Real Estate Information

Yes, it’s tax season again, and given the state of the economy, saving every penny is very appealing. As an owner of Richmond VA real estate there are many deductions and tax credits you will want to take claim on your 2009 return…provided you qualify of course!!

Here are a number of money-saving ways to reduce the amount of tax you owe--or even increase the amount of your refund!

First, let me explain the difference between a tax deduction and a tax credit.  A tax deduction reduces (adjusts) your taxable income. A tax credit reduces your tax dollar for dollar. You do not have to itemize deductions to claim a tax credit.  

Tax Deductions for Primary Residence

Tax deductions on your primary residence include:

• Interest paid on your mortgage
• Refinancing points paid in 2009
• Real estate taxes
• Interest on major home improvement loans
• Mortgage insurance premiums
• Home improvements required for medical care
• Any sales commission, legal fees, or closing costs associated with the sale of Richmond VA real estate in 2009

Home Energy Efficiency Improvements Tax Credits

Consumers who purchase and install specific products in their Richmond VA real estate, such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in existing homes can receive a tax credit for 30% of the cost, up to $1,500, for improvements "placed in service" starting January 1, 2009, through December 31, 2010. See Federal Tax Credits for Energy Efficiency for a complete summary of energy efficiency tax credits available to consumers.

Residential Renewable Energy Tax Credits

Consumers who install solar energy systems (including solar water heating and solar electric systems), small wind systems, geothermal heat pumps, and residential fuel cell and microturbine systems can receive a 30% tax credit for systems placed in service before December 31, 2016; the previous tax credit cap no longer applies. Details are explained here.

Home Buyer Tax Credit

• First-time buyers who have not owned a home in the last three years are eligible for a credit of 10% of the purchase price, not to exceed $800,000. Ownership of a vacation home or rental property not used as a prime residence does not disqualify a buyer as a first-timer.
• Current home owners, or those who have owned and lived in a principal residence for at least 5 consecutive years of the last 8, may qualify for a credit of up to $6500.

Please consult your tax preparer for any tax law changes.

Although house sales usually slow down in the winter months, this year may be different. Because the Home Buyers Tax Credit deadline has been extended and the qualifying income levels have been expanded, this is an ideal time for both first-time and repeat buyers to purchase a Richmond VA home.

Basic facts Home Buyers Tax Credit:

• The new deadline is April 30, 2010 (June 30^th with a binding, signed contract)

• First-time buyers are eligible for a tax credit of 10% of the purchase price--up to $8000.00

• Repeat buyers (those who have lived in one residence for 5 consecutive years of the last 8) can receive a credit of up to $6500.00.

• Income levels--$125,000 for individuals; $225,000 for couples.

• The credit may be claimed on this year’s tax return (for 2009).

***Remember that a tax credit is a dollar-for-dollar deduction in what a taxpayer owes.   If the credit exceeds the amount owed, a refund will be issued.

Because it generally takes 3 to 4 weeks to process a loan and often an additional month for inspections and paperwork, there are some important and beneficial steps you can take to expedite the purchase of your Richmond VA home.

Beating the deadline:

• Get pre-approved for a loan.  Have your credit report, proof of funds, and employment certification ready to submit.

• Know what you are looking for.  Have some well-thought-out ideas about the desired location, style, and price of your new Virginia Beach home.

• Supply all documents to your lender in a timely manner.

• Communicate often with your lender.   Stay on top of the loan status, closing date, etc.

• Avoid buying a short sale, which is often a lengthy and unpredictable process.

• Take advantage of the expertise and advice of your real estate agent.  He/she can be an indispensable asset and guide in your Richmond VA home buying experience.

According to Realestate.com, buyer’s remorse is one of the top ten mistakes made when purchasing a home. Finding the perfect home and making the decision to buy a home are not easy tasks. First, you spend hours on the computer researching Richmond VA real estate and neighborhoods, perfecting your search criteria on MLS websites, and viewing many virtual tours.  Then, you begin making appointments to go take a look at the ones you think stand a good chance at being the future home of your family. As you walk through the house you envision the happy life you and your family would live and the future décor for this room and that room. You see houses that “require too much work,” “don’t have enough storage,” ones that are “too small” or maybe even one that is “do-able but not perfect.” Finally after weeks or even months of searching, you find “THE house.” Now you send in a promising offer and anxiously wait for feedback. You and seller come to an agreement and the offer is accepted. Once the papers are signed you can relax and enjoy the excitement, right?

Wrong! Shortly after signing the agreement many people experience buyer’s remorse. When a person begins to have feelings of doubt about their decision it is known as buyer’s remorse. The feelings of doubt are also accompanied by stress and anxiety. What if this is not the right decision? Am I getting a fair deal? Is this the right house for me and my family? What if there is something better out there? Questions start invading the committed buyer’s mind causing them to become hesitant and loose confidence in their decision. This worrisome state of mind, known as buyer’s remorse, is becoming more common in purchasing Richmond VA real estate.

Ways To Avoid Buyers Remorse

There are several ways to avoid buyer’s remorse when purchasing Richmond VA real estate.

• The biggest worry people have when experiencing buyer’s remorse is finances. Buyer’s often worry about whether they will be able to comfortably afford their soon to be home. In order to prevent this from being a problem make sure that you have chosen a good price range that takes all of your other expenses into consideration. The appropriate price range may not include the maximum amount you are approved for; however it is very important not to exceed your set amount.
  
  
• The second biggest part of buyer’s remorse is being satisfied with the house. People experiencing buyer’s remorse second guess their choice in a home. They begin to believe that the chosen home may not be the best one that is out there. Before you started looking for a home you probably made a list of things you were looking for. Take this list of things you were looking for in a home and see how many of the things match up with the characteristics of the house that was purchased. If most of the things match up, especially the most important ones, then there shouldn’t be any second guessing. If they aren’t comparable, then try to figure out why the compromises were made and if they still make sense.

Learn more about buying Richmond VA real estate.

Before you make your final buying or selling decision, you should have the home inspected by a professional. An inspection can alert you to potential problems with a property and allow you to make an informed decision. Ask these questions to prospective Richmond VA home inspectors:

1. Will your inspection meet recognized standards? Ask whether the inspection and the inspection report will meet all state requirements and comply with a well-recognized standard of practice and code of ethics, such as the one adopted by the American Society of Home Inspectors or the National Association of Home Inspectors. Customers can view each group’s standards of practice and code of ethics online at www.Ashi.org or www.Nahi.org. ASHI’s Web site also provides a database of state regulations.

2. Do you belong to a professional home inspector association? There are many state and national associations for home inspectors, including the two groups mentioned in No. 1. Unfortunately, some groups confer questionable credentials or certifications in return for nothing more than a fee. Insist on members of reputable, nonprofit trade organizations; request to see a membership ID.

3. How experienced are you? Ask how long inspectors have been in the profession and how many inspections they’ve completed. They should provide customer referrals on request. New inspectors also may be highly qualified, but they should describe their training and let you know whether they plan to work with a more experienced partner.

4. How do you keep your expertise up to date? Inspectors’ commitment to continuing education is a good measure of their professionalism and service. Advanced knowledge is especially important in cases in which a home is older or includes unique elements requiring additional or updated training.

5. Do you focus on residential inspection? Make sure the inspector has training and experience in the unique discipline of home inspection, which is very different from inspecting commercial buildings or a construction site. If your customers are buying a unique property, such as a historic home, they may want to ask whether the inspector has experience with that type of property in particular.

6. Will you offer to do repairs or improvements? Some state laws and trade associations allow the inspector to provide repair work on problems uncovered during the inspection. However, other states and associations forbid it as a conflict of interest. Contact your local ASHI chapter to learn about the rules in your state.

7. How long will the inspection take? On average, an inspector working alone inspects a typical single-family house in two to three hours; anything significantly less may not be thorough. If your customers are purchasing an especially large property, they may want to ask whether additional inspectors will be brought in.

8. What’s the cost? Costs can vary dramatically, depending on your region, the size and age of the house, and the scope of services. The national average for single-family homes is about $320, but customers with large homes can expect to pay more. Customers should be wary of deals that seem too good to be true.

9. What type of inspection report do you provide? Ask to see samples to determine whether you will understand the inspector's reporting style. Also, most inspectors provide their full report within 24 hours of the inspection.

10. Will I be able to attend the inspection? The answer should be yes. A home inspection is a valuable educational opportunity for the buyer. An inspector's refusal to let the buyer attend should raise a red flag.

Are you a home buyer with questions concerning Richmond VA home inspections? Give me a call. I’m glad to answer all your questions. Also, visit our website to learn more about buying a Richmond VA home.

Search all Richmond VA homes for sale.

Information is courtesy of Realtor Magazine with permission by the National Association of Realtors.

Richmond VA Real Estate for Sale:

3019 Windy Marsh Court, Chester VA
MLS# 1000703

Short Sale! IMMACULATE 4 bedroom home with water views!

IMMACULATE! Lifestyle Builders built 4 bedroom home overlooking a beautiful creek!! 35 trees & shrubs planted by seller! Formal rooms provide elegant living spaces! HUGE eat-in kitchen with tile flooring! Family room boasts a large gas fireplace! All windows throughout are tinted! Custom Levelor window shades throughout home convey! 4 bedrooms with wall-to-wall carpeting, lighted ceiling fans and lots of light in each room! Master has 2 walk-in closets, plus a large bath with jetted tub and double vanity! 10x12 floored attic for storage! Shed conveys, as well as John Deere tractor and the Honda self-propelled mower! Whirlpool Neptune washer/dryer, deck furniture, and garage gardening tools convey too! Great insulation throughout! WOW! Sellers are relocating.

Learn more about 3019 Windy Marsh Court by visiting TheGitsGroup.com.

Search all Richmond VA real estatre and homes for sale.

There were 1,798 Richmond VA foreclosure homes for sale with 132 new foreclosures in January 2010. The average selling price of a Richmond VA home was $200,986 in January and the average foreclosure selling price was $137,911, a savings of $63,076, according to RealtyTrac.com.

Richmond VA Foreclosure Activity by Zip Code

Richmond VA Foreclosure Geographical Comparison

January Richmond VA foreclosure activity was lower 0.04% lower than national statistics, 0.05% higher than Virginia statistics, and 0.08% lower than Chesterfield numbers.

Richmond VA Foreclosure Activity by Month

The number of Bank-Owned Richmond VA homes increased from 33 Bank-Owned homes in December to 40 in January. The number of Auctioned homes increased from 66 to 92. The six month foreclosure trend is rising.

Are you or someone you know behind on your mortgage payments and facing a Richmond VA foreclosure? You do have options. A foreclosure is not the only way. A short sale may be the answer to saving you, your family and your home. I have the training, knowledge and experience needed to help save your home from foreclosure. The clock is ticking. Don’t hesitate. Give me a call for a private consultation.

Learn more about selling your Richmond VA home by visiting our website.

2010 will be a good year for Richmond VA home buyers. Lower prices, near record low interest rates and high inventories are all working in the favor of Richmond VA home buyers. Those home buyers making good long term financial decisions will reap the benefits of the currently soft market for years to come.

Here are 6 home buying tips for 2010.

1. Think long-term

We may see soft prices for in the short-term, but real estate like other markets, is cyclical. Over the long haul, the market will bounce back and prices will rise.

2. Think local

Real estate is local. Ignore national headlines and listen to your local real estate expert. The real estate market in Columbus OH is not the same as the real estate market in Richmond VA. Work with an experienced Realtor who has been around for awhile and sells real estate full-time.

3.  Think deal

Look for deals…foreclosures, short sales and motivated sellers. But be realistic, you are not going to be able to buy for 40-50 cents on the dollar. Your real estate expert and advise you as to what to expect in Richmond VA.

4. Re-think risk

Don’t buyer a foreclosure for the price alone. Many foreclosed properties are in deplorable condition. Get a home inspection and know exactly what you are getting into before you buy.

5. Think budget

Take a close look at your finances and determine how much house payment you can realistically afford. Don’t over buy. It is no fun to be house poor.

6. Think tax credit

The home buyer tax credit is still available until April 30, 2010 with credit limits up to $8,000 for first-time home buyers and up to $6,500 for current home owners.

Learn more about Richmond VA home buying at SearchHomesInRichmond.com.

Search all Richmond VA homes for sale.

You've probably seen lots of financial arguments about why you should invest in real estate and own your own Richmond VA home rather than rent. This includes budgeting (no rent increases) and the tax savings you'll most likely have. Now we're going to give you some reasons you probably haven't heard.

1. Freedom to pursue other goals in life once the major goal of home ownership is achieved.

Strange as it sounds, many of our first-time buyers have told us that once they bought the house, other things in their life started to fall into place. It's as if not owning took so much of their mental energy that other goals were not worked on until that big goal was reached. So buy a home and get on with your life!

2. A greater sense of belonging to the community.

Once you own a Richmond VA home, you feel more attached to the city in which you live. You're more interested in what happens in Richmond, to the roads, schools, and shopping areas. Some people even become involved in local politics.

3. A commitment to something, a sense of stability.

Home ownership is an anchor, something that cannot be pulled out from under you. You'll never get a notice that you have to move. You're kids will never have to change schools. It gives you freedom to plan years ahead.

4. You can change things, a feeling of being in control.

It's your home. You can add to it, remodel it, change the landscaping, do whatever projects you want. You have a feeling of being in control of something in your life. At work we don't always have control of what happens, but your home is your castle and you have dominion over it. You can see what you're building take shape before your eyes.

5. More control over the children than in an apartment complex

In a neighborhood, kids usually play in the yards or go to friend's houses a few doors away. Our clients have told us that in an apartment complex they never knew where the kids were. They could be in any of hundreds of apartments, doing who knows what. In a home you get to know the neighbors and watch out for each other's kids.

6. Children do better in school and feel more secure.

This one surprised us, but buyers have reported to us that their kids calmed down in school after they bought a house. We don't know why, but it seems to work that way. We remember a single mom watching her son play in the yard, making steps in the slope and building things. She didn't have to tell him to leave everything alone, like she did at the apartment complex. I guess kids feel the same need for control we adults do.

7. Time and money saved by not going to the Laundromat.

A small point, but if you have kids, you know the value of this one. You gain a whole evening a week when you buy a house! The wash gets done in between other things, or while you're at work. What would you do with the extra evening you'll have? How about going out for dessert with your spouse with all those quarters?

We've been in a home of our own for so long; we take these benefits for granted. We forgot what it's like to be renters! If you have anything you can add to the list, please let us know via email. We would love to hear from you! 

Start your Richmond VA home search.

As a long-term investment, Richmond VA home ownership is still one of the best investments for individual households.

Everywhere you look, headlines say the housing market is in a free-fall, foreclosures are rising at an alarming rate, and mortgage money is so tight that buyers can’t get a home loan at any price.

In today’s economy, is buying a home and investing in a good idea? As a long-term investment, homeownership is still one of the best investments you can make. And the operative word here is “long-term.”

Why is Richmond VA home ownership a good investment?

Why is Richmond VA home ownership a good investment, you ask. The housing market, like all markets, is cyclical and will inevitably have ups and downs. But, homeownership has a track record that is virtually unmatched by any other investment of stocks, bonds or mutual funds.

Despite the current unrest in the mortgage industry, if you have good credit, a job and steady income, you will find there is still plenty of mortgage money to be had at decent interest rates. For well-qualified buyers, rates close to historical lows and the home buyer tax credit.

Homeownership’s Real Value

Why is Richmond VA home ownership is a solid stepping stone to financial security and the single largest creator of wealth for many Americans. Despite cyclical ups and downs, real estate has consistently appreciated over the long-term. The National Association of Home Builders reports home appreciation has, historically, increased 5-6 percent annually.

This may not seem like much, but let’s look at some figures that will put it into perspective. If you were to put down the 3.5 percent required by FHA on a $200,000 house, you would put down $7,000. At a 5 percent annual appreciation rate, that $200,000 home would increase in value $10,000 during the first year. Earning $10,000 on an investment of $7,000 is an extraordinary annual return.

In contrast, putting that $7,000 down payment into the stock market and getting a 5 percent gain would only yield a $350 profit.

Home Ownership Compared to Stocks

Looking at it another way, over a longer period of time, if someone put $10,000 into the stock market in 1996, the average annual S&P return would make that investment worth $21,500 today—an increase of $11,500. The median home price in 1996 was $140,000.

Today, that same home would have gained nearly $100,000 in value.

Don’t miss out on the benefits of Richmond VA home ownership. Visit SearchHomesInRichmond.com or give us a call for more personal attention.

Search all Richmond VA homes for sale.

If you are buying Richmond real estate, you will want to know what your credit score is. Lenders look at your credit history, debt-to-income ratio and your credit score when qualifying you for a home loan. Credit scores range between 200 and 800, with scores above 620 considered desirable for obtaining a mortgage. The following factors affect your score:

1. Your payment history. Did you pay your credit card obligations on time? If they were late, then how late? Bankruptcy filing, liens, and collection activity also impact your history.

2. How much you owe.  If you owe a great deal of money on numerous accounts, it can indicate that you are overextended. However, it’s a good thing if you have a good proportion of balances to total credit limits.

3. The length of your credit history. In general, the longer you have had accounts opened, the better. The average consumer's oldest obligation is 14 years old, indicating that he or she has been managing credit for some time, according to Fair Isaac Corp., and only one in 20 consumers have credit histories shorter than 2 years.

4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay them promptly.

5. The types of credit you use. Generally, it’s desirable to have more than one type of credit — installment loans, credit cards, and a mortgage, for example.

For more on evaluating and understanding your credit score, visit www.myfico.com. 

Are you thinking of buying Richmond real estate? Learn about the home buying process at TheGitsGroup.com or give me a call for more personal service.

Search all Richmond real estate and homes for sale.

Reprinted from Realtor Magazine with permission of the National Association of Realtors.