Real Estate Information

There was a nice article in the South Bergenite about the Realtor of the year award. Here is the link http://www.northjersey.com/community/announcements/67120037.html

There is still time to get the tax credit, but you are going to need to contract on a house in the next few days. The absolute shortest time it can take to close with a mortgage is 30 days and that is only if you start everything immediately (home inspection, mortgage application and title work) and is only if everything goes smoothly. In order to qualifty for the credit you need to close by 11/30/09. If you close on December 1 or later you cannot receive the credit unless the current law is extended. there are a number of bills in Congress to extend this credit and the National Association of Home Builders, the National Assiciation of REALTORS and the Mortgage Bankers Association have sebt a joint letter to President Obama asking for his support for an extension. Here is their letter:

Dear Secretaries Geithner and Donovan and Dr. Summers: 

The undersigned trade associations have supported the first-time homebuyer tax credit as an effective housing stimulus during the current economic crisis. Congress established the homebuyer credit as part of the Housing and Economy Recovery Act of 2008 and it was subsequently expanded in the American Recovery and Reinvestment Act of 2009. The Internal Revenue Service (IRS) recently reported that over 1.4 million taxpayers have benefited from the tax credit as of August 2009. 

The current global credit crunch and economic recession began in the U.S. housing market and recovery will not be complete until the housing market returns to economic health. In normal times, housing represents approximately 15% of U.S. gross domestic product, with numerous spillover benefits into other parts of the economy. Although we are seeing some improvement in the housing market, it is essential that the favorable impact of the first-time homebuyer credit be sustained beyond the upcoming expiration date of November 30, 2009. 

The undersigned trade associations request your support for the extension of the first-time homebuyer tax credit for twelve more months. 

Economic Impacts of Housing
As the housing markets began to falter, the economic ripples were felt across a number of industries. This highlights that housing is a pillar of our economy, and emphasizes the need to ensure we do not jolt today’s very fragile housing market just as we are starting to see signs of stabilization. As the housing market recovers, so do a number of other businesses, including small businesses that rely on family expenditures that accompany home purchases. 

NAR has estimated that the first-time homebuyer tax credit program has generated approximately 355,000 home sales above what would have occurred in the absence of a credit. The credit has also allowed greater mobility among sellers. Existing homeowners are able to relocate (or simply move to a different home) because their current home has been sold to an eligible tax credit buyer. These entry-level, credit-eligible purchases have helped to reduce the glut of homes presently for sale on the market. 

This increased housing activity leads to other benefits as well. A December 2008 report by the National Association of Home Builders (NAHB) examined the spending behaviors of those who recently purchased a home. The study showed that buyers of newly-constructed homes spent an average of $12,332 on additional goods and services. Those who purchased an existing home spent an average of $8,927. The report indicated that this money is spent in three main areas: property repairs and alterations, appliances, and furnishings. NAHB has estimated that this spending, in addition to other economic benefits connected to housing activity stimulated by the tax credit program, has produced 187,000 jobs.

Importantly, the tax credit has produced tangible effects with respect to the imbalance between supply and demand in the housing market. New home inventory has continued to fall due to dramatic declines in construction. In addition, a welcome pickup in sales has also reduced inventory. Consequently, months-supply currently stands at 7 months, down from 12.4 months in January 2009. A healthy housing market ideally has 5 to 6 months-supply. Likewise, months-supply of existing homes on the market has fallen to 8.5 months, down from its high of 10.6 in November 2008. 

Achieving equilibrium between supply and demand for housing is critical to stabilizing housing prices, and therefore household wealth. An extended homebuyer tax credit is a critical policy for achieving this goal. 

Conclusion
The undersigned trade associations believe that the first-time homebuyer tax credit has had a stimulative impact on our economy. We support extending and even expanding it so the credit can help more buyers and sellers. As we approach the sunset date of the current $8,000 tax credit, we urge Congress to expand the program to include all purchasers of principal residences, increase the credit, make the funds available for closing, and extend the overall program by at least 12 months. 

Our fragile economy is just beginning to show signs of recovery. We should not jeopardize that recovery by letting this tax credit expire. The homebuyer tax credit is helping hundreds of thousands of Americans realize the American dream, and it is creating thousands of jobs that rely on housing. Problems in the housing industry led us into a global recession and housing incentives can help lead us out of the recession. 

Our members greatly appreciate the efforts that the current administration has made by helping troubled homeowners to stay in their homes, providing Treasury support to the secondary market for mortgages, and shoring up the housing industry through the first-time homebuyer tax credit. We encourage you to finish the job already started by extending and expanding the current first-time homebuyer tax credit. 

Most sincerely,
Mortgage Bankers Association
National Association of Home Builders
National Association of Realtors 

For more information, visit www.mbaa.org, www.nahb.org or www.realtor.org. 

The above information is from RISMedia

I had quite a surprise today at the Annual Breakfast of the RealSource Association of REALTORS®. One of the items on the agenda was the awarding of the REALTOR® of the Year award for 2009. In 2008, I knew that I was being considered for the award, but the Board decided to give it to one of my colleagues at ERA Justin Realty, Cathy Vick, who in my opinion, was much more qualified and deserving. So this year, I didn't even think about it, because I figured they would never give the award to someone from the same office 2 years in a row. Last year's winner, Cathy, was announcing this year's winner, and as she was reading the accomplishments, I said to myself, "that sounds like me" and sure enough, it was me. So I am honored to be the 2009 RealSource REALTOR® of the Year and I thank everyone on the committee. This also means that ERA Justin Realty has now had 2 consecutive award winners and we have only been a member of this Board of REALTORS® for  2 years, which I think must be some kind of record. Again, thank you to everyone who voted for me. I was very surprised.

Glenn Elliot receiving the RealSource Association of REALTORS® REALTOR® of the Year Award from last year's winner Cathy Vick and RealSource President Patrick Quinn

I had a question recently which I didn't know the answer to. It was "can you buy a 2 family home and qualify for the $8,000 tax credit. Everything I have seen about the credit said that it applied to one family homes, condos, co-ops, house trailers and even house boats as long as it was your primary residence, but I never saw anything on 2 families. So I searched the IRS web site and discovered that 2 families do qualify as long as it's your primary residence. Here is the answer that I found on http://www.irs.gov/newsroom/article/0,,id=206291,00.html

Q. I purchased a duplex home with two separate dwelling units. I will live in one dwelling and will rent out the other dwelling unit and report the rental income on Schedule E. May I qualify for the first-time homebuyer credit, and what amount do I use for the purchase price to determine the amount of the credit? 

A. Yes, you may qualify for the credit for the dwelling unit that you use as your principal residence. To determine the amount of your credit, you must allocate the purchase price of the duplex between the two separate dwelling units. Your credit is 10% of the portion of the purchase price of the duplex allocated to your dwelling unit that you use as your principal residence, up to a maximum credit of $8,000. You may not use the entire purchase price of the duplex to determine the amount of your credit.

If you are a homeowner who is current on your mortgage payments but unable to refinance to a lower interest rate because your home value has decreased, you may be able to refinance. Visit http://makinghomeaffordable.gov/refinance_eligibility.html for qualifications.

If you do not qualify for this program and if you have a hardship which makes it imposible to keep making you mortgage payments, you might be able to have a "short sale" which means selling the house for less than the mortgage and the bank forgiving the rest. Call me at 1-877-85-Glenn (1-877-854-5366) for more details>

$8,000 Tax Credit Explained. I just found this get video from the Illinois Association of REALTORS explining the tax credit. If you want to take advantage of this credit, you need to hurry because you must close by November 30, 2009 or no $8,000 from you Uncle Sam.

This is one of a series of videos from the New Jersey Association of REALTORS®. This one is titled"sick of All the Yard Work"and with winter coming it might be time to think about being sick of all the snow. Here is the video

My web site, www.GlennSellsNJ.com, has been completely redesigned. All of the information is the same, but it looks completely different. You can see some of the new design here. Check it out by clicking home above. I hope you like it.

The widget below shows all of my current listings. Use the arrow to find the listing that you want to see and then click on the photo to see the video tour or click on view all to see all of my tours. Enjoy!!

The New Jersey Association of REALTORS® (NJAR®) is doing a series of comical but informative videos about buying a home. The is the latest one. I hope that you enjoy it. After the video is a counter from NJAR® that tells you how long until the $8,000 tax credit expires on November 30, 2009. But remember, you need to close by this date, so you need to go into contract soon!!