Christina Buffa\’s Blog

If you are buying your first home and are worried about closing costs and downpayment, then an MHDC (Missouri Housing and Development Corporation) CAL (Cash Assistance Loan) loan might be something to look in to.    

With this loan,  first time home buyers will be eligible to receive assistance from MHDC  of up to 3% of the purchase price of a home to help with them  closing costs and down payment. The assistance will be in the form of a second loan, and is diminishing and totally forgiven after five years.

http://www.mhdc.com/homes/cal/index.htm

As of today,  Missouri is one of 13 states  that does not impose a real estate transfer tax when you sell your property,however, the state constitution allows the government to impose it at anytime. In 2010 MAR (Missouri Association of Realtors http://www.missourirealtor.org/content/AboutUs.htm ) is working to amend the constitution to prohibit the real estate tax forever.

At a time when Missouri residents have enough to worry about with regard to equity in their home “ the government would like to add an additional œtransfer tax to the sale of your property. Yes, that is correct¦sell your home and pay more taxes. So not only are some homeowners coming to closing with a check because they have little or no equity, now they can pay some taxes on top of it all.   Imagine this – you have lost your job,  are ill, are forced to sell your home, and in barely doing so, now you can pay taxes when you sell.  

Petition signatures are now being gathered to place on the November 2010 ballot.    The  amendments language  reads like this: “Shall the Missouri Constitution be amended to prevent the state, counties, and other political subdivisions from imposing any new tax, including a sales tax, on the sale or transfer of homes or any other real estate?”

Please take the time to read more about this and what you can do to help.

http://yestosavehomes.com/learn-more.html

Resources:

http://www.showmedaily.org/2009/10/tough-call-on-real-estate.html

http://www.kcrar.com/join-mar-effort-to-stop-double-taxation

As of today,  Missouri is one of 13 states  that does not impose a real estate transfer tax when you sell your property,however, the state constitution allows the government to impose it at anytime. In 2010 MAR (Missouri Association of Realtors http://www.missourirealtor.org/content/AboutUs.htm ) is working to amend the constitution to prohibit the real estate tax forever.

At a time when Missouri residents have enough to worry about with regard to equity in their home “ the government would like to add an additional œtransfer tax to the sale of your property. Yes, that is correct¦sell your home and pay more taxes. So not only are some homeowners coming to closing with a check because they have little or no equity, now they can pay some taxes on top of it all.   Imagine this – you have lost your job,  are ill, are forced to sell your home, and in barely doing so, now you can pay taxes when you sell.  

Petition signatures are now being gathered to place on the November 2010 ballot.    The  amendments language  reads like this: “Shall the Missouri Constitution be amended to prevent the state, counties, and other political subdivisions from imposing any new tax, including a sales tax, on the sale or transfer of homes or any other real estate?”

Please take the time to read more about this and what you can do to help.

http://yestosavehomes.com/learn-more.html

Resources:

http://www.showmedaily.org/2009/10/tough-call-on-real-estate.html

http://www.kcrar.com/join-mar-effort-to-stop-double-taxation

Are you a gambling man or woman?   Don’t hedge your bets – get on the FTHB train before it is too late because this is it. No more Tax Credit Extensions.   According to Real Estate Economy watch, this will be the final tax credit extension – after this, no more.   The term ˜carpe diem’, to me, has a whole new meaning.

According to a recently published article, “During the annual conference of the National Association of Realtors’ annual meeting in San Diego, lobbyists for NAR recounted the terms of the agreement.   In the end, lawmakers “made us promise, practically in blood, that we would not come back,” said NAR’s Linda Goold. She said NAR agreed that, “barring market surprises,” Realtors would not seek another extension of the tax credit, according to Inman News Service.”

This doesn’t surprise me, but I just wonder how many buyers will be thinking, “This is just Chicken Little screaming that the sky is falling, and they will extend it again”, and not really understanding what great opportunity they will be missing. Or even worse, they wait until the last minute to find out there is little or no good inventory left in their price range.

As we approached the 75-60 day deadline before November 30^th, there were slim pickings in certain price ranges, and I had buyers that literally only had a handful of decent homes to choose from (if they were lucky).   Seriously you say? Yes, I am serious.   They ended paying above or full price for the home, one even got in to a bidding war. No joke! Most (smart) first time buyers got on board earlier this summer and those that waited had to take leftovers. I don’t know about you, but when I buy a home I certainly want good choices and leftover homes seem as appealing as last night’s mac-n-cheese.

If you have considered buying, now may be the time to take a serious look at finances and decide if homeownership is right for you.   Talk to a qualified, professional who works in the business full-time and can help you make the right decision for now and for the future

Source: http://www.realestateeconomywatch.com/2009/11/the-last-days-of-the-homebuyer-tax-credit/

Think  For Sale By owner will net you more money? Think again¦I will show you one way For Sale By Owners (FSBO), get less money for their home

I respect that with everything that is going on in today™s market, it might seem a little better to put your home up for sale, save the 6% and go it alone.  Well, I don™t know that I agree¦and maybe after reading this you will see the truth about local FSBO companies that claim to help you sell your home for less money, and look to a true professional to help you sell your home.

Let us first take note that Missouri housing is no longer part of the declining market. In fact since January 2009 home sales have actually increased 124%! We have eight months or so in inventory, which  indicates it is still a buyers market, but none the less we are looking at an upward trend for home sales (personally this is very exciting if you are selling your home).      So where does this leave FSBOs?   With 14,000 homes in inventory the KC Metro Area, how does one typically compete with so many homes on the market?   Selling lower, hoping that whomever is looking will find your home and buy it, right?   Well, let™s think about that¦  If you were a first time home buyer (which accounts for about 50% of home sales) wouldn™t you use a REALTOR to help you navigate the process?   We all have to admit, the first time you buy a home can be overwhelming and you probably want your hand held so you don™t make a large financial mistake.

Ok, so what about move-up buyers?   Typically a move-up buyer has just sold their home and is working with that same REALTOR to find their new home. After all they need to close in 30-45 and with so much inventory they need someone to do the footwork and research for them.

So who is left? Investors and dreamers. Investors will low ball you, hoping you don™t know the true value of the home. Dreamers?  Well, they are just that, they want to buy but couldn™t get qualified. (By the way a certain lender is only looking at buyers with a credit score of 660 or higher to buy a home)So I digress a little, let us get back on track¦So, you still think that if you sell for a couple thousand lower than the neighbors you will surely net a quick sale¦Well let™s look at that¦.Recent statistics from the NAR 2008 Profile of Home Buyers and Sellers Reports show that the median selling price as a percentage of the asking price was 97% for FSBO, and for agent-assisted sales was 96%. Wow! At first look that sounds fantastic, FSBO got more for their home than the agent assisted sales. Not so fast my friends, look closer¦  The median selling price on FSBO Home was $150,100 and the median sales price of agent assisted was $211,000. Take this one step further and drill it down by square foot – the average FSBO home size is 1500 sq. feet, whereas the agent assisted average is 1850 sq. feet.   When we compare price per square foot “ the FSBO home only sold for $99/sq. foot and the agent assisted home was $114/sq. foot, a difference of $15/sq. footComparatively, if the FSBO with the 1515 sq foot home sold with an agent he would have sold for $175,740, a price difference of $25,640!There are many claims that FSBO sell faster on average by 5 weeks¦why would that be? Maybe because they are being sold at deeply discounted prices to investors? FSBO have in essence priced their homes too low! Don™t make the same mistake and waste time and energy. Selling a home is much more than putting a sign in the yard, and praying someone buys it.   If anything talk to a qualified REALTOR who knows your market before you list your home.For more information about my marketing plan and how I can help you sell your home. Please visit my website at htt://www.mykcagent.com, via email at christina.buffa@kw.com or at 816-914-2487

Welcome to Christina Buffa’s Blog! This blog will provide you with valuable information, tips, and general insight into the real estate market in Kansas City.