The First Time Homebuyer Tax Credit Expires November 30, 2009 That means you have limited time to find a home before it’s too late. It is recommended that you enter into contract prior to October 15 if you wish to close before the tax credit expires. With closing timelines stretching anywhere from 30-50 days, if you want to take advantage of the $8,000 tax credit and low interest rate environment, you should take action soon!.

What is the Definition of a First Time Homebuyer?
The law defines “first time homebuyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homebuyership history of both the home buyer and his/her spouse.

Who is Eligible?
First time homebuyers purchasing any kind of home–new or resale–are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.
Income limitations of $75,000 for single taxpayers and $150,000 for married taxpayers who file a joint tax return apply to this tax credit. However, taxpayers who earn slightly more than the limits can apply for a reduced tax credit.

What Type of Home Qualifies?
Any home purchase qualifies, including single-family homes, townhouses, condominiums, manufactured homes and houseboats. Qualifying homes may be an existing home, new home or a home the owner contracted to build. Those who own a vacation home or rental homes that are not their principal residence are also eligible for the tax credit if they buy a principal residence.

Buy Now and Take Advantage of This Tax Credit
Now is the time to buy a home you might otherwise have not been able to purchase. Contact Cody Touchette at Mortgage Advisory Group today for free professional advice on this program and for fast, easy loan qualification. Need a referral to a great Mortgage Advisor? Call 425-317-8000 and we will ensure you get the help you need. Your Future is Our Focus.

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1. The New, Improved, (and extended) $8,000 Tax Credit
2. The cost of waiting

Tags: buyer, tax credit, thoughts

“Where have all the good men gone and where are all the gods? Where’s the streetwise Hercules to fight the rising odds?” Bonnie Tyler, 1985, (“Holding out for a Hero“, from the Footloose soundtrack)

A common theme in the modern world is the wildly optimistic, hopelessly hopeful, against-all-odds rescue story. Maidens in distress, burning buildings, meteors plummeting to earth: all require a superhuman, faster than a speeding bullet, able to leap-tall-buildings-in-a-single-bound kind of rugged individual who sizes up desperate situations and makes the right snap decisions at a moments notice.

If you’ve been awake the last 2 years, you’ve probably caught wind of the fact that the world economy could use a little intervention f rom the man of steel, or just about anyone who’s willing to assume the mantle. Just to be clear, I’m not volunteering; I look terrible in tights, and tend to go pale at the sight of blood.

However, an article I came across in BusinessWeek got me thinking about what this economy presents in terms of opportunity. As many of the business leaders interviewed mention, the shift of focus toward growth and optimism is happening, and it will be those who have the courage to take the leap of faith toward opportunity who stand to reap the greatest reward.

2008 was a brutal year for real estate. From the sub-prime meltdown in August of 2007, through the Bear-Stearns, Lehman Brothers debacles, and the subsequent banking crisis, the financial world has been in a constant state of upheaval. The home financing standards pendulum, which was tilted toward ludicrously loose (think “Liar’s Loans”), swung a full 180 to be so restrictive as to dramatically impact the ability of financially healthy businesses from securing  operating capital. And, of course, there’s the wildly volatile stock market- what to make of that?

Signs that the worst may be over have arrived in the form of restrictive new legislation, such as the HVCC and HERA laws governing appraisal procedures and lending disclosure timelines. Both of these are, in my view, knee jerk legislation aimed at appeasing a few big lobbies who’ve wanted to get their fingers into some pies that aren’t theirs. I fully anticipate that we’ll see modifications to these rules and relaxation of some of the more heinously restrictive requirements. It will take time, but I believe those changes will come.

Back to our hero! If jobs are the crux of the problem, and consumer indexes won’t reflect real growth without them, it seems the place to start is with those businesses that have the ability to hire. However, as I mentioned earlier, the funds for businesses have been scarce in this downturn. Even firms with the financials to justify growth investment have been hesitant, or unable to, due to the paucity of affordable financing.

We’ve seen attempts from various government agencies to fill the role of hero, and have a legacy of debt, entitlements, and bureaucracy to show for it. Well, here’s a new idea- how about private investment funds to the rescue?! I tripped across this last night, and found it pretty intriguing. I’m not crazy about the outfit  this gal’s wearing (um, hon- mini skirts and barstools are a combo best left to co-eds, not business professionals on-camera- and yes, I know this is ‘happy hour’!), but the message is certainly worthy of consideration. What do you think?

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Tags: buyer, thoughts

With all the talk since January of inventive incentives to seemingly stimulate everything from hair growth to employment, never mind the pin-striped panhandlers on Wall Street (don’t even get me started!), it’s been interesting to watch the recent evolution of the environmental movement. From a tree-dwelling band of radical long-hairs with an agenda but little else, the cause has grown to encompass nearly every segment of our consumer-centric society. To paraphrase Chickenman, “It’s Everywhere!”

From Dr. Bronner’s soaps (one of the true originals) to the Toyota Prius, there’s been a sea change in perceptions of the impact our daily activities have on the planet. Few consumer products have escaped the scrutiny and benefit of an eco-makeover, with some being truly re-made, while others have received the marketing equivalent of a botox injection- also known as ‘Green-washing‘.

Being green was once a tough sell due to the perception that it was ‘difficult’, and expensive. As green products and processes have slipped into the mainstream, that position has gradually become harder to defend; especially as the businesses who once protested have come to realize the economic benefits of waste prevention, thoughtful  materials utilization, and positive PR.  Green has become a critical component of the consumer psyche, which makes it essential for business and government to recognize and support efforts to provide products that fill the need.

Housing, being one of the largest  financial and environmental purchase decisions most of us make, has the potential for dramatic impact on both fronts. Of course that’s why incentives for green construction have become high profile bartering chips in the latest round of congressional negotiations over economic stimulus. Combined with a growing demand for higher efficiency homes, it looks like we may be on the cusp of a new paradigm in the construction arena.

Environmental Standards have already been developed for both commercial and residential construction. What many builders have yet to absorb is that achieving the residential standard does not have to be an exhaustive exercise. Using an escalating scale, builders can choose to participate at any of the 4 levels, and can expect to reap the rewards accordingly. Which is where the consumer comes in: Green is on the list of criteria for a growing number of homebuyers.

This is where the stimulus portion of Green really gets traction:  the numbers indicate that green homes actually sell at a premium, while costing less to own, with little or no significant upfront expense differential from traditional construction methods.

After all this time, it looks like Kermit got it wrong; It’s Easy Being Green!

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Great Investment!Incredible value! Townhome style duplex on quiet street w/serene setting in Lowell. Newer indvidual decks overlook greenbelt w/peek-a-boo mtn view. Each unit has 2bed/1.5ba and 1 car gar PLUS lots more parking (RV parking). Unit B has new flooring thru-out, new bathroom up, new light fixtures in main living area & both bathrooms. Each kitchen has eating area and slider access to deck. W/D located inside each unit. Rents are $950 & $975.

List Price: $315,000
MLS#: 29044345
Address: 2118 49th St SE, Everett WA 98203
Bedrooms: 2 in each unit
Bathrooms: 1.5 in each unit
Square Feet: 1752
Price/Sq. Ft: $185.50
Year Built: 1976
Taxes: $2,953 (2008 Tax Year)
Heat Source/Type: Electric Baseboard
School District: Everett

Call Lisa Bender at 425-770-4438 or Jesse Moore at 425.876.0766 or Dennis Pearce at 206.931.9945 for more information.

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After an intense (and fun) Pickett Street Properties retreat, I needed a bit of mind-numbing TV. In my search for something to watch, I came across the Food Network show called “Food Detectives.” It’s a show that does experiments with food—sort of an Alton Brown meets MythBusters.

On the night of my respite, they did an experiment on food and how it tastes based on presentation and flowery descriptions. Two groups of diners were told they were going to be reviewing a new restaurant and after their meal they were given a survey to fill out.

The first set of diners’ menus said they would be having “Green Salad, Fish, Green Beans, Potatoes and Chocolate Cake.” They were sat at tables with plastic table cloths, served New Jersey red wine in plastic cups, and their meals were presented on rather dated plates.

The second set had “Crisp Mescluin Seasonal Greens, Succulent Panko encrusted St Peter’s Fish, Hericot Vert, Potatoes au Gratin and Belgium Double Chocolate Cake.” They were sat at tables lit by candelight and adorned with linen table cloths. They were served a red wine from Nappa valley and the meal was presented on a classic plate.

Did I mention that the food itself was from a warehouse store and aside from the presentation, the food was the same?

The hypothesis is that people will be biased based on expectations and will seek to verify their expectations. In other words, if you think it’s going to be crispy or succulent, you will look for that. While I anticipated the results would show the better presented food would be the “winner,” I was surprised at the  difference in perception.

Plain Jane customers rated the food on average at 3.5 (out of 10) and would pay an average of about $10 for the meal. Some of the people were interviewed on camera and the comments were very critical. One person even said that they couldn’t finish their meal.

The second group with the better fancier menu names and nicer presentations rated the food an average of an 8 and would pay $38 – nearly four times as much as the first group!! One of the interviewee’s said that the fish reminded her of her childhood and it brought back lots of fond memories of eating dinner with her mother. Same frozen fish – many very different opinions.

The same is true in real estate. A home sparingly adorned will be thought of simply and sell for less money – the same home, once staged by a professional, can change the entire experience for a potential buyer. The results from Food Detectives reinforce the Pickett Street Team’s belief that a home should be professionally photographed, staged and promoted with excellent marketing copy.

Successful marketing is no more than managing perception. Choosing a real estate agent that understands this can mean the difference between a frozen fish and a memory of mom. Perception is a powerful thing – if Food Detectives is any indication, it might be more powerful than reality itself.

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Warning: if Accounting isn’t your language of choice, your eyes may be about to glaze over. However, as with many things arcane, mark-to-market accounting  may be having a huge impact on the world we live in right now, and according to many critics, could well be one of the root causes of the current financial crisis. Mark-to-Market accounting is a reporting rule that requires financial institutions to value their current investments at today’s value, even if they have no intention of selling those assets now, or anytime in the foreseeable future.

As an example, if you were to consider the current value of your own 401k, which most of us are already doing with some significant trepidation, you’re  likely down about 50% from the highs of 2 years ago.  However, you’re able to do the calculations and realize that so long as you don’t sell today, you’ve still got a chance to recover on the long haul. Mark to Market doesn’t allow banks that option, but instead forces them to report the values on their holdings at todays value, as if they were going to sell everything today.

Because banks are not allowed to lend every dime they have access to, but must hold a portion back to cover their loans (see fractional lending), some argue that an accounting rule that ties asset value to current valuations, rather than allowing them to take a longterm view, much as we would, places artificial restrictions on their ability to recover from market fluctuations, and is at least partially responsible for the current liquidity problems in the world financial system.

The other side of the argument says that banks, whose actions with risky assets have largely brought this crisis on themselves, should not be allowed to price their asset valuations at anything other than current market value. Allowing them to do so essentially is seen by some analysts as rewarding the irresponsible behavior that started the initial cascade, and passing the risk on to the taxpayers.

Ultimately, the question of mark to market accounting will be coming to congress in the not so distant future. Legislation being what it is, we’ll have to see what comes of this, and whether our current administration decides to address it as an accounting problem, or a consumer protection issue.

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