According to an article found on CNNMoney.com, George Graham, former director of Fortress, a hedge fund, partnered up with one of the auction houses that works closely with Sotheby's International Realty and several other auction houses to sell Luxury Real Estate. Concierge Auctions was formed.
Concierge Auctions' goal appears to be to take advantage of the failing real estate market and auction off luxury real estate. They tell luxury homeowners that their home won't sell via a traditional real estate market for years so it is better to auction off their home and make something off of it instead of ending up in foreclosure. They are also hoping to get in with banks all across the country. Since many luxury homeowners are unable to handle the mortgage, the property is entering foreclosure. The lenders are then stuck with homes that they are often unable to sell for market value. By getting in with the lenders, Concierge hopes to auction off these homes and make a cut of the final sales price. (To read the complete article, "Luxury Real Estate Vultures" (9-18-09), by Katie Benner, click here.)
For information on luxury real estate in the Tulsa, OK area or to sell or buy a luxury home, contact Peter McGraw of the Tulsa Luxury Property Group of McGraw Realtors at 918-592-6000 or www.tulsaluxurypropertygroup.com.
Thursday, December 31, 2009
Wednesday, December 16, 2009
Land Surveys
When a land surveyor is hired to perform a survey, he will do several things. One of the first things he will do is research, through several sources including the County Clerk’s office, in order to gather information about anything that affects the property and its boundaries. The surveyor will then perform a field survey of the property. He will find any physical evidence that will affect the boundaries as well as note any improvements made. After all this has been done, the surveyor will determine where the property lines are based on his research and data. He will then put the data into the computer to verify and draw a plat.
There are various types of surveys that can be performed.
A boundary survey is simply for the purpose of locating the boundaries and corners of a piece of land.
A topographical survey is used to locate elevations, land contours, streams, fences, etc.
A subdivision survey divides the land into smaller pieces with their boundaries.
A mortgage location survey must meed the requirements for title insurance.
For more information about surveys required to purchase a home in Oklahoma contact JJ Pierce of Closings of Tulsa at 918-493-2241 or www.closingsoftulsa.com.
There are various types of surveys that can be performed.
A boundary survey is simply for the purpose of locating the boundaries and corners of a piece of land.
A topographical survey is used to locate elevations, land contours, streams, fences, etc.
A subdivision survey divides the land into smaller pieces with their boundaries.
A mortgage location survey must meed the requirements for title insurance.
For more information about surveys required to purchase a home in Oklahoma contact JJ Pierce of Closings of Tulsa at 918-493-2241 or www.closingsoftulsa.com.
Monday, December 14, 2009
Tax Credits for First Time and Move Up Buyers
Good news for potential home buyers from Uncle Sam! In an attempt to further stimulate the housing market Congress has extended the First Time Home Buyer Tax Credit and created what some are calling the Move Up Buyer Tax Credit. This is a great incentive if you are on the hunt for a new house. Some information about the tax credits:
Move-Up Buyer Tax Credit
Qualified Move-up or repeat home buyers purchasing any kind of home are eligible to claim the $6,500 tax credit.
A move-up buyer is a home owner who has owned and resided in a home for at least 5 consecutive years of the eight years prior to the purchase date. If married both spouses homeownership are tested.
The tax credit is equal to 10% of the home’s purchase price up to a MAX of $6,500.
The income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return.
The previous tax credits applied only to first-time home buyers and were for different amounts of money.
The tax credit is claimed on the 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 7 of the 1040 income tax form for 2009 returns.
Any home that will be used as a principal residence will qualify for the credit, provided the home is purchased for a price less than or equal to $800,000. This includes single family detached homes, attached homes like townhouses and condominiums, manufactured homes, and houseboats.
The tax credit is refundable. This means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. This usually means the government will send the taxpayer a check for a portion of even the entire amount of the refundable tax credit.
A 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.
The tax credit can be combined with an MRB (bond money) home buyer program.
Anyone who is not a nonresidential alien and who has owned and resided in a principal residence in the US for at least five consecutive years of the eight years prior to the purchase date can claim the tax credit if they meet the income limits.
Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the down payment.
The law allows taxpayers to elect to treat qualified home purchases in 2009 (or 2010) as if the purchase occurred on Dec. 31st, 2008 (or if in 2010, Dec. 31st, 2009). This means that the previous year’s income limit applies and the election accelerates when the credit can be claimed.
First Time Home Buyer $8000 Tax Credit Questions and IRS Answers
1. Can you take the credit if you buy a house in 2009, and file an extension to October 15th.
Yes IR-2009-27 http://www.irs.gov/newsroom/article/0,,id=205416,00.html March 18, 2009 states: Under the American Recovery and Reinvestment Act of 2009, qualifying taxpayers who purchase a home before December 1 receive up to $8,000, or $4,000 for married individuals filing separately. People can claim the credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year. The filing options to consider are: file an extension; file now, amend later; amend the 2008 tax; claim the credit in 2009 rather than 2008.
2. Can you take the credit on a mobile home with no land?
The Form 5405 does state that a main home is the one you live in most of the time. It can be a house, houseboat, house-trailer, cooperative apartment, condominium or other type of residence. It does not go into specifically if you have to own the land on which it is sitting.
3. If you have owned a mobile with no land in the last 3 years, does that exclude you from the credit?
The Form 5405 does state that a main home is the one you live in most of the time. It can be a house, houseboat, house-trailer, cooperative apartment, condominium or other type of residence. It does not go into specifically if you have to own the land on which it is sitting.
3. If you have owned a mobile with no land in the last 3 years, does that exclude you from the credit?
See question above.
4. What is the definition of a first time home buyer, i.e. how do you document you have not owned a home, is it not having taken any mortgage tax deduction on your last 3 years tax returns or what?
A first time home buyer is any individual (and spouse if married) who had no present ownership interest in a qualifying principal residence during the 3-year period ending on the date of purchase of the principal residence for which a first-time homebuyer credit is being claimed.
5. Is there anyway a child buying a house from a parent could get the tax credit?
No per the instructions on the Form 5405 http://www.irs.gov/pub/irs-pdf/f5405.pdf it states:
Who Cannot Claim the Credit
No per the instructions on the Form 5405 http://www.irs.gov/pub/irs-pdf/f5405.pdf it states:
Who Cannot Claim the Credit
A. Your modified adjusted gross income is $95,000 or more ($170,000 or more if married filing jointly).
C. You home financing comes from tax-exempt mortgage revenue bonds. This rule does not apply for a home purchased in 2009.
D. You are a nonresident alien.
E. Your home is located outside of the United States
F. You sell the home, or it ceases to be your main home before the end of 2008.
G. You acquired your home by gift or inheritance.
H. You acquired your home from a related person. A related person includes:
1. Your spouse, ancestors (parents, grandparents, etc), or lineal descendants (children, grandchildren, etc.).
2. A corporation in which you directly or indirectly own more than 50% in value of the outstanding stock of the corporation.
3. A partnership in which you directly or indirectly own more than 50% of the capital interest or profits interest.
F. You sell the home, or it ceases to be your main home before the end of 2008.
G. You acquired your home by gift or inheritance.
H. You acquired your home from a related person. A related person includes:
1. Your spouse, ancestors (parents, grandparents, etc), or lineal descendants (children, grandchildren, etc.).
2. A corporation in which you directly or indirectly own more than 50% in value of the outstanding stock of the corporation.
3. A partnership in which you directly or indirectly own more than 50% of the capital interest or profits interest.
6. Does the 5405 address these questions or what is the best web source with FAQ’s for us to refer our clients to?
The Form 5405 answers most questions but you can also check out our website www.irs.gov for the latest information on any issues concerning "First Time Home Buyers" by putting what you are wanting to search for in quotation marks it will limit the our search engine to that particular subject. Here is the link to our information center for both of the First Time Homebuyers credits with some FAQ's. http://www.irs.gov/newsroom/article/0,,id=187935,00.html
7. What form we use to report abuses of the $8000 tax credit.
The Form is 3949A http://www.irs.gov/pub/irs-pdf/f3949a.pdf 7. What form we use to report abuses of the $8000 tax credit.
Do you qualify for either of these credits? To find out if you qualify contact Steve Currington at 918-394-5626 or on the web at www.curringtonmortgage.com. You can email Steve at stevec@21dayclose.com
Interested in talking to a Realtor about listing your house? Contact Darryl Baskin with McGraw Realtors at 918-258-2600 or darryl@darrylbaskin.com
Sunday, December 13, 2009
Protect Your Home Value During Tough Economic Times
During today's tough economic times, we constantly hear abour the suffering housing market. Keep the following tips in mind to help protect the value of your home.
For estimates for residential repairs in the Tulsa, Oklahoma area, contact Jonathon Knapp of Residential Repair Inc at 918-621-1020 or www.residentialrepairinc.com.
To check your Tulsa, Oklahoma home for termite damage or wood rot, contact Duane Montgomery of Montgomery Exterminating at 918-438-4885 or www.montgomeryexterminating.com.
- Mow your yard.
- Mow your neighbor's yard.
- Keep your house painted.
- Support your homeowner's association. This is not the time to be quibbling over inconsequential matters.
- Watch your entry to the neighborhood. Keep it well maintained.
- Exterior matters most- many owners will be facing difficulty finding the funds to maintain their home as they have in the past. Don't put home maintenance issues off or you might find a bigger problem with a bigger bill later. Hire home professionals if necessary.
- Don't flood the market if you are not a necessary seller. Your presence as a home for sale (if it competes with another house in the neighborhood) could cause a seller who is desperate to sell to become more desperate and drop their price further to compete.
- Variety of selection is important.
- Talk up the neighborhood! What you say to your friends is as important as any house advertisement.
- Never say "They will never get that!" to anyone...EVER! You should HOPE AND PRAY they DO!
For estimates for residential repairs in the Tulsa, Oklahoma area, contact Jonathon Knapp of Residential Repair Inc at 918-621-1020 or www.residentialrepairinc.com.
To check your Tulsa, Oklahoma home for termite damage or wood rot, contact Duane Montgomery of Montgomery Exterminating at 918-438-4885 or www.montgomeryexterminating.com.
Friday, December 11, 2009
New Info on Buyer Tax Credit!
Many first-time home buyers that took advantage of the $8000 tax credit a year ago are still waiting for their refund. Most of these buyers amended their 2008 tax returns. The IRS says that all amended returns are reviewed by hand, therefore it is taking longer than normal.
The IRS has also clarified the guidelines for co-borrowers seeking the tax credit. For more information about taking advantage of the buyer's tax credit in the Tulsa, OK. area, contact Steve Currington, Currington Mortgage at 918-810-0092 or www.curringtonmortgage.com.
To buy or sell property in the Tulsa, OK. area contact The Baskin Real Estate Specialists at 918-258-2600 or www.darrylbaskin.com.
The IRS has also clarified the guidelines for co-borrowers seeking the tax credit. For more information about taking advantage of the buyer's tax credit in the Tulsa, OK. area, contact Steve Currington, Currington Mortgage at 918-810-0092 or www.curringtonmortgage.com.
To buy or sell property in the Tulsa, OK. area contact The Baskin Real Estate Specialists at 918-258-2600 or www.darrylbaskin.com.
Saturday, December 5, 2009
Tax Credit Extension Q & A
The Tax Credit Extension Should Boost Sales For Many Homebuyers - A Real Positive For Our Tulsa Economy
Dec 5, 2009
The federal first-time homebuyer's tax credit has really helped our Tulsa market remain robust in recent months. It's time for people with hopefully more money in their pockets to get the same deal, although not quite as big a break as the first-time buyers.
When President Obama signed the extension of the tax credit on November 6th, real estate experts felt that momentum would build in the market for more expensive homes. Although the cap on the first-time credit remains at $8,000, the income limits for first-time buyers were increased and a new tax credit of $6,500 was created for home-owners who have lived in their current residence for at least five years, but owned the home for a total of 8.
The new income limits for both kinds of credits are now $125,000 for individual buyers and $225,000 for couples. Anyone making more than those limits can claim diminishing credits.
Tulsa has some folks that are young and affluent and our city has an abundance of wealthy buyers for their age group, and for those fortunate buyers, this is a wonderful gift.
The "step-up" credit, available for the purchase of principal homes costing $800,000 or less, is well timed. We are finally seeing some larger homes selling that have been on the market for a while. As a result, home sales in the upper brackets have been among the most depressed over the past year, simply due to the economic winds shifting with each day.
Many banks really want to make home loans, so what you hear and read in the press about the total credit freeze is simply untrue, even on homes where the mortgage would exceed the current $417,000 ceiling under the high-cost market purchase limit for Fannie Mae and Freddie Mac.
We have seen a continuing steady market, which can partly be attributed to the rush to beat the November 30th home sale/closing deadline under the original tax credit program. Now, with the new law, the buyer’s clock has been re-set to get homes under contract by April 30, 2010 and closed by June 30, 2010.
That could move up the traditional buying season as higher-income buyers rush in to take advantage of the tax credit.
I would say that our typical winter slow-down in the Tulsa area from December through March will be anything but typical. There is a now a true sense of urgency, and we can all hope that the cold winter months will seem more like a normal spring market, which is ordinarily the busy time in the real estate industry.
It would have been nice if the administration and lawmakers would have simply opened up the tax credit to everyone, as it would have allowed a much larger participation in the home marketplace, and would have been a quicker, larger boost to our economy. The new law allows a homebuyer to claim the $6,500 credit without selling their existing home. This will allow homeowners to benefit from the program while renting out their soon to be primary residences, whether they are having trouble selling or just want to keep an income-producing property -- as long as they buy something new.
Here’s The Meat & Potatoes Of The Matter:
Who can receive, and how much can they claim? Most first-time home buyers are eligible for up to $8,000 on the tax credit, which is the same as the current credit. The bill creates a new credit of up to $6,500 for homeowners who have lived in their homes for five years; that provision went into effect on 12/01/2009.
How long will it last? The tax credits will expire on April 30, 2010, but home buyers under contract by April 30 will be able to qualify as long as they complete the sale within 60 days. Please remember, this will be the third iteration of a home buyer tax credit that has been in place since mid-2008.
Will the tax credit do anything for the high-end of the market? It may help a bit, but you should remember that there are income limitations associated with the credit. Also, homes that cost more than $800,000 aren’t eligible for the credit. To be blunt, many well-paid people will take advantage of it, although it won’t make a huge difference. A household earning around $150,000 is likely to buy a home of $300,000 to $600,000, so a $6,500 credit won’t be much of a factor in pushing these households out into the market, but if they are like most of us, every little bit helps and it will definitely assist the economic recovery.
So will the expanded tax credit help sales? That’s a point of debate among housing analysts and economists. The expanding of the tax credit to people who already own homes does not really greatly impact the supply of housing on the market, but it will help get some of the inventory off the books of builders and banks that are stuck holding inventory they do not want or need. If these new buyers who already own a home and sell it to finance the new one, then it has not put a big dent in the amount of homes for sale.
What we have right now are some of the best interest rates we’ve seen since May, 2009combined with the extension of the tax credit. It is a time to be optimistic and every person now considering buying a home, shouldn't procrastinate, but get pre-approved and begin the house hunting process to beat this new deadline. It will keep our Tulsa economy strong and we’ll see more job growth if homes continue to sell. Get in the game! Act now and contact a residential lender here at ONB for pre-approval and then contact Darryl Baskin or any member of his team to find and negotiate the deal for your home purchase.
Jeff Sargent
President
Residential Lending Division
ONB Bank & Trust Co
Office: 918.392.6572
Cell: 918.636.0630
Fax: 918.392.6550
jeff_sargent@onbbank.com
Dec 5, 2009
The federal first-time homebuyer's tax credit has really helped our Tulsa market remain robust in recent months. It's time for people with hopefully more money in their pockets to get the same deal, although not quite as big a break as the first-time buyers.
When President Obama signed the extension of the tax credit on November 6th, real estate experts felt that momentum would build in the market for more expensive homes. Although the cap on the first-time credit remains at $8,000, the income limits for first-time buyers were increased and a new tax credit of $6,500 was created for home-owners who have lived in their current residence for at least five years, but owned the home for a total of 8.
The new income limits for both kinds of credits are now $125,000 for individual buyers and $225,000 for couples. Anyone making more than those limits can claim diminishing credits.
Tulsa has some folks that are young and affluent and our city has an abundance of wealthy buyers for their age group, and for those fortunate buyers, this is a wonderful gift.
The "step-up" credit, available for the purchase of principal homes costing $800,000 or less, is well timed. We are finally seeing some larger homes selling that have been on the market for a while. As a result, home sales in the upper brackets have been among the most depressed over the past year, simply due to the economic winds shifting with each day.
Many banks really want to make home loans, so what you hear and read in the press about the total credit freeze is simply untrue, even on homes where the mortgage would exceed the current $417,000 ceiling under the high-cost market purchase limit for Fannie Mae and Freddie Mac.
We have seen a continuing steady market, which can partly be attributed to the rush to beat the November 30th home sale/closing deadline under the original tax credit program. Now, with the new law, the buyer’s clock has been re-set to get homes under contract by April 30, 2010 and closed by June 30, 2010.
That could move up the traditional buying season as higher-income buyers rush in to take advantage of the tax credit.
I would say that our typical winter slow-down in the Tulsa area from December through March will be anything but typical. There is a now a true sense of urgency, and we can all hope that the cold winter months will seem more like a normal spring market, which is ordinarily the busy time in the real estate industry.
It would have been nice if the administration and lawmakers would have simply opened up the tax credit to everyone, as it would have allowed a much larger participation in the home marketplace, and would have been a quicker, larger boost to our economy. The new law allows a homebuyer to claim the $6,500 credit without selling their existing home. This will allow homeowners to benefit from the program while renting out their soon to be primary residences, whether they are having trouble selling or just want to keep an income-producing property -- as long as they buy something new.
Here’s The Meat & Potatoes Of The Matter:
Who can receive, and how much can they claim? Most first-time home buyers are eligible for up to $8,000 on the tax credit, which is the same as the current credit. The bill creates a new credit of up to $6,500 for homeowners who have lived in their homes for five years; that provision went into effect on 12/01/2009.
How long will it last? The tax credits will expire on April 30, 2010, but home buyers under contract by April 30 will be able to qualify as long as they complete the sale within 60 days. Please remember, this will be the third iteration of a home buyer tax credit that has been in place since mid-2008.
Will the tax credit do anything for the high-end of the market? It may help a bit, but you should remember that there are income limitations associated with the credit. Also, homes that cost more than $800,000 aren’t eligible for the credit. To be blunt, many well-paid people will take advantage of it, although it won’t make a huge difference. A household earning around $150,000 is likely to buy a home of $300,000 to $600,000, so a $6,500 credit won’t be much of a factor in pushing these households out into the market, but if they are like most of us, every little bit helps and it will definitely assist the economic recovery.
So will the expanded tax credit help sales? That’s a point of debate among housing analysts and economists. The expanding of the tax credit to people who already own homes does not really greatly impact the supply of housing on the market, but it will help get some of the inventory off the books of builders and banks that are stuck holding inventory they do not want or need. If these new buyers who already own a home and sell it to finance the new one, then it has not put a big dent in the amount of homes for sale.
What we have right now are some of the best interest rates we’ve seen since May, 2009combined with the extension of the tax credit. It is a time to be optimistic and every person now considering buying a home, shouldn't procrastinate, but get pre-approved and begin the house hunting process to beat this new deadline. It will keep our Tulsa economy strong and we’ll see more job growth if homes continue to sell. Get in the game! Act now and contact a residential lender here at ONB for pre-approval and then contact Darryl Baskin or any member of his team to find and negotiate the deal for your home purchase.
Jeff Sargent
President
Residential Lending Division
ONB Bank & Trust Co
Office: 918.392.6572
Cell: 918.636.0630
Fax: 918.392.6550
jeff_sargent@onbbank.com
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