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Scott Smith Real Estate Team

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Extension to the 1st time homebuyer credit

There have been a lot of confusion out there as to whether Congress has approved an extension to the 1st time homebuyer credit –

Please know that the Senate passed an amendment to HR 4213 which is a bill that primarily extends unemployment insurance and closes certain tax loop holes.
The bill itself is not yet approved.

 To pass and become law, this bill would have to pass in the Senate, be reconciled with the House bill and then signed by the President. The passage of this amendment
means that IF the full bill passed and this amendment survives the reconciling process, 1st time home buyers would have until September 30th to close on transactions where
the purchase agreement was signed by April 30th in order to receive credit for the tax credit. It would extend the closing time-frame only of qualifying transactions.

 There is no change to the dates associated with the tax credit at this time and loans must close by June 30th in order to qualify for the tax credit.

 We will keep tracking this issue and let you know of any progress or changes

Highland Park Pre-MLS Opportunity

1461 Edgcumbe Road - St. Paul
$449,900

Outstanding opportunity to own this beautiful brick rambler on one ofSt. Paul’s premier streets! The main level features an eat-in kitchen, formal dining, large living room, 3-season porch and three spacious bedrooms. Partially finished lower level with family room, 3/4 bath and tons of unfinished potential. Solid construction, great opportunity for updating or remodel!

Call the Smith Team for more detailed information or to schedule a private showing!

651-777-3434

Not your average multi-level home!!

6767 Upper 28th Street N.
Offered at $199,900

Not your average multi-level home!! Move in condition, gorgeous wooded lot, and walkout to cedar deck. Open floor plan wood-burning fireplace, new carpeting, and huge walk-in closets. Quiet neighborhood with quick access for shopping and commute.

Not your average multi-level home!!

6767 Upper 28th Street N.
Offered at $199,900

Not your average multi-level home!! Move in condition, gorgeous wooded lot, and walkout to cedar deck. Open floor plan wood-burning fireplace, new carpeting, and huge walk-in closets. Quiet neighborhood with quick access for shopping and commute.

St. Paul offers 'heroes' a tax credit for buying first homesPost Title

City offers loans to qualifying first-time buyers

 

 

St. Paul is piling on the incentives to get first-time homebuyers to purchase property in the city.

Later this month, St. Paul and Minneapolis officials will unveil a program that provides $8 million worth of federal tax credits to qualified first-time homebuyers who purchase homes in either city.

On Wednesday, St. Paul's Housing and Redevelopment Authority voted to sweeten the deal for some of those tax credit recipients who buy in St. Paul and also happen to be "heroes" — veterans, members of the U.S. armed forces, firefighters, emergency medical technicians, paramedics, health care workers and certain public sector employees.

Those borrowers could receive loans of up to $15,000 for down-payment assistance, closing costs or reducing the principal amount owed on a mortgage.

"It's (for) that everyday hero — it's that teacher, it's that firefighter," said Council Member Lee Helgen during Wednesday's meeting of the HRA. "Somebody who's going to care about the community."

The federal program, called Take Credit, is meant to help up to 130 first-time homebuyers in St. Paul who meet certain limits on income and the price of the home being purchased. The city will spend an additional $500,000 to provide loans to about 33 people in the heroes program, which the HRA unanimously approved Wednesday.

Both efforts come at a time when the federal government is offering tax credits of up to $8,000 for first-time homebuyers who purchase a home before Dec. 1. Those credits are an attempt to jump-start the ailing housing market by giving incentives to potential buyers who don't have to worry about simultaneously selling a home.

While homebuyers would use the federal government's tax credit within the first year or two, the city's program provides credits against federal taxes for the life of the mortgage. The program lets first-time homebuyers take 20 percent of their mortgage-interest payment in a year as a credit against their total tax, rather than as a deduction against taxable income.

That way, the credit gives homeowners a "dollar-for-dollar" reduction in taxes owed for the year, city officials say.

First-time homebuyers in the city program would pay a one-time participation fee of $575, which pays for administrative and lender costs as well as processing fees. But city officials say that a taxpayer with a $175,000 mortgage, for example, would more than recover the $575 by way of the tax credit within the first year.

Loans provided in the heroes program would carry a 0 percent interest rate, and periodic payments on the loan would not be required. Instead, repayment would come when the house is sold or if the homeowner no longer uses the home as his or her primary residence.

Loans would be forgiven completely for borrowers who reside in homes as their primary residence for longer than 10 years.

"Neither one of the programs will be available until later this month," said Natalie Fedie, a city spokeswoman. The city still is working to determine which mortgage lenders will help implement the programs.

Spring Family Fun Events!

Children’s Festival, Stillwater

 Share a fun-filled time with your family as you enjoy a large variety of games, food, and activities just for children.  This traditional ECFE event gets bigger and better every year, so mark your calendars now.


No registration required

Tickets available at the door
Saturday, March 28  •  9:00 am-1:00 pm  •  Rutherford Elementary in Stillwater

 

Bachman's Spring Animal Farm, Maplewood

Great place to take the kids! Take 36 to the White Bear Ave. exit and go right towards Maplewood mall and it's on the right side of the road. 

Don't Miss Bachman's Spring Open House
Saturday and Sunday, April 4-5

All Floral, Gift & Garden Stores
Don’t miss our largest family event of the season. Enjoy our baby animal petting zoo (10 a.m. to 3 p.m.), kid’s potting bench, free refreshments, colorful demonstrations for spring on every hour and your chance to win door prizes including a $1,000 landscaping makeover and the first pitch at the Twins game on Sunday, May 3 - we're giving away 100 Twins tickets too!

 

Family Fun Night, Woodbury

 Presented by: Children and Parent Connection in Washington County (CAPC)

FREE evening of fun and entertainment for the whole family at Club Just Jump.

April 21st from 6-8 at Club Just Jump in Woodbury

 

Saturday, June 6  •  10:00 am-Noon  •  Stillwater High School Parking Lot

 

Big Truck Extravaganza

Bring your family and enjoy a walk around the parking lot to see all kinds of big and little trucks.  Everything from a tractor to a firetruck will be ready for some “hands-on” fun.


No pre-registration required

$5/car at the event

 

Press Release!

The snow has finally melted and Spring real estate market is in full swing. There are probably two people you already know that could use our help and guidance.

First, the 2009 Economic Stimulus legislation included a tax credit of up to $8000 for first-time home buyers (or if you haven't owned a home for the last three years.) If saving for a down payment is an obstacle, buyers can claim the credit on their 2008 tax returns and use the funds this year before they purchase. Median sale prices have rolled back to values from 4-5 years ago coupled with mortgage rates near 5%, housing affordability hasnt been this good since the 1960s! There should be no reason to keep renting when you could own a home. Find out more details at www.FederalHousingTaxCredit.com.

Like many Americans, the second person you might know might be facing a personal

or financial hardship due to the economic downturn. Unfortunately, we have encountered individuals and families from all walks of life that are in jeopardy of losing their home to foreclosure. The tragedy is most people losing their home to foreclosure are unaware of the options available. Now more than ever, banks are open to loan modification programs or a short sale before foreclosure. Sharing this letter with someone you know could save them from a lifetime of trying to repair their broken credit. Find out more details at www.FinancialStability.gov.

Whether a buyers market, a sellers market, or a shifting market, buyers are getting qualified for mortgages and sellers are selling. Now more than ever, buyers and sellers need experienced professionals to help navigate the turbulent real estate market. As always, your referrals and recommendations to family, friends and co-workers are the heart of our real estate business.

Best wishes for a great Spring!

12 Questions to Ask When Choosing Your Realtor

Make sure you choose a Realtor who will provide top-notch service and meet your unique needs.

1. How long have you been in residential real estate sales? Is it your full-time job? While experience is no guarantee of skill, real estate — like many other professions — is mostly learned on the job.

2. What designations do you hold? Designations such as GRI and CRS, which require that agents take additional, specialized real estate training, are held only by about one-quarter of real estate practitioners.

3. How many homes did you and your real estate brokerage sell last year? By asking this question, you’ll get a good idea of how much experience the practitioner has.

4. What is your average market time? How does that compare to the overall market? The Realtor you interview should have these facts on hand, and be able to present market statistics from the local MLS to provide a comparison.

5. How close to the initial asking prices of the homes you sold were the final sale prices? This is one indication of how skilled the Realtor is at pricing homes and marketing to suitable buyers. Of course, other factors also may be at play, including an exceptionally hot or cool real estate market.

6. What types of specific marketing systems and approaches will you use to sell my home? You don’t want someone who’s going to put a For Sale sign in the yard and hope for the best. Look for someone who has aggressive and innovative approaches, and knows how to market your property competitively on the Internet. Buyers today want information fast, so it’s important that your Realtor is responsive.

7. Will you represent me exclusively, or will you represent both the buyer and the seller in the transaction? While it’s usually legal to represent both parties in a transaction, it’s important to understand where the practitioner’s obligations lie. Your Realtor should explain his or her agency relationship to you and describe the rights of each party.

8. Can you recommend service providers who can help me obtain a mortgage, make home repairs, and help with other things I need done? Because Realtor are immersed in the industry, they’re wonderful resources as you seek lenders, home improvement companies, and other home service providers. Practitioners should generally recommend more than one provider and let you know if they have any special relationship with or receive compensation from any of the providers.

9. What type of support and supervision does your brokerage office provide to you? Having resources such as in-house support staff, access to a real estate attorney, and assistance with technology can help an agent sell your home.

10. What’s your business philosophy? While there’s no right answer to this question, the response will help you assess what’s important to the agent and determine how closely the agent’s goals and business emphasis mesh with your own.

11. How will you keep me informed about the progress of my transaction? How frequently? Again, this is not a question with a correct answer, but how you judge the response will reflect your own desires. Do you want updates twice a week or do you prefer not to be bothered unless there’s a hot prospect? Do you prefer phone, e-mail, or a personal visit?

12. Could you please give me the names and phone numbers of your three most recent clients? Ask recent clients if they would work with this Realtor again. Find out whether they were pleased with the communication style, follow-up, and work ethic of the Realtor.

10 Great Ways to Prepare for Homeownership

1. Decide what you can afford. As a rule of thumb, you can afford a home equal in value to between two and three times your gross income.

2. Develop your home wish list. Prioritize the features on your list from most important to least important.

3. Select where you want to live. Compile a list of neighborhoods you’d like to live in. Some important factors to take into consideration are schools, recreational facilities, churches, area expansion plans, and safety.

4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment?  Don't forget to factor in closing costs. Closing costs — including taxes, attorney’s fee, and transfer fees — average between 2 and 7 percent of the home price.

5. Get your credit in order. Know your credit score! Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.


6. Determine your mortgage qualifications. Find out what you qualify for and what you are comfortable with for a monthly payment. Also, explore different loan options — such as 30-year or 15-year fixed mortgages or ARMs — and decide what’s best for you. Talk with a qualified, reputable lender.

7. Get preapproved.
 You might need to gather forms such asW-2's, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.

8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers.

9. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.

10. Contact a REALTOR®. Find an experienced, highly recommended REALTOR® who can help guide you through the process.

$7500 tax credit for First Time Buyers

Just in case you know if anyone who doesn’t own a home and could use an extra $7500

One of the most exciting new provisions of the Housing and Economic Recovery Act of 2008 is the First-Time Homebuyer Tax Credit. The credit is designed to encourage first-time homebuyers to go ahead and make the leap to purchase their first homes. Combine this tax credit with the fact that home prices are at historical lows, and indeed it is an ideal time for many first-time homebuyers to purchase homes.

Here are some things to keep in mind:

  • The credit is available for homes purchased between April 9, 2008 and July 1, 2009
  • The credit amounts to 10% of the purchase price of the home not to exceed $7,500
  • A first-time homebuyer is defined as someone who has not owned a home in the last three years
  • Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit
  • The tax credit works like an interest free loan and must be repaid over a 15 year period

How does a tax credit work?
A tax credit is a special provision that reduces income tax liability on a dollar for dollar basis. When filing a tax return, you must include income items, deduction items and the number of exemptions, among other things, to figure your total tax liability. If your total tax liability ends up being $7,500, and you qualify for the full $7,500 tax credit, this credit would be applied and would wipe out all of the tax due. If your employer had already deducted the $7,500 from your pay checks throughout the year, you would receive a tax refund of $7,500.

Does the credit have to be repaid?
Yes, the credit does have to be repaid, so it is really more like an interest free loan. Homebuyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a homebuyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.

For more information about the first-time homebuyer tax credit or other changes resulting from the Housing and Economic Recovery Act of 2008, go to  

http://www.hud.gov/news/recoveryactfaq.cfm or just contact me at mailto://scottsmith@kw.com

Displaying blog entries 1-10 of 39

Contact Information

The Smith Team
Keller Williams Premier Realty
3555 Willow Lake Blvd. #100
Vadnais Heights MN 55110
651-777-3434
Fax: 651-204-9089