encourage you to contact your mortgage lender if you have any questions about how these changes will affect your ability to obtain financing. Thank you for reading our Greeley Real Estate Blog!

Thanks for reading our Greeley Real Estate Blog!
Posted By: Keller Williams Realty of Northern Colorado – Greeley Real Estate Agents,
specializing in Greeley Real Estate and Northern Colorado Real Estate
View Pictures of Greeley

970.353.6677

We watched an interesting You Tube video yesterday in one of our Keller Williams tech classes – “Advanced Social Networking” taught by Mariana Wagner. The video plots the change in US Home Prices (adjusted for inflation) from 1890 to Present. When you watch the video, keep an eye out for the dates as they change in the lower, right-hand corner of the screen.

Video Link: http://www.youtube.com/watch?v=kUldGc06S3U

Watch the climb that begins as we round into 1997. While the last few years have been difficult, historical data suggests that we were due for an adjustment and that with every decline there is another rise. If you or someone you know is looking to buy or sell in the Greeley area, please do not hesitate to contact us: 970-353-6677. We empower our clients with real-time, local market data so they can make the best, informed decisions. Enjoy the video!

Thanks for reading our Greeley Real Estate Blog!
Posted By: Keller Williams Realty of Northern Colorado – Greeley Real Estate Agents,
specializing in Greeley Real Estate and Northern Colorado Real Estate
View Pictures of Greeley

970.353.6677

There was good news for buyers and sellers this fall! The home buyer tax credit was recently expanded and extended for home sales through April 30, 2010. This means the home buyer must have a signed contract by April 30, 2010 and the home must close by June 30, 2010.

Keller Williams Realty has released a special edition video that details the plan for first-time home buyers as well as existing home owners moving up in the market. You can watch the video at: http://www.youtube.com/watch?v=IMzTpn3FvA8

Here are a few highlights from the video:

• First-time home buyers can still qualify for tax credits of 10% of sales price up to $8,000.
• Existing homeowners can now qualify for up to $6,500 on a new purchase. The existing homeowner must have lived in their prior residence for 5 of the past 8 years.
• The income limits for individuals and couples were raised.
• New homes, resale homes, town homes and condos all qualify for the tax credit as long as they are purchased as a primary residence. Investment properties and homes over $800,000 are excluded.
• Any home purchased must remain the buyers primary residence for at least three years. If the home is sold before then, the buyer must repay the full amount of the credit they received. Members of the military, foreign service and intelligence communities with an extended 90 day service overseas are exempted from this requirement.

Be sure to watch the video for the full scoop! http://www.youtube.com/watch?v=IMzTpn3FvA8