Krista Wilson Real Estate

Tax Credit Extension!

Information provided by the Mortgage Banker's Association: 

We are very pleased to report to you that the House of Representatives passed legislation today to extend and expand the current first-time homebuyer tax credit.  The House action follows the Senate's approval on Wednesday and we anticipate President Obama will sign the bill in very short order.

The bill extends the current $8,000 first time homebuyer tax credit (which was due to expire at the end of November) through April, 2010.  It also includes a tax credit of up to $6,500 for qualified move up buyers and increases the borrower income limits for both credits to $125,000 for individuals and $225,000 for couples.  

Homebuyers will qualify for the full credit as long as they have entered a binding contract by April 30, 2010 and they close the transaction by June 30, 2009.  The tax credit is limited to homes with a purchase price of $800,000 and below.  The bill also includes anti-fraud language that gives the IRS the authority to do greater oversight during the processing of the return.

In addition, the legislation waives the recapture provision for members of the armed forces who are called on extended duty.  These members of our military and uniformed services, who are out of the country for at least 90 days, will also be eligible to use the tax credit upon their return through April 30, 2011.

The extension and expansion of this tax credit is a major legislative victory for MBA and its single family members, and culminates months of MBA advocacy activity (along with some allied trade associations) working to educate policymakers  on the critical role the credit has played in stabilizing the housing and mortgage markets.


Yours Very Truly,

John A. Courson President and Chief Executive Officer Mortgage Bankers Association

Robert E. Story

OPEN HOUSE SUNDAY JUNE 28, 2009

OPEN HOUSE THIS SUNDAY!  Come see us at 4901 Raintree Ct, Lee's Summit, MO.  Beautiful 1.5 Story-4 Bedroom, 3.5 baths, first floor master bedroom, 3 bedrrooms upstairs. Builder's Own! Great decor, neutral colors, open floorplan. Cozy hearthrm w/ see through fireplace to living room. Loads of upgrades include: porcelain tile floors, cabinets, light fixtures, faucets, hardware, and more! Formal dining room also perfect for an office/study!

Directions: 50 highway to 3rd st exit, right to Ward Rd, S on Ward Rd past 150 highway to Raintree Dr, E to Raintree Ct, home is on corner.

Welcome Janice!

Please welcome Janice Jacoby to my team!  She is a great businesswoman and will be a fantastic asset!

Take advantage of the $8000 no-repayment tax credit!!!

Bringing the Dream of Homeownership Within Reach

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.

Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.

Who Qualifies?

First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Will the Credit Be?

The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:

The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.

The buyer's income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.

Information provided by: http://www.realtor.org/home_buyers_and_sellers/2009_First_Time_Home_Buyer_Tax_Credit

Two New Honors!

Thank You! My clients voted again this year and for the 4th year, I was selected again by KC Magazine, a Five Star: Best in Client Satisfaction Real Estate Agent.  Only the top 7% of local real estate agents are chosen. Read a little more below about the selection process they have used for the past 5 years (Excerpt from last year's published KC Magazine) and look for me in the July 2009 issue of KC Magazine! 

Experts say that at least 90 per cent of homebuyers rely on real estate agents
for advice and guidance. But with more than 9,500 Kansas City residents holding real estate licenses, how do you find someone who knows the market, represents your interests and operates with
an emphasis on integrity and service?

The Selection Process
This past December, Crescendo surveyedby mail and phone 19,500 Kansas City area
residents who had recently purchased homes and 2,500 subscribers of KCMagazine. An additional 250 surveys weresent to mortgage and title companies, whoare often best able to judge a real estate agent’s technical skills and knowledge. On the surveys, recipients were asked to nominate only real estate agents whom they knew through personal experience. They were asked to evaluate them based
upon nine criteria: customer service, communication, finding the right home, integrity, negotiation, marketing the home, market knowledge, closing preparation and overall satisfaction.
Only original surveys—no copies—returned in their specially designedenvelopes were accepted as valid. ByJanuary, stacks of surveys had arrived, and Crescendo began carefully scoring and screening each nominee with theKansas and Missouri State Real EstateCommissions’ database to make certain
that licenses were up-to-date and that no disciplinary actions were pending.
Then, before finalizing the list, nominated real estate agents were reviewed by a blue-ribbon panel of local industry experts. The panel consisted of realty company executives, professional and trade
association officers and others directly involved in housing-related businesses.
Although panelists’ comments were incorporated into the final score, safeguards
were built into the review process to reducethe ability of panel members to influence
the composition of the final list on thebasis of company affiliation.Best in Client Satisfaction
The resulting list of FIVE STAR Real Estate Agents is an elite group, representing less than 6 percent of licensed agents in the Kansas City area. Only 483 of the topscoring real estate agents made this year’s list.

Throughout the nomination process, respondents told stories of lasting
friendships that have emerged from what is most often a stressful business transaction.
Several even wrote essays on why their particular agent excelled.

Also, Infinity Realty was ranked again this year in the top 20 or the Top Area Residential Real Estate Companies by Ingram's Magazine!  

Thank you!! 
           

Unbelieveable Bad MLS Photos! This is too funny!

http://www.orlandorealestatephotography.com/bad_mls/bad_mls.html

Top 7 things that you would not expect but should when selling your home.

1. Your Home May Not Be Worth What You Think 
 
The biggest shock most sellers face is the true value of their homes, either determined by one or more agents in comparable market analysis reports or through actual offers from buyers. Sometimes sellers can be pleasantly surprised when houses go up in value. But most sellers find that their homes are not made of gold like they wish. 
 
The reality is that markets change, and home values rise and fall. Many factors affect home values and most of them are subjective and hard to measure. Sometimes you may see no difference between your home and others on the market, and it is hard to understand why your home may appear to be less valuable. It is harder to understand why improvements you may have made do not seem to raise the value of your hom. It is also irrelevant what you paid for the home, and what you need the home's price to yield so you can pay debts or buy another property. 
 
Many people believe their home should pay off like a securities investment. Historically home values have barely kept pace with inflation - that is why they are a place to live, not an investment. But many people believe that when you spend that much money, you ought to be making money on your home. The economic reality says otherwise,  
because homes depreciate even while they gain in value. 
 
Buyers will determine the true worth of your home, in this market, at this time, and what your home is worth right now may be very different than what it was worth three months ago or what it will be worth six months from now. All you can do with your agent is determine an asking price based on comparables, square footage, condition, and  
other factors, and see what the market will bear. 
 
2. People Won't Love Your Home Like You Do 
 
You love your home and fully expect others to appreciate the same qualities in it that you do, but buyers have their own lifestyles, preferences, tastes and attitudes. The chances of finding a buyer who will want your home "as is" are slim to none. 
 
In fact, buyers will look at your home with an eye to how they can make it their own. Then they will love it the way you do. But first, they may knock out that wall where you have your prize fish tank, tear down that designer wallpaper you had imported from England and gut the kitchen where you spent so many Thanksgivings preparing dinner. All those changes cost money, so they will value your home less while they consider remodeling and decorating costs. 
 
It will hurt your feelings that the buyer will find every little flaw possible with the home and use that knowledge to negotiate the home's price downward. Don't let yourself think that what was good enough for you and your family should be good enough for the buyer. But keep in mind that, selling a home can be fiercely competitive. Your home is competing against new homes, homes that have already been updated, and homes that offer unique features that your home doesn't. Your home has to withstand the glare of scrutiny.  So, keep your cool. It's just business, not personal. You weren't going to take that wallpaper with you anyway. 
 
3. Sooner Or Later You Will Lose Your Temper 
 
Your relationship with your buyer will be one of love and hate. The buyer is an adversary because he or she wants to pay the least for your home, while you want to net the most possible. 
 
The buyer, in order to improve bargaining leverage, may pick your home apart. Many of the buyer's complaints and requests for repairs will be legitimate, but some may not. In fact, some requests can be outrageous.  It's your job to stay focused on the ball. If you don't want to comply with the buyer's wishes, you don't have to. You can draw the line, and have your agent tell their agent to tell them to get real. But, the bottom line is that the buyer brings the money to the table. No transaction can take place without one so letting tempers flare only gets you further from your goal. The buyer has pride, too, and doesn't want to lose face any more than you do. But anyone who can't be reasonable because they have let angry feelings get in the way isn't going to be making any deals happen. 
 
You may get angry at your Realtor, too. But if your agent is a pro, she or he will be able to handle your concerns. Just know that some things, like other people's behavior are simply out of your Realtor's control. 
 
4. Unexpected Showings. 
 
Buyers aren't going to operate on your schedule. When your home is put on the market, you won't have just your own Realtor showing your home, you may have dozens of Realtors and their clients wanting to see the home at almost anytime of the day or evening. 
 
You may feel like fair game when buyers show up at your home without an appointment or ahead of their Realtors and ask to see your home. Don't let them in no matter what they say. There is no reason for an unaccompanied buyer to be in your home for any reason. Just say no. 
 
Your Realtor will ask you to keep your home in show condition, which is not easy. People will break appointments, ask to reschedule and there are only so many times a week you can buff those hardwoods. Be flexible, and trust that every buyer who enters your home, regardless of whether they saw your laundry on the floor, is a potential buyer. 
 
5. Buyer rudeness 
 
Everyday, we each experience rudeness in society. People don't RSVP in time for the party, they don't write thank you notes anymore, they get in the express line with at least 40 items, and they are turning road rage into a national pastime. So why be surprised when buyers visit your home and leave their sweaty McDonald's cup on your coffee table? Or leave the cabinets and closet doors open wherever they looked? Or miss their appointment altogether, expecting you to reschedule at a moment's notice? 
 
As tempting as it may be to play Miss Manners, it's not worth passing up a good offer because the buyer left a dirty diaper in your trash bin. 
 
6. Inspections 
 
Inspections kill more deals than any other single factor besides overpricing. All older homes have some minor and some major problems. These can either be addressed in the sales price of the home, or as a negotiation with the buyer under contract. And it is a matter of opinion how seriously the buyer will take some problems over others. 
 
Although the inspection is typically an expense on the buyer's side of the ledger, sellers can avoid a lot of heartache by hiring an inspector themselves before listing their homes. The inspector should reveal what the buyer's inspector will find, giving you the knowledge you need to fix problems that must be fixed, price the home more competitively with your agent and give you maneuverability in negotiations with the buyer. A buyer who sees a favorable inspection report is more likely to make a fair offer, and less likely to bargain hunt or place a lot of contingencies in the contract. 
 
If you don't choose to have your home inspected, be prepared to be surprised with some repair expenses or face a price reduction if you want to keep the deal going. 
 
7. Last Minute Problems That Delay Closing 
 
Service providers, from lenders to inspectors to closing agents, may cause problems, sometimes without meaning to. In some areas, closings are happening at such a rate that all service providers associated with the real estate transaction are on overload. 
 
Lenders may wait until the day before closing to appraise your home. Title insurers, dispatched at the last minute, may find an area of dispute in your survey. The plumber who was going to replace your shower pan in time for final walk-through is called out of town and can't do the job. Any of these scenarios and many others may cause closing to be delayed by days or even weeks. 
 
Expect people to be late, unprepared, or to not show up at all. Try to schedule repair people, appraisers and closing agents any time but peak periods. Your closing will go much more smoothly if you close during the first of the month rather than at the end with everyone else. 
 
A lot of other other things can happen, too. Your sprinkler system could go off and soak the buyer. You dog may get loose and bite your buyer's agent on the ankle. A storm could take your roof off an hour before closing. Whatever happens, you can prevent a lot of problems in advance, and handle the unexpected ones with a good sense of humor. 
 
Be prepared for anything and everything.

Listen to your Realtor.

You're paying for good advice.

Take it. 
 

Check out this video of one of my beautiful listings!

http://www.youtube.com/watch?v=jGuPw4HRF3s

The Time is Now for Real Estate!

The Time is Now for Real Estate
By: Rich Levin

 “This is the type of Real Estate market that two years from now everybody is going to say, “I wish I had bought then.”  All the factors are lining up for the next six to twelve months to be that year.  Let’s look at those factors. 

Financing

Interest rates are dropping below 6% on residential mortgage loans.  Rates are seldom that low and when they have reached that level, mortgage loan rates do not stay there for long.  According to HSH Associates, the nation’s largest publisher of consumer loan rates (HSH.com) from mid 2003 through mid 2005 rates hovered just above and below the 6% threshold, never below for more than a few months.  Before that they had not been below 6% for forty years.  The most likely conclusion is that mortgage loan rates will not stay below six for long.  So, Buyers would be wise to be actively looking to buy and take advantage very soon. 

Mortgage money is available.  Real Estate Agents and mortgage brokers from coast to coast are all telling me that there is money available with five percent down or less.  The Buyers do need to have steady employment, and a reasonable credit rating.  The days of Buyers needing to prove employment, have some cash on hand and credit worthiness have returned for good, hopefully.  Violating those obvious principles contributed enormously to our current global financial crisis.

Requiring stability of employment, credit and some cash is not the banks being cautious.  It is the way lenders have made decisions since paper money was invented.  The last ten years when those fundamentals were ignored have been the exception.  Bottom line, solid Buyers can get the best rates and buy at what I believe is at or near the bottom of the market.   

Inventory, Foreclosures and Pricing

New home inventories are being absorbed.  According to HWMarketIntelligence.com “the number of new homes for sale continues to steadily decline and have not recorded a monthly increase since May 2007.”  According to the Mortgage Bankers Association the number and rate of properties entering foreclosure is slowing. 

My anecdotal research from my Real Estate Agent Clients around the country is that the foreclosure properties are being purchased at a much higher rate as first time home Buyers and investors in market after market are deciding that we are near enough to bottom.

This Buyer and investor activity will create its own momentum.  As more Buyers and investors choose to buy now the demand they create will stabilize and lead to market appreciation.  Did people who bought at the height of the boom in late 2005 and 2006 lose equity?  In most markets yes, in some markets they lost a lot.  Are the Buyers who buy over the next year likely to be buying at the bottom of the market and benefit from excellent appreciation?  Every indication that I see says yes. 

As Real Estate Agents you need to decide if you are comfortable recommending that this is the time for Buyers to buy, that prices may be at or near the bottom.  I suggest that we are at or near the bottom and the Buyers you encourage to buy over the next twelve months will be forever grateful for your advice.

Some Considerations

The Real Estate market, specifically for residential homes is typically not a speculative market.  The vast majority of people buy a house to live in it as their home, not to resell it for a profit.  Over the last forty years Buyers have come to expect that their home will build equity and appreciate in value.  But, the decision to buy is usually based on factors other than anticipated appreciation.  The Buyers you encourage to buy want to own the space in which they live.  The fact that this is a fabulous time to make that decision just makes your job easier. 

Second, there is a continuous demand in most markets.  People graduate from school, get better jobs, get married and divorced, have children, upgrade and downsize, among dozens of other reasons that new Buyers come on the market.  These life events keep occurring.  However over the past two years these Buyers have paused.  They still want to buy but they are waiting.  Historically when there is a time that Buyers are reluctant to buy for any reason this creates a pent up demand. 

As Buyers realize that it is a good time to buy but not necessarily for Sellers to sell; demand will begin to absorb and exceed supply.  Over the next year or two the additional demand is likely to lead to a Seller’s market.  Because of the severity and magnitude of the current housing supply this turn to a Seller’s market will likely be gradual. 

The signs of this shift are occurring now, that is, the supply of new construction and foreclosure homes are being absorbed by first time Buyers, investors, and secure homeowners taking advantage of their financial strength.  This spring may be the tipping point when market activity flourishes.  I believe it will.  

Inflation: The X Factor

I remember a rapidly inflationary period.  I remember it for a funny reason.  I used to drink a lot of Coca Cola.  One day when I put a quarter into the machine to vend my Coke I realized that it was going to cost me forty cents.  Soon after that it was fifty cents and within five years it was seventy five cents.  Now it is at least a dollar.  This is inflation.  Your money buys less and the cost of what you buy increases.

If you owned Real Estate during this same period you were very happy because the property you owned in 1981 also doubled in price or more by 1986.  That is true even if you didn’t live in a highly populated area.  This inflationary period did not discriminate by locale. 

Are we on the verge of another inflationary surge?  I don’t know.  I have been reading what I can find on this and it seems to be a largely ignored topic.  I notice that gas prices are declining but not much else.  I think about the trillions of dollars worldwide being spent on the bailout.  The definition of inflation is when the amount of money in circulation increases and the available goods decreases.  It seems to me that is what is happening. 

If inflation does devalue our money then house prices, along with the price of almost all other hard goods will increase and this year’s Buyers are going to get benefit tremendously.  Whether this happens or not it is time for buyers to get in the market. 

First Time Buyers and Investors

For certain Buyers it is time to get active.  I am saying to anyone and everyone that will listen.  FIRST TIME BUYERS THIS IS YOUR TIME!  The federal government is still offering a $7,500 tax credit that is scheduled to conclude in the summer of 2009.  Prices and interest rates are down.  If you are employed and credit worthy you can buy with a small amount of cash out of pocket.  FIRST TIME BUYERS THIS IS YOUR TIME!

Another group that I am encouraging to buy now is investors of residential rental property.  Investors still have to do their investment analysis.  They still have to carefully look at occupancy and vacancy rates.  In other words, investors have to make smart, calculated buying decisions.  This is always the case.

The reason it is a good time for these investors is because the market is soft.  As long as there has not been a population exodus in your community, that is, as long as people are choosing to live in your community and employment is stable, the rental property is going to sustain value.  At the same time market conditions right now, with more challenging underwriting standards and only those who really need to sell putting their property on the market creates the opportunity all investors are looking for, buy low, particularly those with some cash. 

Get in the Game

So, I have been telling my Agent Clients and my audiences to shout from the rooftops that first time Buyers and investors should get in the game.  Call the people in your spheres of influence and your past Clients and be honest with them about whether it is a good time to sell. 

At the same time encourage them to tell their relatives, friends and any one that they care about that if they are first time Buyers to call you and start looking.  If they are investors with some cash suggest that they start looking for golden opportunities with you.

Look for articles from legitimate sources about what is going on with the global financial crisis.  But then look at your local market and discover the opportunities for first time Buyers, investors or any other group or type of property that may be a shining beacon through the fog.

Be the optimistic and intelligent voice of opportunity and you will both survive this market you will become a roaring success as the market improves; which it will.  When?  For most markets, the prediction is late 2009.  For some it will be spring of 2009 and for others it will be longer. 

I have led Agents to success in four of these major shifts since 1979.  Every one of these soft markets creates strength in those that survive it.  And those who survive it by discovering the opportunities for their Clients become the highest producers and the leaders of the healthy market that is likely to be just around the corner.

Lee's Summit is great! Look at this...

This is cool. According to CNNMoney.com, in Money Magazine's August 2008 issue, Lee's Summit, Mo is ranked 79th in Money's list of America's Best Cities. 

Go to http://money.cnn.com/magazines/moneymag/bplive/2008/snapshots/PL2941348.html  to view the details!