For six years running, Helen Adams agent, Lynda Dobbins, has received Charlotte Magazine’s “Five Star Customer Satisfaction Award” for providing exceptional real estate service.

Over 17,000 Charlotte area homebuyers were surveyed to judge their real estate agent’s market expertise, technical skills and knowledge.  Homebuyers were asked to evaluate their agent based on nine criteria:  customer service, communication, finding the right home, integrity, negotiation skills,  marketing of the home, market knowledge, closing preparation and overall satisfaction.

Before selecting the winners of this year’s Five Star awards, the candidates were also reviewed by a blue-ribbon panel of industry experts including professional and trade association officers, real estate company owners and executives in housing-related businesses.

The resulting Five Star winners, like Lynda Dobbins, are an elite group, representing less than 4 percent of licensed agents in the Charlotte area.  Only 532 top-scoring real estate agents made this year’s list.

Join us in congratulating Lynda for this outstanding achievement.

Summary of new and updated provisions in the first time home buyers credit.  The new home buyer tax credit has been extended until April 30th 2010. There are new provisions in the extension and they are NOT retroactive. Here is a summary of the new and updated provisions and their impact on you if you have or are planning to buy a house:

Qualification Period : First-time home buyers who bought after January 1, 2009 and before April 1 2010 (with closing to take place before July 1, 2010), would get the $8,000 home buyer tax credit. For the purposes of claiming the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner. This is an update from the original November 30th 2009 deadline. If you and your spouse claim the credit on a joint return (both of you must meet the income and past ownership criteria to qualify). Each spouse is treated as having been allowed half of the credit for purposes of repaying the credit. So the total amount claimable is still only $8000 (up to April 30th 2010).

Income qualification limits: The home buyers’ credit would be available to individuals with a modified adjusted gross income (MAGI) of up to $125,000, or $250,000 for couples, up from $75,000 for individuals and $150,000 for couples under the original rules. The higher income limits are only for homes purchased after Nov. 6, 2009. That is, the existing MAGI phase-outs of $75,000 to $95,000 or $150,000 to $170,000 for joint filers still apply to purchases on or before Nov. 6, 2009. Those with incomes higher than the above limits do not qualify for any part of the tax credit.
*NEW* Current Homeowners looking for a replacement primary residence could also qualify for a $6,500 (up to $3,250 for a married individual filing separately) under the new “long-time resident” provision. They must have lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased. This new provision also only applies to homes purchased after Nov. 6th 2009.
Claiming the new home buyer credit: For qualifying purchases, taxpayers have the option of claiming the credit on either their 2009 or 2010 return. A new version of Form 5405, First-Time Home buyer Credit, is available on the IRS website. Taxpayers claiming the credit on their 2009 returns, will not be able to file electronically but instead will need to file a paper return by using the new version of Form 5405. A taxpayer who purchased a home on or before Nov. 6 and chooses to claim the credit on an original or amended 2008 return may continue to use the current version of Form 5405.
- The new $8000 credit can be used towards the down payment of a house bought in the credit qualifying period. You need to work with your lender to take advantage of this provision.

- Tax Credit Exclusions:
1. You must be 18 years or older to qualify.
2. Your homes cannot cost more than $800,000.
3. You have to use the home as your main residence for 3 years. If you stop you will have to repay the credit.
4. You cannot claim the credit if acquired your home by gift or inheritance OR if you acquired your home from a related person
If two or more unmarried individuals buy a main home, they can allocate the credit among the individual owners using any reasonable method. The total amount allocated cannot exceed the smaller of $8,000 or 10% of the purchase price. Note: A reasonable method is any method that does not allocate all or a part of the credit to a co-owner who is not eligible to claim that part of the credit (I would go with 50/50 as a reasonable method if one person is not eligible for the credit)

- The purchase date is how you decide which credit you are eligible for. Only homes purchased from Jan 1 2009 to April 1st 2010 are eligible for the fully refundable $8000 credit. If you constructed your main home, you are treated as having purchased it on the date you first occupied it.

Members of the Armed Forces and certain federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and still qualify for the credit. An eligible taxpayer must buy or enter into a binding contract to buy a home by April 30, 2011, and settle on the purchase by June 30, 2011.

WASHINGTON – The U.S. Department of Housing and Urban Development new mortgage reforms are in place that will help consumers to shop for the lowest cost mortgage and avoid costly and potentially harmful loan offers. HUD will require, for the first time ever, that lenders and mortgage brokers provide consumers with a standard Good Faith Estimate (GFE) that clearly discloses key loan terms and closing costs. HUD estimates its new regulation will save consumers nearly $700 at the closing table.

A good faith estimate must be provided by a mortgage lender or broker in the United States to a customer, as required by the Real Estate Settlement Procedures Act (RESPA). The estimate must include an itemized list of fees and costs associated with your loan and must be provided within three business days of applying for a loan.  These mortgage fees, also called settlement costs or closing costs, cover every expense associated with a home loan, including inspections, title insurance, taxes and other charges.  A good faith estimate is a standard form which is intended to be used to compare different offers (or quotes) from different lenders or brokers.  The new form is designed to be easier to read for the consumer.  To fully understand the new rules you should contact your mortgage loan officer or your real estate agent.

On December 24 the Obama administration made a decision to cover an unlimited amount of losses at the mortgage finance giants, Fannie Mae and Freddie Mac through 2012. The WSJ quotes the Treasury Department as saying that, “unlimited access to bailout funds through 2012 was necessary for preserving the continuing strength and stability of the mortgage market.” In a separate article linked above the WSJ reports that the 10 year treasury is heading higher and that 30 year mortgage rates are expected to follow suit this spring as the government mortgage-purchase program comes to a close.

A December 28 WSJ article reports that, “Today the government, directly or indirectly, underwrites nine of every 10 new residential mortgages, nearly twice the percentage before the crisis.”  Regarding  Charlotte homes, if 9 of 10 loans are conforming to the limit of $416,000 then home markets which sell in this price range and below should continue to solidify, however the secondary market above this loan limit remains less certain.

We are pleased to announce that Marian Morton has joined the Randolph Road office of  Helen Adams Realty. 

Marian is a 27 year veteran of the Prudential real estate franchise. 

In 2007, Marian received the Agent of the Year award for Prudential Carolinas Realty in Charlotte.  Marian was a repeated Top Producer and President’s Circle award winner for Prudential’s SouthPark office.  Marian was also a recipient of Prudential’s national, Ten Year Legend Award,  and she was honored five times by the Charlotte Sales and Marketing Executives International.

Please join us in welcoming Marian to Helen Adams Realty.

On Friday, November 6, President Obama signed  a bill to extend the $8000 tax credit for first-time home buyers until June 2010.   First-time home buyers will receive the $8000 tax credit if they sign a contract by April 30, 2010 and close on the home by June 30, 2010.  The new bill also will provide a $6500 credit  for homeowners who purchase a new primary residence, and have lived in their current home for at least five of the previous 8 years.

The bill has a few provisions including:

* Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.

* Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

The bill also introduced 20 weeks of unemployment benefits in states with jobless rates above 8.5%.  States with unemployment rates below 8.5% would provide 14 weeks of unemployment benefits.

The bill also provides refunds on profit taxes for businesses that had operating losses in 2008 and 2009.

Click below for the First Time Home Buyer Tax Credit Form:

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Join us in welcoming the agents and staff who recently joined Helen Adams Realty.

Details released today by Senator Dodd that the democrats have reached an agreement to extend the soon to expire $8,000 tax credit for first time home buyers.  Republicans cautioned that negotiation continue.  Neither side released any details but the extension will be phased throughout 2010.  The full credit will extend to March and then slowly decrease as 2010 progresses.  To read more about this story got CNBC’s website.