Tips for First Time Home Buyers

Owning a home can bring comfort and stability, however the process to get there can seem daunting. While there comes a point in life when a person should own a home in the interest of their future, many do not quite know how to handle this task in a way to decrease stress. Here are some tips for first time home buyers:
1) Make a list of what you’re looking for and the price.

-Sure, we all want the mansion with seven bedrooms and a swimming pool, but it probably will not fall into your price range. It is important to set a price range, and then think about areas you want to live in, number of bedrooms, amenities such as washer and dryer and central air and heating. What are the things you cannot live without? What are the things you would like, but don’t necessarily need? Setting up a list will allow you to narrow down the number of options and will ensure you aren’t make compromises when you don’t have to. When visiting the houses, it is encouraged to bring the checklist and a digital camera. This helps keep track of the homes, while also organizing your thoughts and feelings on each home and the amenities it has to offer.

2) Give yourself adequate time to process.

-How motivated are you at this point? Sometimes people will look for years for a home, but those are people who are looking for fun, not out of necessity or a drive to own a home. Motivated buyers will probably find their home in two weeks, depending on scheduling. If you want to see many, many homes, it will take you longer. Remember, you do not want to overload your brain. While a highly motivated buyer could ask to see 20 or 30 homes in a day, details will be lost and that buyer may be mistaken about which home is right. Instead, set the cap on seven home tours a day. This may take you longer to find the perfect house, but this way you are sure to remember the important details.

3) Go with instinct but don’t jump before you leap

- Remember to ignore your instinct to shop around. Sometimes we find something we want at a store and we feel the desire to visit other stores to ensure we are getting the best deal. You must suppress this urge when buying a home. Once you find the perfect house, it is important to make an offer quickly before another person takes it from underneath you. However, this does not mean you should be hasty! Going to see the home a second time is recommended. Going to see the home at different times of the day and week is also recommended. Listen to your real estate agent; they are required to point out what may need to be fixed. Don’t allow the initial excitement of finding the home that looks perfect on paper cloud your judgment. It may be in a great neighborhood and have the exact number of bedrooms you want, but what if all the pipes need to be replaced? Pay attention to detail, be aware of what repairs and changes you’re willing to do, and once you find the home you love, visit often and make an offer.

Are you interested in more information about the Mint Hill, Matthews and Charlotte area real estate market? Check out http://www.minthillrealty.com/

Home Repairs

Owning a home for the first time brings about a whole new slew of responsibilities, including home repairs. No longer will the friendly landlord provide basic home improvements, this time it is up to you. When looking for a new home to buy, it is a common to excuse certain aspects by thinking repair and remodeling is always a possibility. Before you start redesigning and gutting your home, here is a guide of common home improvement projects and the average cost.

Depending on what climate you are living in, roof repairs may be fairly infrequent. However, whether it's every five years or every twenty years, roof replacement is probably in your future. Roofs are extremely important for energy conservation and the main protection against the elements, but that doesn't mean they have to be without personality. Asphalt shingles are the least expensive, therefore are the most common. Removing old shingles can be $30-$60 per square (roofing is figured in "squares", which is 100 sq. ft.) and new asphalt shingles are $50-$150 per square. They may be cheaper, but they can come in fun colors and they are functional and durable. Next in price are metal and concrete tiles, which can range from $115 to $650, however these roofing materials can add a lot to the curb appeal of your home. Ceramic tiles are very modern, chic, and stylish and can cost $275-$500 per square and finally slate tiles are the most expensive because it takes great skill to install them. Slate tiles will cost $1000 per square, however they can also last up to fifty years.
Sooner or later, there will be a plumbing issue and unless you are or are friends are blessed as a very handy person, you will have to call a plumber. Plumbing issues are more common in older homes, but every home will eventually have issues because of basic wear and tear. Replacing a toilet, bathtub, shower or basin will range from $200 to $1500 as a base price. Replacing pipes for small homes will $2000 to $2500 and continue to rise in price the bigger the home and the more bathrooms there are. Remodeling or adding a bathroom can be pricey, but if you have the budget for it, it is also very rewarding. Remodeling an entire bathroom starts at the base price of $6000, and adding even a modest half bathroom will start out at $4000. Retiling a bathroom will cost $800-$2500.

In the summer months, it's hard to imagine living in a house without air conditioning. However, older homes may not have a central air conditioning system, which means this may be an added cost for you at purchase of the house. Adding central air conditioning onto an existing forced air system will cost $2000 to $3000. Adding a heat pump to a forced air system will cost about twice as much. Repairing or replacing any part on a central heating or air conditioning system will be the most common expense and will cost $1200 to $2000.

These are the most common repairs on a home, and when looking for a house to buy it is important to keep the cost of these repairs in mind. Ask questions about the plumbing and the roof. If the house is perfect except for the bathroom, maybe work your budget around to ensure you will be able to remodel. If the house hasn't had a roof replacement for 25 years, perhaps you need to forgo another project. Remember, asking questions is key and budgeting for repairs, especially unexpected repairs, will allow you peace of mind in the future.


Are you considering a move? Would you like more information about the Mint Hill, Matthews and Charlotte area real estate market? Check out http://www.minthillrealty.com/

Why Now Is A Good Time To Buy A Home

Many may think that now is definitely not the time to purchase a house because times are tough, right? Wrong. As home values begin to diminish and interest rates linger at extremely low levels, for first-time home buyers it just may be the perfect time to start looking for that perfect house. Obviously if you have a secure job, it will be way easier to take those steps in order to put a down payment on a house, and eventually purchase something you can call your own.
Purchasing a home is a huge investment, especially for first-time home buyers. First, a buyer needs to determine how much money they can actually spend on a house. It is important to understand your funds and determine how much you can realistically afford. It is also important to study the market, and make sure that the potential house is something that you could see yourself living in. Purchase for the "big picture" of things, and make sure that you're in it for the long haul. It may be more profitable to purchase something that you can see yourself living in for a long time. Plan ahead, and make sure the neighborhood is up to your standards, focus on schools in the area (if you plan on having children), and also look for things that could possibly bring the value of the neighborhood down.

Sellers in this type of economy are more than likely willing (and prepared) to negotiate on housing prices. Make sure are able to make a bargain on the house, and still have some money left over in order to decorate. Also, because of the economy, houses are staying on the market a lot longer than they used to, which means that you will have more choices to pick from. Because there is a wide variety to pick from, you have a better chance to choose a home that fits all of your needs.

In this type of economy, the buyer has the power to name their price, which means more savings! Home buying variables could change 6 months from now, so why hesitate on purchasing? Those who are interested in making "safe" decisions and continue to rent are delaying their opportunity to build domestic wealth. You can also anticipate an increase in rent because of the tight times, so if you wait around for the right deal to come along, you might actually be missing out. The real risk is to wait to buy a home in this economy. Interest rates are at an all time low, and prices are starting to level off, so it's time to decide if you're ready to make a bargain!


Want more information about the Mint Hill, Matthews and Charlotte area real estate market? Check out http://www.minthillrealty.com/

Get off the Fence!

Are you sitting on the fence? Have you thought about buying that first home and you are just waiting for the right time? IT IS THE RIGHT TIME!

The first-time $8,000 home buyer tax credit has helped many people to get “off the fence” and it has now been extended through April! It is a buyer's market and there has never been better opportunities to get a great deal on a great home AND get money back. Now is the time to start looking for that new home!

Currently there is a decent inventory in the Mint Hill and Matthews areas of Charlotte that are perfect for couples and families seeking to take advantage of these great deals. Please check out my real estate website for featured listings.

I understand that the decision to buy a first home is a big one for my clients and I am dedicated to making sure that I give each and every one of my clients all of the information and the resources they need to make an informed decision. I spend as much time as possible BEFORE we ever look at homes to find out what you are looking for, what your lifestyle is, how your family will live in the new home and how your circumstances may change, (planning to add to yor family soon? Sending any off to college?). We look at your budget, your needs, your wants. When we finally get in the car and look at homes, I am very in-tune with what you want to see, and you have been educated on what you need to do to find the perfect fit for you. Rarely do I spend days looking at house after house after house with my clients, because I try to make sure we only look at the homes in the neighborhoods, at the price range, in the floorplan with the features you want!

Please consider working with me if you are seeking a new home in Charlotte or the Charlotte area. When you are ready, call Rich Ferretti! 704-564-0807


If you would like more information about the Mint Hill, Matthews and Charlotte area real estate market? Check out www.minthillrealty.com

Tips for Buying Foreclosures in the Charlotte Area

Many Charlotte area residents are considering foreclosed properties either as first-time home-buyers, or as investors. The number of available foreclosed homes is incredibly high--at 1.5 million right now, and more are expected to be available soon. This means great opportunities for bargain hunters, and plenty of possible pitfalls for home buyers as well!

Here are 7 tips for making sure you get a foreclosure that is right for you.

1. Don't get caught up in the "foreclosure frenzy"

Everyone loves a great deal and the idea of getting a home for a bargain, or even for less than it is worth can make people pretty excited--but that doesn't mean you should forget your common sense! Banks put repossessed homes back on the market at below-market prices because quick sales help avoid the expenses of keeping the home up, the property taxes, the insurance, heat and electricity. They need to get these houses off their books (and onto yours!) so they are willing to make a deal.

Those hard-to-believe prices may be golden opportunities, but they may also attract a frenzy of buyers who may bid the homes up until they are no longer bargains. Don't get caught up in a bidding war, and find yourself spending more than you can--or should for a property. Carefully consider what you want to spend, and when the home reaches that point in the bidding process, move on.

2. Contact lenders directly

Buyers looking for an edge, should establish relationships with asset managers at banks. The asset managers may know when new foreclosures hit the market, and can give you a competitive advantage. In the case of a short sale, you should talk directly to the property's asset manager. That way, if the short sale falls through and the bank repossesses the house, the asset manager knows you are still interested, and you could be in a situation where you get the advantage of a quick sale without other bidders.

3. Get pre-approved from "their" bank

If you're trying to buy a property from a certain bank, take the extra step to get a pre-approved mortgage from them. Lenders may be more inclined to accept your bid if they know they are also getting your business in the deal. (And you can always change lenders laters)

4. Consider fixer-uppers

Most bank owned properties, are "sold as is", and many foreclosed homes are in less-than-perfect condition. Since the former owners were often struggling to pay their bills before the foreclosure, they may have neglected routine maintenance, or even the big stuff"--or they chose to trash the property before vacating, removed the majot appliances, fixtures, wiring and other important pieces of a home.

While some lenders will make some repairs before the sale closes, many would rather sell the house to the next available bidder, so be willing to consider a home that needs some work, and just budget the repairs into your overall investment numbers.

5. Work with a real estate attorney

Once the bank agree to the sale, they will often want to move fast--and the real estate contracts are full of legalese that can be hard to understand. Choosing to work with a real estate attorney is a great solution, even in states where they are not required. A real estate attorney can assist you in making sure the contract is equitable and the property you are buying really is a deal!

6. Wait to make an offer

It may work in your favor to wait before making an offer on a property you really like. Let the house sit on the market a few days, and then talk to the agent--they may give you some kind of clue as to what a good number is compared to bids that have already come in--especially on a home that has LOTS of interest (but don't wait TOO long--a day or two will usually be plenty in a hot market).

7. Have an inspector and/or contractor look at the property

It is true with any home--but especially so with foreclosed properties...it pays to have a professional look at the "structure" and potential problem areas of the home before you make an offer. A professional home inspector and/or a contractor will be able to tell you about foundation cracks, heating and cooling systems, roofing issues and other needed repairs, and what it will cost to make the repairs, and get the home in working condition. A contractor may also be able to tell you what "could" be done in the future to make that home more livable, such as a patio or sunroom, or other additions.






Would you like more information about the Mint Hill, Matthews and Charlotte area real estate market? Check out http://www.minthillrealty.com/

Homebuyers...May Want to Wait to Move Up

While home prices in the Charlotte area are showing signs of recovery on the lower end of the market with the government's first time home buyer incentive bringing in new buyers, higher end home prices will likely take a while longer to rebound.

Why? There is an unfortunate, but large supply of homes that have, and will be hitting the market in 2010. Foreclosures caused by continued and rising unemployment and adjustable rate mortgages will soon be flooding the market, and affecting the larger and more expensive homes.

So if you are a first-time home buyer, or in the market for the mid to low-end home, now is an excellent time to take advantage of low interest rates, incentives and low-prices. But if you are looking at moving up into that big beautiful high-end dream home in Charlotte, you may do well to wait a year until the market has bottomed out, and home prices for that range at at their low!

If you would like more information about whether now is a good time to buy for you, contact Rich Ferretti at 704-564-0807.

Would you like some more information about the Mint Hill, Matthews and Charlotte area real estate market?
Check out www.minthillrealty.com

First Time Homebuyers Fueling the Surge

The first-time home buyers tax credit no accounts for nearly half of home sales according to an industry report released recently.

A whopping, 47% of all Americans who purchased homes this year had not owned one during the previous three years, (National Association of Realtors (NAR))--a statistic that was up from 41% of sales in 2008 and 36% in 2006.

The credit which was was recently extended through the middle of 2010 and expanded to include many existing homeowners, gives the first-time homebuyer incentive with a credit of up to $8,000 to buyers which they could deduct from their income taxes. This credit is fully refundable, even if the buyer has less than $8000 in taxable income.

"With the expanded criteria, many people looking at homes are eligible, " says Rich Ferretti of Jamison Realty in Charlotte, NC "This is a great time to be buying."

If you would like more information about the Mint Hill, Matthews and Charlotte area real estate market check out www.minthillrealty.com or call Rich Ferretti at 704-564-0807.

Buying a Home? You Need an Agent!

So many people make the same mistake: Not using a real estate broker when buying a home.

I understand the theory - afterall, who wants to pay more on something when they don't have to? But here is the truth...a real estate agent's service is free for the buyer. The seller pays our commission. That is right! A real estate agent is FREE to the buyer. And with this free service comes a bunch of seriously VALUABLE benefits--things that may be priceless in the end, like honesty, experience and professionalism.

Home buyers who decide to do it on their own often do not realize they are NOT represented and actually trust the seller to give them all info they need. This is WRONG! So many times a seller and their agent (or just the seller if the home is For Sale by Owner), will gloss over or withhold information to the buyer. Whether this is intentional or not, the buyer is left to trust whatever the sellers tell them about the home, property, area, & neighborhood. The un-represented buyer does not have the benefit of an agent who knows the area, the school districts and the local vendors whom s/he could refer. The un-represented buyer does not have the access to the comparables for the neighborhood, or homes that are going to be, (but aren't yet) listed in their dream neighborhood. And an un-represented buyer does not have the experience of offering just the right price on the home.

There are several other great reasons for having a buyers agent, but I want to hear from you. Have you ever bought a house WITHOUT an agent and been sorry? Or, what do you think the best thing was that your buyers agent did for you when you were buying your home?

Let me know -- I would love to hear your stories.

--Rich Ferretti

Looking for more information about the Mint Hill, Matthews and Charlotte area real estate market?
Check out http://www.minthillrealty.com/

Home Ownership: The American Dream!

A lot of people talk about the monetary reasons to be a first time home buyer. They should, those are great reasons! (And don't forget the first time home buyer tax credits!) Home ownership is a great investment, no doubt about it. But today, lets talk about the great non-financial reasons! Those little things that make the “Rent vs. Buy” equation tip over to “BUY!” While these reasons won’t pad your pocketbook, they will help contribute to a general sense of happiness and considerable peace of mind…Which, is priceless!

You are Finally, a Responsible Adult!
Mom & Dad can’t accuse you of being an irresponsible slacker anymore! First time home ownership is a tremendous hurdle, and pretty much one of the biggies! Along with having kids and getting hitched, home ownership says “I’m a grown-up!”

My Stuff! Isn’t it nice?
When you rent, you’re basically a transient. You know you’re probably not going to be there forever, so you probably don’t take care of the place all too well. (Hello – Security Deposit). Your also not to keen on doing any unneeded repairs, or sinking any money into remodeling. But when you own the joint – it’s yours! You want it to look nice--you take pride in your home. From the furniture to the floors, including the appliances – this stuff is yours, and you will buy it and treat it well.

Being Neighborly
Renters sometimes try to avoid their neighbors. But home owners try to make long-standing relationships with their neighbors. Your neighbors will lend you tools, sugar, and a hand when you need it. They will watch your house when you go on vacation, and feed your cat when you have an emergency. Neighbors are in it together, they are a “family.”

Staying Put!
Most of us hate moving every year or so. It’s awful! And now you don’t have to – you get to stay here forever and ever! (or until it is time to upgrade, or move into a better school district). It's time to plunk down some roots, get cozy, and settle in for a long haul.

And finally….It’s All Yours!
It is that simple – it’s your home. You can do whatever you want with it (well under certain circumstances…). And frankly, that is the greatest reason. Home ownership is empowering, enlightening, and incredible. You will never, ever, regret it….


Rich Ferretti - ABR QSC Epro
Jamison Realty
rich@richferretti.com
Direct:704-564-0807
Broker/Realtor, NC/SC


Want more information about the Mint Hill, Matthews and Charlotte area real estate market?
Check out www.minthillrealty.com

$8,000 Tax Credit!

Tick-tock-tick-tock-tick-tock…Do you hear that sound? Tick-tock-tick-tock…It’s the sound of time running out! On November 30th, the incredible home buyer’s tax credit of $8,000 will END! If you can take advantage of this opportunity, and haven’t – you absolutely need too! With property values at the most affordable in several decades, and plenty of fantastic property to choose from – you should seriously consider moving into action before the offer expires.

First, let’s explain this credit a bit….

Who is eligible for the tax credit?
-->First-time home-buyers (or buyers who haven’t owned a home in the last 3 years would also qualify as “first-time” buyers)…
-->Buyers who make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers could receive a partial credit.)

The Catch?
-->The buyers must live in the house for 3 years or more, or they will have to pay back the tax refund.
-->The refund amount is $8000 or 10% of the home’s value – whichever one is less.

Extra important – this is not a tax-deduction! It is a tax credit!
Since it is a tax credit, it will show up a tax refund for most people. For example, if you paid $5000 in taxes this year and after doing your taxes found out that the IRS owed you a $500 refund, you would now get $8500 back.

Most importantly - Yes! You have to close by November 30th as the program ends on Dec 1, 2009. They may extend this program but it has not been approved yet by congress to extend it. You can’t trust the boys in Washington to keep this stimulus plan going, so you need to jump onboard with a solid Realtor and move quickly.

While the time-frame sounds really small, a qualified Realtor with a great mortgage team will be able to make this happen to you. Commit the necessary time from your schedule to look at the right properties, and you can find your dream home and take advantage of this amazing financial opportunity.

Want more information about the Mint Hill, Matthews and Charlotte area real estate market?
Check out http://www.minthillrealty.com/

Credit Suisse US Housing Report

The other day (Sept 10, 2009) Credit Suisse released its US Housing Market report. Here are some of the highlights:

Home buying traffic is up slightly with the highest demand levels seen in investor-heavy
markets--meaning those who can make an investment in a second home or additional properties are doing do. The Credit Suisse Survey of Real Estate Agents reported another increase in traffic levels in August, primarily due to buyers taking advantage of the first-time buyer tax credit before it expires at the end of November. This combined with the demand from investors looking for below-market-value foreclosures increased the buyer traffic index up to 44.5, from 43.4 in July.

The first-time buyer tax credit of $8000 helping buyers to get “off the fence”--and the pending expiration of the credit seems to be enticing people to move. There is concern that the demand will wane after the credit has expired, but as markets improve, Credit Suisse expects to see more positive momentum.

The prices are still declining on higher-priced homes, but low end priced homes are stabilizing. Prices appear to have bottomed for those homes at the low end and those foreclosed and prices seem to be rising overall in the past 30 days in the Inland Empire, Los Angeles, and Washington, D.C., with stable prices in Dallas, Ft. Myers, and near-stable in Phoenix. Agents saw the weakest pricing trends in Atlanta, Austin, Charlotte, and New York.

Would you like more information about the Mint Hill, Matthews and Charlotte area real estate market?
Check out www.minthillrealty.com

Sellers: How to capitalize on the $8,000 tax credit

Time to capitalize on the federal tax credit of up to $8,000 for first time buyers is running out. As is the opportunity for home sellers to benefit from this incentive as well.

"If you have a home on the market, getting as many of the "first-time" buyers in as possible right now is even more important than usual," says Rich Ferretti of Jamison Realty, "the typical first-time home-buyer really wants to be able to cash in on the credit, and so they are in a buying mood. And time is running out"

For the first-time home buyer, it is easier to imagine themselves living in a clean, well-cared for, and functional space. As a seller, you can make your home more inviting to buyers by making sure the home-improvement projects are done. Your home will show better and bring in offers faster if it is "move-in ready".

Here are some ways to make your home sell fast to those first-time buyers:


1. Maintain and Stage. A fresh coat of paint and a serious look at decluttering will go a long way, but don't overlook what a professional Home Stager can do for you. Staging professionals boast that the cost of staging will always be less than the first price decrease--so it pays for itself! This will help make the house feel like a home to anyone who comes to see it!

2. Offer to Help Pay Closing Costs. First time buyers especially may need help with points or closing costs. if you can help with this, you will attract many more potential buyers, and may be able to close the one the counts!

3. Offer a Home Warranty. First-time buyers will consider it a huge selling point if you stand behind the house's integrity and that of the major working parts (roof, water heater, AC). You can offer a warranty that will take care of any needed repairs of the major items. Work through your agent to get this on paper, and the message to potential buyers.

4. Offer Mortgage Protection. Mortgage protection covers several months of mortgage payments in the event that the buyer becomes unemployed. This insurance is a great option for most buyers, and first-time buyers may feel especially inclined to choose a home that offers it.

5. Low Offers Aren't Always Bad. Just because an offer is WAY below what you would reasonably take, doesn't mean you shouldn't at least counter. The market is at a place now where buyers feel that they have the upper hand, and are being very aggressive looking for bargains. If you get a super low offer, don't dismiss them immediately, counter with an appropriate number. If they walk away, that is fine, but if they really want the home, you will see them again. Work with your Buyer's Agent to price the home right in the first place, and then to navigate the offers when they come in.




Want more information about the Mint Hill, Matthews and Charlotte area real estate market?
Check out www.minthillrealty.com

Weak Charlotte Job market still making homebuyers nervous

In 2008, Charlotte, NC was the 9th largest market in the US with 7,303 single-family permits. But then a recession hit and home sales have plummeted.

Then, this past June, the weak demand for homes and the and higher-than-normal home inventory lead to lower home prices. And home prices continued to fall and foreclosures added to the already-high inventory levels--adding to the decreased home prices.

Agents reported that their home buyers were unsure if the were were at the bottom of the recession and were waiting for better deals despite the current home price lows and the available $8,000 federal tax credit for first-time home buyers.

One of the newest concerns seems to be job security. So many people have watched friends and family laid off in the last year, and the uncertainty about their own jobs has made them hesitant to commit to a new mortgage, despite all the incentives.

Things are looking up, but many agents are finding that they can't get home buyer to to commit. We are finding that home buyers have the time, or are undecided, they wait for better deals.

What does this mean to you? Are you holding off buying a home because of a job concern? We would love to hear from you. Email Rich at Rich@richferretti.com.

Want more information about the Mint Hill, Matthews and Charlotte area real estate market?
Check out http://www.minthillrealty.com/

July 30th HERA laws

On July 30, 2009: The new Housing and Economic Recovery Act (HERA) laws go into effect today to protect home buyers. They require all mortgage lenders and mortgage brokers to help prevent deceptive lending practices and protect customers by helping them become more informed.

These changes are the standards to which I, and the other Real Estate Professionals at Jamison Realty have been adhering to throughout, however, not everyone has, and this has, in part produced the current housing market crisis. We applaud the government for making these practices into law

While these changes are all positive, they will take additional time to comply with, and therefore affect closing dates. Most of the changes will be transparent to the home buyer and the REALTOR® or Builder.

Want more information about the Mint Hill, Matthews and Charlotte area real estate market?
Check out www.minthillrealty.com

Buyers motivated by affordability, interest rates

We are in the most affordable housing market in 28 years. and low prices and low interest rates are attracting millions of home buyers to look for deals. However, the low prices are also causing home sellers to put off putting their homes on the market according to the new national Realtor.com® Homeownership Survey. Based on the Realtor.com survey, affordability is clearly driving more than two-thirds (65.2%) of potential buyers back into today's housing market.


Here are some other statistics:

--> 19.6% of prospective buyers say foreclosure bargains in their communities would motivate them to purchase a home.
--> An additional 15.5% said they're motivated to buy soon because they think prices are as low as they will go
--> An another 15.5% said they're motivated to buy before interest rates rise.
--> 14.6% of first time homebuyers say that the $8,000 Federal tax credit is the motivator to purchase a new home in the future.
--> 66.3% surveyed said they are not likely to consider buying a foreclosure in the future.

Are you interested in taking advantage of the current housing market?

Do you want more information about the Mint Hill, Matthews and Charlotte area real estate market?
Check out www.minthillrealty.com

Tax Credit for First Time Home Buyers

As part of the American Recovery and Reinvestment Act of 2009, a.k.a. the Stimulus Bill or ARRA, first time home owners are now eligible for a tax credit of $8,000. This credit, alongside some fabulous opportunities in the market, makes it an incredibly keen time to buy. Homes in Mint Hill and Matthews are still showing excellent resale value, so buying now when the market is accommodating is a key. The staff of Jamison Realty has spent time looking over the ARRA, and has all the answers for the consumer.

The following list summarizes the eligibility requirements of this credit:

When – Home owners who purchase their house between January 1, 2009 and December 1, 2009 are eligible for the credit.

Who – The law states that the credit is available to first time home buyers. However, the law is a bit more flexible and allows anyone who has not owned a home for three years to qualify. For example, if you sold your home on May 24, 2006, you will have to close on your new home subsequent to May 24, 2009 to qualify. The closing date in this situation would make a significant difference on your wallet. It certainly makes purchasing a home in beautiful Mint Hill, NC a stunning investment!

How – You will receive the tax credit when you file your individual tax return. As part of this filing, you will need to complete Form 5405 which determines the amount of credit you will receive. The credit can be claimed on either your 2008 or 2009 tax return. If you already filed your 2008 tax return, you can amend the return to obtain the credit. And…you can buy up to the end of 2008 and still ask for the amendment. For example, say after months of looking you and your realtor finally find a home in Matthews, NC. By the time you have gone to closing with your new piece of Matthews' real estate, it is nearly Christmas. That is no problem, the ARRA bill provides for that and you can amend your 2009 return and receive the cash back. Or, you simply file it on 2009!

What – Everyone should understand that this is a credit to the tax payer, not a deduction. A tax credit is a dollar for dollar benefit to the tax payer. So a first time home buyer should be $8,000 wealthier as a result of this credit. A deduction merely decreases your taxable income. Furthermore, this tax credit does not have to be repaid to the government like the “credit” available to first time home buyers in 2008. If you have questions, the staff at Jamison Realty can provide the answers.

And - The credit shall be equal to 10% of the purchase price of the home, not to exceed $8,000. Since the median home and condominium price in Charlotte, North Carolina is significantly more than $80,000, most will receive the full $8,000 credit.

Also - Single taxpayers with incomes up to $75,000 and couples with income of up to $150,000 qualify for the full credit.


It's a great time to buy!
Rich Ferretti

Want more information about the Charlotte area real estate market? Check out www.minthillrealty,com

Existing Home Sales Rebounding!

In April, sales of existing homes in the US grew 2.9 percent in April, recovering from a decline in March. The National Association of Realtors (NAR) reported that the sales were due in large part to the low prices on new builds.

NAR said sales of homes increased to a seasonally adjusted annual rate of 4.68 million units in April from a downwardly revised pace of 4.55 million units in March. They had initially estimated the March rate at 4.57 million units. The April sales exceeded the forecast of 4.65 million units.

This is good news, depite the fact that sales this April were 3.5 percent below the 4.85 million-unit level in April 2008.

Buyers all over the country are being spurred on by lower prices. "We have definitely seen an uptick in both interest and home sales here in Mint Hill" said Rich Ferretti of Jamison Realty, "it is a great time to buy, especially for first-time homebuyers."

First-time homebuyers, buyers who have not owned a home in three years, are eligible for a temporary federal housing tax credit of up to 8,000 dollars for principal homes bought this year through November 30.

Home mortgage interest rates are hovering at historic lows, causing the buying surge. Freddie Mac reports that mortgage rates fell in April to a low last seen in 1971, at 4.81 percent for a 30-year fixed-rate mortgage, compared with 5.92 percent a year ago.

The housing market is certainly showing new life, and yet there remains a great opportunity for buyers to get a phenomenal deal.

Rich Ferretti
Jamison Realty

Want more information about the Mint Hill area real estate market?
Check out www.minthillrealty.com

5 Reasons to Buy A New Home This Year

Homeownership is probably the most intrinsic part of the American Dream. Owning a piece of land, however small or modest, is an ironclad investment, a lifetime legacy, and a boost to the ego unmatched by many modern fads. I’ve compiled 5 unbelievably solid reasons to dive into the pool, and buy a home.

1. FHA limits for the Charlotte area have been raised to $303,750, and with FHA loans, you only need 3.5% down and a minimum credit score of 620. (Conventional loans are still more restrictive, typically 5% down on conforming loans and a credit score of 700 or above.)

2. You have a large inventory to choose from. Real estate in Matthews and Mint Hill, always exceptionally popular locations for the discriminating buyer, are at an incredibly affordable rate and there is a plethora of welcoming properties. The team at Jamison Reality has "helped people home" in both lovely towns, and they can take work with you to make sure your selection appeals to tastes and pocketbook.

3. Nationally, the housing market, while still down sharply from its peak, has shown signs of stabilizing, a step toward recovery. When the housing market moves back up, your home will increase in value with no real effort on your part. As the economy continues to thrive, the discounts, incentives, credits and rebates will end. If you buy now, you will get in on the ground floor or a bargain that could eventually lead to an investment windfall for you.

4. Mortgage rates are historically low. Long-term mortgage rates this week reached the lowest level since at least 1970, falling for the third consecutive week. Freddie Mac’s weekly rate report says the average 30-year; fixed-rate mortgage fell to 4.78 percent, matching a low set April 7. It is the lowest rate on such mortgages since Freddie Mac started keeping track in 1970.

5. You can get a federal tax credit: The Fed's have revised the Tax Credit from last year to a much better program. Effective for purchases on or after January 1, 2009 and before December 1, 2009, Purchaser will receive up to $8,000 tax credit. This program is available to anyone who has not purchased in the last three years. If the home is sold within three years, the full amount will be recaptured on sale of the home. Otherwise, this is a great program and should help spur more sales during the months ahead.

Rich Ferretti
Mint Hill & Matthews, NC

Want more information about the Mint Hill, Matthews and Charlotte area real estate market?
Check out www.minthillrealty.com

Is Home Ownership For You?

Are you considering taking advantage of this buyer's market by becoming a homeowner in Mint Hill or Matthews?

Buying a home is the largest purchase most people will ever make. Home ownership has great benefits, and it also comes with certain responsibilities. Are you ready for home ownership?
Look at your current situation and determine if:

-->You have a steady, reliable source of income and a steady employment history for at least two years. Freelancers, consultants and other self-employed people should talk to a mortgage broker to work out the details.

-->You have a credit history--and a decent credit score. Banks need to know that you have a proven track record of borrowing money and paying it back.

-->Your total debt is manageable and you can afford to take on the costs associated with home ownership. Nobody wants to see a potential buyer default. It is great to shoot for the moon, but plan your purchase according to your wallet.

-->You have money saved for a down payment and closing costs or you have access to other sources of funds, such as an employment bonus, tax refund, or a gift from a relative.

And remember, the mortgage is not the only expense you need to consider. Your new home comes with other potential budget items such as repairs, maintenance, taxes, landscaping, etc.

Home ownership is an investment in the future, and I don't think there is any better investment right now than a house in Mint Hill or Matthews. Mint Hill and Matthews are popular, affluent towns near Charlotte, NC. Currently selling at amazing prices, a home in Mint Hill or Matthews will likely have a good resale value in the future. With a selection new and existing homes, these areas are perfect for retirees, young people, or a family, and the quick drive to Charlotte makes it perfect for a commute.

If you would like to consider home ownership in Mint Hill or Matthews, please give me a call at 704-846-3663. There are currently incentives for first-time homeowners and record low interest rates to take advantage of, so call today!

Want more information about the Mint Hill, Matthews and Charlotte area real estate market?
Check out http://www.minthillrealty.com/

Why Get Mortgage Pre-approval?

Dear Rich:

I am interested in buying a home in Mint Hill (I am a first time home-buyer) and I am wondering if you think it is necessary to get a pre-approval - or just a pre-qualification? My credit is good and I just got a raise in my job, so I don't know if this is a necessary step or what I would do to get this before I start the home search.

Ralph

Dear Ralph:

Starting a home search? Go into it with a pre-approval, not just a pre-qualification, for a mortgage.

A pre-qualification is a simple and informal process where you get an estimate from a bank regarding how much you will likely qualify for if you apply for a mortgage with that bank. It gives a ballpark figure, but it’s not a solid commitment. Many factors, such as credit scores and outstanding debt, may actually affect how much you’ll be approved for.

A pre-approval is a much more reliable. The bank draws up a letter pre-approving a mortgage up to a certain amount. To get that pre-approval, you’ll supply a statement of earnings and assets, and the bank will pull a credit report.

If you have a pre-approval in hand, it demonstrates you are serious. It also gives you an edge in several ways:

--> If you are one of two sets of buyers looking at the same house and making approximately the same offer, guess who usually wins? You got it! The ones who have a pre-approval typically get the house.

--> Buyers with a pre-approval often have more bargaining power. If the sellers know they have an interested pre-approved buyer, they are more likely to be open to negotiation.

--> Possession of a pre-approval can speed up the closing.

One word of caution: If any of your conditions change from the time you apply for a pre-approval to the time you go for the mortgage (such as employment status or debt load), the pre-approval may no longer be valid.

In the long run, getting a pre-approval is worth the additional time and effort.

Good Luck!
Rich Ferretti

Want more information about the Charlotte area real estate market? Check out www.richferretti.com