Conway Real Estate Guy

BEWARE - Mortgage Pitfall!

2010-05-14T11:21:00.007-05:00

My mortgage company lets me have until the 15th of the month before they assess a late payment penalty and give me a frowny face on my credit report. That's pretty nice of them, isn't it? It's like getting to keep your money another two weeks for free! Except, it's not free.

This is a quote from LendingTree.com:

Finally, keep in mind that closed-end loans (e.g., a 30-year mortgage) differ in some respects from open-ended loans (e.g., a home equity line). If you make a payment later on an open-ended loan, you could owe more interest and a smaller amount of your payment might be applied to interest expense because the interest is calculated on the number of days between your payments

What does this mean? It means that when you get the money to them on the fifteenth you are paying fifteen days late. There is no "late payment fee" thrown at you, but the interest for those additional days is tacked on to what you already owe! This usually doesn't rear its ugly head until you reach your last payment on the loan or you sell your property and settle up with your lender at closing. You may actually have to bring money to the table to sell your house because of this additional interest.

The bottom line is this: pay your mortgage on time. If the 1st of the month falls on the weekend or a holiday, have your payment to the lender on the 30th or 31st of the preceding month. Avoid this mortgage pitfall. It could save you thousands.

Water, water everywhere...

2010-04-05T13:15:00.000-05:00

When is that last time you replaced your washing machine hoses? Let me guess, you have no idea. Well, me neither. That makes it time to replace them.

According to one source (the packaging my new hoses came in), broken hoses are the number one cause for homeowner's insurance claims. Even if it isn't true, it's believable.

I recommend you just go right ahead and get new ones. A $15 investment now could save you a $1000 deductible later on. Put them on the grocery list or whatever you have to do to remember.

Here's a tip: take some masking tape, write today's date on it, and wrap it around one of the hoses. Reading that date in a few years sure beats trying to remember when you last changed the little buggers.

2010-02-28T17:58:00.000-06:00

I just found a great website from HGTV: FrontDoor.com.

This website is one of the best I have seen for home buyers, sellers, owners, and even renters. It is well organized and very easy to navigate, too.

For buyers, it has a listings search function for homes for sale. All it needs is the ZIP code, and it will show you what is listed in Conway (or anywhere else). There are links for first-time buyers and experienced buyers. For sellers (including FSBO's), there are links giving you information on how to think like a salesman, market your home, and close the deal. The site also has videos for everything from moving tips to staging your property.

How's the market?

2010-02-10T16:07:00.002-06:00

Real estate agents (like me!) get asked one particular question on a semi-daily basis, "How's the real estate market?" Most of us will give you a pat answer: Great! or Fantastic! or Couldn't be better! Other agents will say that it is just horrible. Still others say that it is just ok. I personally try to back up my answer with some actual data.

In January 2008, single-family, residential house sales were a little over $330,000,000. In January of this year, the figure jumped to almost $370,000,000. That's $40,000,000 in additional sales. An increase of over 9% since a year ago! Conway real estate is (compared to the rest of the nation) simply booming.

When people ask me about the market, I'm ready with a response...."The market is going great!"

A lockbox holds the key!

2010-02-05T21:53:00.024-06:00

When you list your property for sale, an agent will usually put a lockbox on your door that holds the one thing keeping criminals out: the key to the locks. Now, I ask you, which of the following lockboxes would you choose to have on your front door?

The combination lockbox (left) has three major drawbacks. First, it can be left unlocked. Yeah! If the last agent doesn't spin those little wheels, the key is available to anyone who walks up! Second, the box doesn't care who knows the code. When the correct four-digit code is used, anyone can access the house key. Third, the plastic door holding the key inside is about 1/6 of an inch thick. How secure do you feel now?

The lockbox on the right is the GE Supra Lockbox. It requires an infrared 'key' that resembles a cell phone to open. These electronic keys are issued only to individuals who should have access to listed houses and require the user to enter a PIN code to work. The lockbox records the showing agent and the time it was accessed and transmits that information to the listing agent. The house key, which is stored in a metal container encased by the box, is then released to the agent.

The one I'd choose? The one that can't be opened without another key. My suggestion to anyone listing their property with an agent is to ask what type of lockbox will be used for key storage. If it's not the Supra lockbox, talk to another agent.

Easy, peasy email notification

2010-01-25T13:56:00.000-06:00

Did you know that you can receive automatic email notification of new and recently updated MLS listings?

It takes me about 10 minutes to set it up. You can get updates when houses come on the market in your price range, with the amenities you seek, and all without having to waste time checking Realtor.com every day. You will receive a notice when prices change for properties matching your search criteria, too.

To get started, you can give me a call (501.514.2319) or send me an email with your parameters, and the emails will start to trickle in. There is also a link on each email that will allow you to stop them from coming. Easy, convenient, and you are in control!

Homestead Tax Credit...don't miss it!

2010-01-17T10:17:00.000-06:00

I recently had the unpleasant experience of telling a client that they had unnecessarily paid a few thousand dollars in extra taxes over the past few years. To their credit and my surprise, they took it well. They also vowed to never again pay the superfluous tax. What they now know (and you need to know) is referred to as the Homestead Tax Credit.

Taken from Arkansas.gov:

Homeowners in Arkansas may receive up to a $350 property tax credit on their homesteads. Eligibility for the credit is confined to a homeowner's principle place of residence. A homeowner is defined as someone who the owner of record, by deed or by recorded sales contract, or the beneficiary of a revocable trust owning the homestead. Nursing home or retirement center residents who own a home are also eligible for the credit; as are people who have deeded theirs homes to others while retaining a right to live in it until they die (A Life Estate).

Only one homestead per property owner is eligible to receive the tax credit.

Every home owner in Arkansas needs to be aware of this tax credit. To get it, there is one thing you do have to do: contact your county assessor and tell them you want the credit applied to your taxes. It's just that simple.

If you are not sure you have taken advantage of this "gift" from the government, email me your address, and I will let you know what the tax records say about your property. You can also contact your county assessor for this information.

Insulation recommendation

2010-01-11T16:12:00.001-06:00

When my wife and I bought our house, we knew next to nothing about home ownership. We knew the obvious stuff (change your AC air filters, watch for leaks around the water heater, drip the faucets in really cold weather, etc), but we didn't know about the nuances of having to care for the entire structure and everything around it.

Once, when I was crawling around our not-too-spacious attic, I spotted a hole in the house. Not a hole in the roof, mind you...a hole in the house. Right next to the master bedroom, a "void," about three feet by three feet, was present that went all the way down to the foundation. It was an area where the designer/builder couldn't make proper use of the space, so they just drywalled it off. There is one huge problem with this: there was nothing to insulate those interior walls against the hot/cold air in the attic.

I always noticed an extreme temperature change around this part of the house, but it never occured to me that there was a nine square foot hole in the attic insulation causing it. To fix the problem, I took a large piece of styrofoam and blocked off the hole. That did it. The temperature in the house is much more even now.

I know that your house may not have that specific problem, but I wrote this post to encourage you to take a fresh look at your property (read: investment) and see what you can do to increase the quality of life in your home. Look for areas where extra insulation can benefit your utility bills. Inspect your doors and windows for ways they can be sealed better. Every little bit helps when it comes to keeping the cold and heat outside, and the comfortable temps inside.

Prepayment chicanery

2010-01-10T22:02:00.001-06:00

Ready to save potentially thousands of dollars when you buy your next house? Just say this to your lender: "I don't want a prepayment penalty." That's it.

A prepayment penalty is simply a fine for paying your loan off early. If you want to sell your home or even refinance it, and you have a prepayment penalty clause in your agreement, you will pay a 'premium' to do it. Lenders who include these clauses like them because they discourage the borrower from breaking the relationship with the lender, thereby keeping their customer.

Sometimes, a lender will offer a lower interest rate to entice the borrower to include the penalty. As a borrower, you should ask yourself if saving an extra $35 per month is worth possibly thousands in fees down the road. Personally, I have never signed a loan agreement that included a prepayment penalty. I recommend you think twice before you sign one.

Interest rates expected to increase in 2010

2010-01-05T12:58:00.000-06:00

What is the worst thing that you can do to hurt yourself in real estate dealings? The answer is procrastinate. I have heard the story over and over again. People find a property that is what they want, they research it, compare it to other properties, call an agent, view it, and then....wait. Wait for what? The seller to get desperate, everything to feel right, the moon to shift phases, whatever.

It happens to sellers, too. They are ready to sell. They have done their due diligence, and even contacted an agent. Then....they stop. They wait.

The result? Many times buyers lose the property. It sells or goes off the market. For sellers, their neighbors sell and move away while our potential sellers stay behind wringing their hands on what they should do. Something else that can put on some pressure for both? Interest rates increase.

That is a really likely scenario to become reality in 2010. Don't take my word for it. How about a quote from one of Freddie Mac's economists:

"The Federal Reserve's scheduled phase-down of it's multi-billion dollar purchases of mortgage backed securities, plus expected moderate growth in the economy, will force rates at least a percentage point higher."
-Amy Crews Cutts, Deputy Chief Economist with Freddie Mac

We have become accustomed to four percent interest rates: 4.5%, 4.75%, 4.875%. This will not last forever, folks. The interest rate is tied to the economy. The economy is improving (no matter what your friends tell you). This is a good thing. We want a strong economy. However, the incentive to hold interest rates down is slipping away. They are beginning to edge up right now.

If you are ready to buy, do it. If you are ready to sell, do it. If you aren't ready for either, then don't do either. But, please don't allow procrastination and worry to stop you from making a good decision.

Happy New Year

2010-01-01T22:27:00.000-06:00

Happy New Year to all my readers!

I've been taking some time during Christmas for family and reflection. I'm now rejuvinated and chomping at the bit to immerse myself in Conway real estate.

I'm looking forward to 2010 like no other year before. I hope your year is everything I'm hoping for mine to be.

HAVEN House needs Help!

2009-12-22T14:26:00.000-06:00

HAVEN, Help for Abuse Victims in Emergency Need, is in need itself. The house, used to shelter girls in foster care from 6 to 18 years of age, is requiring significant repairs.

According to an article in the Log Cabin Democrat, the HAVEN house, 1701 Donaghey Ave., was built in the 1930's and began its service to Conway's young girls in 1986. They are in need of materials and manpower to bring the quality of living up for their residents. If you have skills of any kind that can be used to repair an old house, they can use your help.

If you would like to offer assistance, please send email to Jenny Morse at jmorse@caiinc.org.

Real Estate myth #2: The loan officer is your agent.

2009-12-18T11:25:00.000-06:00

Here's a real estate 101 question for you: Who does the loan officer work for?

Here's a hint: it's not you.

Loan officers work for the bank. Now I know that is kind of obvious, but the real point here is how that fact affects you. Loan officers have a fiduciary responsiblity to the bank. Their goal is to maximize the profits of the bank to the best of their ability. The basic law of supply and demand kicks in here. They try to borrow money at the lowest rates and lend money at the highest rates possible. They negotiate their rates of interest on what they borrow. You should do the same.

When it comes to obtaining a loan, shop around. You can use the bank that you have always used, the one that mom and dad use, the one that has the prettiest building or advertising....but how do you know that their rates and terms are the best you can get? The answer is by taking your potential business to at least three of them. Compare apples to apples and see who gets you the best deal. The really cool thing? That comparison shopping is about to get even easier.

Beginning in 2010, all lenders will be required by federal law to use a standardized Good Faith Estimate form. This form will outline the estimates for interest rates, origination charges, escrow information, settlement charges, and more. The new GFE will tell you what charges can not change and what charges can change and by how much. Some lenders are already using this form.

Most of the loan officers I know are upstanding, honest, and friendly. You could trust them with your children, your house keys, and your money. This is not a slam on any of them. You just need to know that the loan officer is not there to represent you or to be your agent. Only you can shop loans to find the best deal for you. Don't rely on regulation to guard against ignorance. Educate yourself and be prepared.

Holiday Festival of Light and other illuminated joy

2009-12-13T11:43:00.002-06:00

I don't know about you, but I seem to be finding fewer Christmas lights glowing from rooftops this year. Folks might be trying to save some money by not plugging in the electronic cheer. That makes driving the neighborhoods less rewarding for those of us who like to load up in the front-wheel-drive sleigh, listen to Christmas music, and enjoy the wonderment that comes from exterior illumination.
**Special thanks to National Lampoon's Christmas Vacation for the allusions.

What we need is a strategy for finding the best Christmas light displays in and around Conway. I have a suggestion for your first stop. The "Holiday Festival of Light" that is in its fourth year at the Centennial Bank Soccer Park located about a mile west of Walmart on Dave Ward Dr. From six until nine nightly, you will find a mile of Christmas lights, music, and food. Santa is available for pictures with the kiddos, and there is a huge model train display sponsored by the Conway Model Railroad Club. The cost is $5 per carload, but you can get a season pass for $25 and $60 makes you a member and gets you all kinds of extra goodies.

I invite you to comment below with recommendations of neighborhoods, streets, or individual houses that have decorated themselves up right for the season. Please give a description of what we will find and directions on how to get there.

Rural Development to the rescue!

2009-12-02T15:28:00.003-06:00

Been trying to figure out how to take advantage of the tax credit for new home buyers but having trouble coming up with the down payment? A Rural Development loan may be your answer. The USDA/RD describes RD loans this way,

"Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities."

Here are some of the details that you will need to know about RD loans (also known as Section 502 loans). First, there is no down payment required with an RD loan. However, there are income restrictions based upon the area where you wish to live. You can see those income limits for Arkansas here. You must also have a "reasonable" credit history.

Second, your lender must be approved by the USDA to process RD loans.

The following is taken from the USDA website:
Approved lenders under the Single Family Housing Guaranteed Loan program include:

Any State housing agency
Lenders approved by:

HUD for submission of applications for Federal Housing Mortgage Insurance or as an issuer of Ginnie Mae mortgage backed securities
the U.S. Veterans Administration as a qualified mortgagee
Fannie Mae for participation in family mortgage loans
Freddie Mac for participation in family mortgage loans

Any FCS (Farm Credit System) institution with direct lending authority
Any lender participating in other USDA Rural Development and/or Farm Service Agency guaranteed loan programs.

In addition, there are restrictions on the property you buy. Here is a quote from the USDA website regarding approved properties:

"Under the Section 502 program, housing must be modest in size, design, and cost. Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. New Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards. Existing manufactured housing will not be guaranteed unless it is already financed with an HCFP direct or guaranteed loan or it is Real Estate Owned (REO) formerly secured by an HCFP direct or guaranteed loan."

For more information on RD loans or to view properties that may qualify for this type of loan, give me a call at 501.514.2319 or send email to Rodney@RodneyGetsResults.com

He giveth and taketh away

2009-11-30T14:37:00.004-06:00

By now you probably know that the economy is not in the greatest shape. Some places in the country are completely upended while others are doing quite well. Here in Conway, we seem to have a mixed bag.

There are quite a few businesses that have shut their doors here, but, on the bright side, there are a few that have decided to hang their shingles in Conway. Of the ones that have recently closed, there are:

Mickie's Bluefish Grill
IC Corp
San Francisco Bread Co

I'm sure the employees and patrons of these businesses will sorely miss them.

On the flip side, though, we have some big names moving in and to Conway. The most famous, of course, is HP (set to bring about 1,200 jobs). There are some other developments in the works, too. Here are some high points of economic development in the City of Colleges:

Arkansas Blue Cross and Blue Shield data center
The Village at Hendrix
Continued growth and development of retail space
New restaurants like Logan's Steakhouse, Big John's Subs (located on Meadowlake and Donaghey), TGI Fridays, etc.
Downtown Conway's continued success
501 Life magazine

"Take away my people, but leave my factories, and soon grass will grow on the factory floors. Take away my factories, but leave my people, and soon we will have a new and better factory.” - Andrew Carnegie

Little Rock Zoo info and Happy Thanksgiving!

2009-11-25T16:50:00.002-06:00

This will be a short post...got to get ready for the Big Day tomorrow.

Here is some really good news. The Little Rock Zoo is giving a great deal on their membership rates. They will be selling their year-long passes at HALF-PRICE from November 27 through the end of the year!

The most expensive (and biggest) membership package is usually $95. In a couple of days, that rate will be $47.50. I have my Christmas shopping done!

Here is a link to their website: littlerockzoo.com/ratesbenefits

Happy Thanksgiving to everybody!

Thanks, Rotarians!

2009-11-19T14:21:00.001-06:00

I was blessed to be invited to the Conway Rotary Club for their weekly meeting today. Being that I am a full-fledged Kiwanian, I thought it would be fun to see how the other civic clubs handle themselves. I was very impressed by the people I met and how kind and friendly they all are.

Like most civic clubs, they have speakers from the community (who may not have anything to do with the Rotarians normally) come to speak about their fields of expertise. Today, the presentation was a bit different. Twenty years ago this month, women were first allowed to join the Rotarians. The speakers were three former female members who had key roles in the early days of Rotary welcoming women. It was enlightening to hear about the struggles and obstacles they overcame.

Thanks to the Rotarians for welcoming me into their meeting!

Conway 2025 (Conway2025.com)

2009-11-18T14:56:00.007-06:00

One of the reasons I became a real estate agent is because I wanted to be a part of taking Conway into the future. I have lived in this city since 1992 (with a couple of summer breaks during college notwithstanding), and I have never since wanted to live anywhere else.

All of us who call Conway home have been given a chance to voice our opinions about its future. The Conway Chamber of Commerce has created a project called "Conway 2025" (the web address is Conway2025.com). The purpose of this site is to bring attention to a survey in which all voting-age adults are invited to participate. You will be asked your preferences on what the city leaders should focused on during the next 15 years.

This is an opportunity that you should not pass up. It literally takes less than three minutes and can provide valuable insight to folks who make the "high-level" decisions.

Conway2025.com

Watch how Channel 7 News covered the endeavor:

11 Tiger Trail - NEW LISTING!

2009-11-14T17:20:00.004-06:00

Beautiful home built in 2000 and in great condition! This home will not be on the market long. Three bed rooms, two full baths, a generously proportioned family room, and large eat-in kitchen. Enjoy watching the wildlife from the elevated deck in the wooded backyard.

See pictures and all the details at 11tigertrail.rodneygetsresults.com

OK, yes, now....

2009-11-12T16:34:00.002-06:00

NOW, the Home Buyers Tax Credit has been extended. And there is some cool stuff in it.

Not only can new home buyers still get $8000 from Uncle Sam just for buying a house, but those folks who have owned a house in the past should sit up and pay attention, too. You may be able to join the party.

Here's the skinny: Everything remains the same for you if you have never owned a primary residence (or haven't in three years). Just keep on procrastinating like you have been; you have more time. I recommend you get moving before the end of April, though. You must now be UNDER CONTRACT by April 30, 2010. You must also close your sale by June 30, 2010. That gives you 60 days to close which is double what you had the first go 'round.

OK, here comes the cool part. People who HAVE owned a primary residence in recent years can get a tax credit of up to $6500 if you meet certain requirements. The biggie is that you have to have lived in your house for a consecutive five of the last eight years. Note that this tax break doesn't apply to home sales. But, what you may consider is that you have closing costs when you sell your home, buyers of your current domicile might ask you to pay their closing costs, and, if you hire a REALTOR, you will have commissions to pay. $6500 might go a long way to covering those costs.

I really doubt that we will get another hand-up from Congress in 2010. If you are thinking of buying a house or selling your current residence, now might just be the time. While I will not suggest that you make such large changes in your life for a simple tax benefit, I will say that you should consider it when thinking about your options.

There are some income limitations, time requirements, and what-not, so read the IRS's take on the whole thing here:
The Worker, Homeownership and Business Assistance Act of 2009

NO NO NO!! Not yet anyway.

2009-11-02T22:09:00.002-06:00

The New Homebuyer Tax Credit HAS NOT BEEN EXTENDED!! yet.

(sorry for shouting)

There was a huge amount of DISinformation disseminated over the weekend about the tax credit being extended. There are so many people desiring that this happen that many of those people bought into the rumor without any verification at all. They just believed the hype.

I think the tax incentive will be extended (possibly improved). There are a few things that kind of need to happen first, though. A bill needs to be written, get out of committee, voted on, passed and then 'passed' to the other side of Congress, voted on again, passed again, and signed by the President. Just formalities, right?

Congress is what it is. Sometimes they get it right and other times, not so much. I will be sure to post here when the tax credit does incur some changes. Stay tuned!

In a Roundabout Way

2009-10-19T09:30:00.008-05:00

Anybody who drives in Conway knows about the trials and tribulations of taking our lives in our hands on our public road system. We don't have the luxury of leisurely driving to our destination without a care in the world. Due diligence is mandatory at all times while traversing the curiously designed city streets. Don't get me wrong, I love this city...wouldn't trade it for any other. It's just that our avenues can be challenging. Try driving a 37 foot RV down Harkrider around 5pm on Friday (as I have done) and you will be a believer.

I'm sure most people in town have seen the road construction in front of Hendrix College and have wondered what the plan was for that area. Well, it is NOT going to be another Roundabout. It will be two.

Love 'em or hate 'em, roundabouts are here to stay. Personally, I love them. I think they make the traffic much smoother and more intuitive for the driver. They are simple in design and function. There is next to zero cost of maintenance (no traffic lights to burn out). And, with the exception of the minimum 87 yield signs per intersection, they are even attractive.

Real Estate myth busting #1

2009-09-12T20:57:00.003-05:00

From time to time, I will address certain Real Estate myths that I uncover, and I will expose them here in the blog. As I discover new ones (and people are always creating new ones...these things are like computer viruses, folks), I'll be sure they are brought to light here.

Here's one that I am going to debunk right now. I was speaking with a prospective client a few days ago. This person was very savvy and knew quite a lot about Real Estate and what is involved in selling one's property. Towards the end of our conversation, she asked me, "Why does it take so much longer to close when REALTORS are involved?"

The short answer is, "It doesn't."

Working with a REALTOR will not, by itself, increase or decrease the time between getting "under contract" and closing. Now, a REALTOR might suggest that a client increase this duration due to contingencies on obtaining financing, selling one's current property, waiting for a lease to expire, or about a thousand other possibilities.

All of these things can and do happen with "For Sale by Owner" situations. The real difference is that, without a REALTOR, you may not know to ask for a longer time before closing. A REALTOR is trained to ask the questions that the client may not think to ask. Be sure to tell your REALTOR about your situation. Treat him or her like your closest friend. We have a fiduciary responsibility to our clients. If you don't think you can trust your REALTOR, dump them and get a new one.

The Market is great!

2009-09-05T10:35:00.005-05:00

I've said it over and over lately. It is a great market!

Technically speaking, the market is always great. The only thing that changes is for whom the market is great. (Too many uses of 'great?'....sorry)

It all has to do with supply, demand, and months supply. Supply and demand are easy enough. Supply is what we have, and demand is what we want. When we have more than we want, prices go down. When we want more than we have, prices go up. Got it? OK. Months supply is a number that helps us understand whose market it is: buyers or sellers?

The following is a quote from the National Association of REALTORS:

Assessing months supply is an

important consideration when

describing market conditions. It

succinctly measures activity in the

housing market at a given point in

time.

Months supply is determined by

calculating the ratio of inventory

available for sale at the seasonal

sales pace in a given month. If

months supply increases, the

implication is housing demand

favors buyers; if it decreases it

suggests better opportunities for

sellers.

The current national months

supply of housing inventory is 9.4

months, down from 11 months

one year ago. This means that, at

the current rate of sales and

available inventory, it would take

about nine months to sell all the

homes currently available for sale.

However, for homes under

$250,000, months supply is six

months, which indicates greater

demand. In contrast, the market

for $1 million+ homes is virtually

frozen at 21 months.

So what does it all mean? The bottom line is that we have had a buyer's market for quite a while now. If you wanted to buy a house, you had plenty of inventory from which to choose and prices looked pretty good. The trend appears to be shifting now. With the exception of mega-homes, sellers are getting stronger. We can attribute this shift to things like the implementation of tax credits ($8000 for new home buyers) and the reduction in new construction.

Over 65? There's a property tax advantage to it.

2009-09-02T15:26:00.004-05:00

If you have reached the magical age of 65 and you own your own home in Arkansas, you have an advantage over the rest of us: you can have the assessed value of your principal residence frozen. Amendment 79 caps the assessment of your principal residence if you were 65 or older on January 1 of the current year.

There are two things to note, the first being that you must be 65 on January 1. If you turn 65 during the year, you get the tax benefit in the following year. The second thing is that this does not have anything to do with your area's millage rate. Here in Conway, the millage rate is 47.60. If the people of this great city vote a millage increase, you get to participate in that higher rate, too.

There is one more thing that affects this advantage: additions. If you improve your property, that opens it up for a re-assessment. Check with the County Assessor with any questions you have (and don't forget to ask about the $350 Homestead credit while you're at it). Our Assessor is Jeff Stephens and his number is 450-4905.

Only 45 shopping days left....

2009-09-01T11:14:00.005-05:00

Yep, only 45 shopping days left. At least, that's what I recommend. Let's not wait until the last minute.

Come November 30, the $8000 first-time home buyers tax credit goes bye-bye. "But, wait!" you say. "That's 91 days from today. Where did you learn to count?"

Ah, but you have to CLOSE by November 30. If you are a true first-time buyer (and most who qualify for this credit are), you may not know that it can take weeks to close on a house. To have a reasonable reliance upon getting your tax credit, you ought to be under contract by October 15. That gives you 45 days from today to shop for that home of your dreams.

If you are holding out for a better deal, keep in mind that it will literally take an act of Congress to make it happen. There are extensions and expansions in the pipeline right now. These bills are stuck in committees and haven't passed over all the hurdles to become law. Roll the dice and hope for the best? That is a question you will have to answer for yourself.

That does lead me to one point, though. Please don't rush out and buy a house just for the tax benefit. Purchasing a home is a big decision and one you shouldn't take lightly. A REALTOR can help you navigate the challenging process of searching, negotiation, and purchasing your home. We are trained to help you find houses in your price range and possibly spot potential pitfalls that may not be obvious.