This blog has moved

This blog is now located at http://herald-dispatchblogs10.blogspot.com/.
You will be automatically redirected in 30 seconds, or you may click here.

For feed subscribers, please update your feed subscriptions to
http://media.herald-dispatch.com/blog/welcomehome/atom.xml.

Could a Huntington City Ordnance Be Making It Harder To Find Homes For Sale?

Due to the recent enforcement of a city ordnance that has been around for quite some time, real estate company signs and other business signs have been removed from city right of ways and fines have been issued. The areas in question by the ordnance are intersections, right of ways, and the area between the sidewalk and street. The defendant of this ordnance could be fined up to $500 or imprisoned for not more than 30 days or both. This could be a pretty steep penalty for such an offense.


For many years, prospective home buyers have used these type of signs to find homes for sale in area city neighborhoods. Open house signs have can be seen throughout the Tri-State area during the ever popular Sunday afternoon open houses directing prospective home buyers to the homes on showcase. Internet mapping sites have helped with finding the locations of these homes as well, but directional signs have been one of the historical ways that has been used throughout many decades of business in assisting buyers searching for a home. Some area residents do not have their own personal computer that can be used for accessing what is on the market and the locations of these homes. Some buyers drive around searching for homes for sale and with the elimination of the directional signs at intersections throughout the city, finding that new home may be more of a challenge.

With the enforcement of this ordnance in the city, there are some options for prospective home buyers in trying to locate your next home.

1. This new challenge makes it even more important for the use of a real estate agent in the search for your new home. Real estate agents can help direct prospective home buyers to home listings in the city as well as guide the home buyer throughout the home buying process.

2. After searching online for your new home, prospective home buyers can use an internet mapping site for locating these homes in the city.

3. Prospective home buyers can visit the local Chamber of Commerce and/or Convention and Visitors Bureau to get a map of the city to use in locating homes on the market for sale.

The enforcement of this city ordance has made the intersections less congested with signs and in turn made the city look a little cleaner. The question that I ponder is how will the enforcement of this ordnance effect city residents trying to sell their home in a challenging real estate market? Will it help or hurt? Is there some sort of compromise that be made for all sides involved?

For more information on the city ordnance in question, see the following link:
http://huntington.fnismls.com/Paragon/AssociatedDocs/HUNTINGTON/MLSSharedDocs/BOARD%20INFORMATION/CITY%20BUILDING%20ANDHOUSING%20CODE%20%20%20Signs.pdf

Also, for more details or questions concerning this ordnance contact your local city councilperson or another representative of the city.

Do you have a real estate related question or an idea for our Welcome Home blog? Feel free to contact me at todd@toddnelson.com

Top Fixes Recommended By Some Home Inspectors

Buyers today are more educated and demanding than they were in the past. It should not be surprising to a seller that a buyer would ask for a home inspection before signing a hefty purchase agreement. Therefore, it would be wise for homeowners to look at the areas where most home inspections fail. Start by fixing those areas up in advance, before you’re ready to place your house on the market.

The most frequently found problem area is water in the crawl space or basement. Poor drainage can result in water damage that will be more than apparent to an inspector. This can be an expensive problem to fix.

Start by re-grading the soil around the foundation of the home where water seems to be entering, or invest in waterproofing. It’s also a good idea to invest in a dehumidifier to remove moisture on an ongoing basis.

There are some areas that are more prone to water in the basement than others. Most buyers know if a little water is to be expected or not.

The second most common problem found by inspectors is poor wiring. The wiring in your home should be up to code, and should have sufficient overload protection.

Sometimes the best way to be sure the wiring in your home is in good shape is to hire a home inspector, or electrical contractor to check it out for you. Even if you’re not selling your home right now, you would want to make sure your family is living in a house that is safe from fire hazards.

Another major problem found in certain areas, is termite damage. If you begin to suspect at any time that your home may have termites, it’s urgent that you call a pest control service right away. This particular problem needs to be taken care of quickly.

Other areas that should be looked at as potential problems are the heating systems of your home, structural damage, such as extensive cracks in the walls or ceiling, or leaky roofs.

When deciding what is important to fix, put yourself in the place of the buyer. If you were considering buying the home you live in now, what would you consider important that the seller fix?

Handle problems in condition or construction with estimates and repair by a reputable contractor. Sooner is better than later, especially when the demands of moving and evaluation of the buyer run high.

Anything you can do to make your home more saleable in advance may mean more money and less hassle when you’re actually ready to sell. For additional information, feel free to contact a local home inspector or contractor. If you have an idea for a future story on my blog, feel free to email me at todd@toddnelson.com

Fire Safety In the Home

If you haven’t taken the time to discuss fire safety with your family, then you really should.  Here are some of the rules of fire safety your family needs to know.

 1)  Install smoke detectors on each level of your home and outside of each sleeping area.

2)  Test batteries in smoke detectors and change them every six months.  If you change them on July 4th and New Years, this will remind you.

3)  Have an escape plan and practice it.

4)  If you encounter smoke, try an alternate route and crawl on your hands and knees.

5)  Don’t open a door if it feels hot.  If it feels cool, brace your shoulder against it and open it slowly.  If you see smoke, close the door and escape through a window or alternate route.

6)  If your clothes catch on fire, STOP, DROP, and ROLL

7) Once you’re out, stay out!

Check with your local fire department or insurance company for further advice and ideas.

West Virginia Energy Star Sales Tax Holiday!

Beginning on the first day of September at 12:01 a.m. and ending on November 30th at midnight 2009 there will be an exemption for consumer sales tax on purchases of energy efficient products of $5,000 or less per qualified product that carry the ENERGY STAR label. This exemption applies to purchases for noncommercial home or personal use. It does not apply to purchases of items for use in a trade or business. An ENERGY STAR qualified product is one that meets the energy efficient guidelines set by the U. S. Environmental Protection Agency and the U. S. Department of Energy. The ENERGY STAR label is now on over 50 product categories that include the following:

Clothes Washers, Dehumidifiers, DVD Products, Televisions, VCRs, Compact Fluorescent Lamps (CFL), Light Fixtures, Decorative Light Strings, Computers, Dishwashers, Refrigerators and Freezers, Air Conditioning, Boilers, Fans, Furnaces, Heat Pumps, Programmable Thermostats, Battery Charging Systems, Cordless Phones and Monitors, Printers and Scanners

While protecting the environment, energy efficient choices can save families about one-third on their energy bill without sacrificing features, style or comfort by using products that have earned the ENERGY STAR® . A complete list of these products can be found at www.energystar.gov

There is no requirement that qualifying items be new, when purchased, to qualify for the Energy Star Holiday exemption. If a used product does not have the original ENERGY STAR label on it, contact the manufacturer by telephone or website to determine if the item was originally sold as an energy efficient product.
There is no limit on the number of qualifying items that can be purchased during these sales tax holidays. An exemption certificate or other documentation is not required to receive the exemption as the holiday relates to the nature of the product sold.

This may be a good time to update some of kitchen appliances and other qualified items in your home to help spruce it up and to add value.

For more detailed information visit the following link:

http://www.state.wv.us/taxrev/taxdoc/TSDPublications/tsd426.pdf

http://www.wvtax.gov/energyStarSalesTaxHoliday.html

Have you experienced a long wait to close on your home loan recently?

The real estate industry has experienced many changes in the past year. As seen on television, the real estate market has been dealt with an influx of foreclosures, not as many homes selling as in recent years, and various changes that have been made for loan programs offered by most lenders.

The changes to various loan programs is having an impact in our region. Certain little to no down payment loans have been eliminated, minimum credit scores for certain loans have been raised, and some lenders are being more critical of the home loans that are being made.

As most of us are aware, some banks have experienced major losses and some have sought help from the federal governement to help offset those losses. The federal government came to the rescue and helped many banks in need. The goal was to help free up credit to help get the economy moving again.

The result of these actions have not exactly been what was intended. Loans are still being made, but did this bailout free up credit to help the real estate industry among other industries get out of the downward movement? It may have helped some, but where is all of the bailout money gone that went to these banks? Are banks passing it on to consumers and businesses in the form of loans and credit to help spur the economy?

An issue that I have noticed that has recently developed is the time it takes to get a home loan. Various lenders in the area have experienced an increased amount of loan applications for refinances of home loans and for purchases due to the very appealing interest rates. As a result many lenders have been dealing with the need of more time to get these loans closed. Lenders have been challenged with stricter underwriting guidelines of home loans that have also slowed down the process. Some lenders continue to close home loans at about the same rate of time as in the past, but others struggle to meet deadlines for real estate contracts and leave the consumers involved wondering what is to happen next.

Have you experienced a long wait for the refinance of your home or the sale or purchase of a home? I would like to hear from you on what your experiences has been. Please do not name companies or people involved. It would be interesting to hear from what you experienced during the home loan process.

If you have any real estate related question or an idea for a story for the real estate blog, email me at todd@toddnelson.com.

Why Have A Home Inspection When Buying A Home?

There are various steps in the purchasing process, but one very important step to address is a home inspection. Although not usually a requirement, I recommend that everyone get a home inspection before purchasing a home. As a Realtor, I do not know everything about the home that I am selling. I use the knowledge obtained from the seller and what visually can be seen during a visit to the home in marketing the property. Sometimes the seller does not know of issues that may need addressed on their home.

A home inspector is usually more thorough than an appraisal on the property which is more focused on the features, overall condition, and value of the home. The home inspector also is usually hired by the buyer to inspect the home. Some of the items inspected, but not limited to just these items are the structure, the heating/cooling system, electrical, plumbing, attic, crawlspace or basement, roof, and other parts of the home. The inspector will usually give the buyer a written report detailing their findings. Some inspectors identify the items as a major concern, a safety issue, or to monitor the issue. You can visit the West Virginia Association of Home Inspectors at http://www.wvahi.org/ for more information about local members and home inspections. In West Virginia, home inspectors are required to be licensed and more information on home inspector licensing can also be obtained from the above website.

A home inspection gives a buyer more knowledge about the home that the buyer plans on purchasing. This inspection should also help with informing the purchaser of possible future repair costs. Costs of home inspections vary from around $250 to $500 and possibly more depending on the size and age of the home. Ask the home inspector their costs, education background, and you can also ask other questions listed on the above website. A home inspection provides a buyer with more information on the property that the purchaser may not have known from visually viewing the home on their own. Feel free to contact me with any other questions that you might have on the subject.

The First Time Home Buyer Tax Credit Is Not Only For Home Buyers Who Have Never Owned a Home

Did you know that under the first time home buyer tax credit that was recently passed for home purchases in a certain time period during 2009 is not only for home buyers who have never owned a home?

As obtained from www.federalhousingtaxcredit.com the following are some common Frequently Asked Questions:

1. Who is eligible to claim the tax credit?

First-time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.


2. What is the definition of a first-time home buyer?

The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.

For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.


3. How is the amount of the tax credit determined?

The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.


4. Are there any income limits for claiming the tax credit?

Yes. The income limit for single taxpayers is $75,000; the limit is $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.


5. What is "modified adjusted gross income"?

Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine "adjusted gross income" or AGI. AGI is total income for a year minus certain deductions (known as "adjustments" or "above-the-line deductions"), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.

To determine modified adjusted gross income (MAGI), add to AGI certain amounts of foreign-earned income. See IRS Form 5405 for more details.

6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?

Possibly. It depends on your income. Partial credits of less than $8,000 are available for some taxpayers whose MAGI exceeds the phaseout limits.


7. Can you give me an example of how the partial tax credit is determined?

Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by the phaseout range of $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.

Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by the phaseout range of $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.

Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.


8. How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?

The most significant difference is that this tax credit does not have to be repaid. Because it had to be repaid, the previous "credit" was essentially an interest-free loan. This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply.


9. How do I claim the tax credit? Do I need to complete a form or application?

Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on Line 69 of their 1040 income tax return. No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests. Note that you cannot claim the credit on Form 5405 for an intended purchase for some future date; it must be a completed purchase.


10. What types of homes will qualify for the tax credit?

Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.


11. I read that the tax credit is "refundable." What does that mean?

The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.

For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).


12. I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?

Home buyers in this situation may file an amended 2008 tax return with a 1040X form. You should consult with a tax advisor to ensure you file this return properly.


13. Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?

Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been "purchased" on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after January 1, 2009 and before December 1, 2009.

In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.


14. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?

Yes. The tax credit can be combined with the MRB home buyer program. Note that first-time home buyers who purchased a home in 2008 may not claim the tax credit if they are participating in an MRB program.


15. I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?

No. You can claim only one.

16. I am not a U.S. citizen. Can I claim the tax credit?

Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of "nonresident alien" in IRS Publication 519.

17. Is a tax credit the same as a tax deduction?

No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.

A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $8,000 in income taxes. If the taxpayer receives an $8,000 deduction, the taxpayer’s tax liability would be reduced by $1,200 (15 percent of $8,000), or lowered from $8,000 to $6,800.


18. I bought a home in 2008. Do I qualify for this credit?

No, but if you purchased your first home between April 9, 2008 and January 1, 2009, you may qualify for a different tax credit. Please consult with your tax advisor for more information.

19. Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?

Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment.

Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.

Further, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. Some state housing finance agencies, such as the Missouri Housing Development Commission, have introduced programs that provide short-term credit acceleration loans that may be used to fund a downpayment. Prospective home buyers should inquire with their state housing finance agency to determine the availability of such a program in their community.

The National Council of State Housing Agencies (NCSHA) has compiled a list of such programs, which can be found here.

20. If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?

Yes. The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.

Taxpayers buying a home who wish to claim it on their 2008 tax return, but who have already submitted their 2008 return to the IRS, may file an amended 2008 return claiming the tax credit. You should consult with a tax professional to determine how to arrange this.

21. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?

Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.

Please feel free to contact me at todd@toddnelson.com with further questions or your accountant to get more details about this great opportunity.

West Virginia Housing Fund Offering Below Market Interest Rates For Newly Constructed Homes!

Have you been thinking of building your new dream home or about purchasing a new home that has nevered been lived in, before? If so, the West Virginia Development Fund is now offering a new program to save you a considerable amount of money.

The West Virginia Housing Development Fund's 3-2-1 buy-down program allows homebuyers to secure loans substantially below-market interest rates.

For example, You lock in a mortgage rate of 5 percent on your new home. Under the new program, the interest rate will be lowered to 2 percent the first year, 3 percent the next and 4 percent the final year before returning to 5 percent for the remaining years of the loan.


This program which started this month does not require a borrower to be a first-time homebuyer and there is no income or home price limits.

The main stipulation is that the borrower must have a contract to buy a new home that is being built, or one that nobody has ever occupied.

This program most likely will not last a long time. The housing board authorized $40 million in loans to be offered from participating lenders across West Virginia. This money could last possibly three months. These discounts will only be available for about 200 to 300 new homes and possibily fewer.


It is suggested that the potential home buyer first speak with a local lender about this program. Information on this program has already been provided to banks, credit unions, and mortgage brokers about the 3-2-1 program. There is a few additional documents to fill out to sign up for the program.

For more information, contact a local lender or the West Virginia Housing Development Fund office at 877-WVA-DREAM, or go to www.wvhdf.com.

Do you know some of the names of the neighborhoods in the Huntington?

As with many cities there are neighborhoods within its boundaries. Huntington has various neighborhoods within its boundaries.

One such neighborhood surrounds the Ritter Park area. It is called the Southside area. It is made up of typically older two story homes, apartment buildings, and beautiful estate type homes.

Another neighborhood surrounds St. Mary's Medical Center. It is called the Highlawn area. There is an elementary that carries the name as well, Highlawn Elementary School.

The West End area of Huntington most likely would include the Central City part of town and areas around Washington Ave, Jefferson Ave, and St. Cloud Commons.

Westmoreland is a neighborhood that actually is in Wayne County and includes the area starting around the Wayne County line to about Camden Park.

There are several other neighborhoods in Huntington. Can you name more? I purposely left some neighborhood names off to see if anyone can respond with other neighborhoods and their characteristics.

If you have a real estate or a topic that you would like covered in the Real Estate Blog. Email me at todd@toddnelson.com.

Maximizing Value When Remodeling Your Home

Thinking about remodeling projects for your home?

Before beginning a significant remodeling project, think about what project investments would have a greater return if selling the home may be in the future. Some people may think that they never will sell, but later because of circumstances, decide to sell their home. Some of the best returns of investment come from remodeling the kitchen or bath. Believe it or not, Remodeling Magazine’s 2005 Cost Versus Value Report illustrates that doing a midrange remodel of a bathroom can translate into a national average of 102.2% recoup on the initial investment. A minor kitchen remodel consisting of such things as replacing the appliances, adding new fixtures, countertop, new flooring, painting, and changing cabinet fronts and drawers could translate into a national average of 98.5% recoup on the investment. Other ideas for remodeling and their national average recoup of investment include roofing replacement (84.7% recoup), siding replacement (95.5% recoup), window replacement (89.6% recoup), and basement remodel (90.1% recoup).Certain remodeling projects such as additions should seriously be evaluated.

The cost of additions can possibly price your home out of the market as compared to homes in your area. It may be cheaper to sell your home and buy a home that already has what you want. According to the Cost versus Value Report a bathroom addition could translate into an 86.4% recoup, a family room addition (83% recoup), and a main bedroom suite addition (82.4% Recoup). Consulting with a Realtor or licensed appraiser before such additions are added is highly recommended. Adding nice landscaping also can increase curb appeal and translate into more money when selling a home.

First impressions of a home are often made from the exterior upkeep of the home so improving what buyers see first can improve the outlook of selling a home. Inexpensive ways to improve the condition and appeal of a home include such items as painting, changing hardware on kitchen cabinets, replacing certain light fixtures and faucets, and an overall good cleaning of the home. For more information contact at todd@toddnelson.com or by calling (304) 733-7158.

Check out the open houses on Sunday!

Readers of the Herald Dispatch on Sunday will notice a newly added item in the open house section of the newspaper. Every fourth Sunday through October some of the area real estate companies will be having open houses in certain communities of the area. Of course open houses will be held in various locations as normal, but starting Sunday January 25th, 2009 some of the area companies will participate in highlighting communities in our area. The first highlighted area is Barboursville. There will be a number of open houses in this particular area allowing for attendees less of a drive and more homes to see than possibly normal during this time. On Sunday February 22nd, there will be a highlight of the areas of South Point, Chesapeake, Proctorville, and Crown City Ohio. Stay tuned to the open house section of the Sunday newspaper for area homes to view and other communities that will be highlighted.

The Weather Outside is Frightful. Now is a Good Time To De-clutter the Inside of Your Home

As the weather gets colder, staying indoors is a reality. Instead of getting bored at home, observe each room and make a list of items no longer needed. Go to your local retailer and purchase some storage containers. You can visit each room of your home and see what is no longer needed or has not been used in years. Go through your clothing and decide what you could sell or donate to a local charity. After boxing up these items, place them in the garage or a storage unit. As spring arrives, you will have more time to enjoy the great outdoors and be ready for the yearly garage sale. Perhaps you may even find that item that you have been looking for for months. Another result of your labor is that you will feel better knowing that a task has been completed and your home may even feel larger with the reduction of items.

With interest rates falling it is almost like homes are on sale!

Interest rates are very appealing right now and continue to garner attention from prospective home buyers and fellow home owners looking to save money. As the interest rates fall, it is almost like homes are on sale when compared to rates earlier in the year.

For example:

If you had thought about buying a home in the summer priced at $200,000 putting 5 percent down when the interest rates for a 30 year fixed rate mortgage were around 6.25% you could expect a monthly payment with principal and interest based on good credit at $1,169.86 a month.

This week one lender had an interest rate with certain parameters at 4.625% on a 30 year fixed rate mortgage. That same house would have a monthly payment with the new interest rate of $976.87 a month.

That is a savings of $192.99 a month, $2,315.88 a year, and $69,476.40 over the 30 years of the loan!

So if you are considering buying a home, right now it is almost like everything is on sale with the lower interest rates. Call a realtor in your area or if I can be of further assistance, email me at todd@toddnelson.com with your questions.

Treasury Actions Could Save Home Buyers and Home Owners Thousands!

If you are a home buyer who has been on the fence about buying a home, then your decision may have just gotten much easier with actions that may occur in the coming weeks. The treasury department may implement a plan that would have it directly engaging in the mortgage industry to dramatically force down interest rates and as a result stimulate the moribund housing market. This is based on sources familiar to the proposal.

Under the plan, the treasury department may buy securities that finance newly issued loans for home purchases, according to the sources familiar with the proposal. Mortgage lenders would have to set exceptionally low interest to a rate, for example, no more than 4.5 percent for traditional, 30-year fixed-rate loans.

According to sources who spoke on condition of anonymity because the plan has not been finalized, these securities would be purchased primarily from Fannie Mae and Freddie Mac, the financing giants that buy most mortgages from U.S. lenders.

For a home buyer wanting to finance $100,000 on a 30 year fixed rate mortgage at 4.5 percent your payment would be $506.69 a month including only principal and interest. This is a savings of $92.86 a month based on rates that were around 6 percent recently. Of course, the savings increase with a larger loan amount. This could allow home buyers to even afford more home if they want.

With the possible changes in the mist. The future of the real estate industry is beginning to look very promising for the coming year. This change could be the boost that our industry has needed. Email me with any real estate related questions at todd@toddnelson.com.