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Multiple Bills
As I mentioned before, there are already nearly half a dozen bills being considered by Congress. The most popular bill simply extends the current credit’s deadline from November 30th, 2009 to May 30th, 2010. However, there are other variations that would expand the credit even further. One seeks to raise the value of the credit from $8,000 to $15,000 while others would change the credit so that all homebuyers, as opposed to just those who have not purchased a house within the past three years, can take advantage of it.

Economy Still in Trouble
The main reason that supporters want to extend the bill is simple: the economy is still in trouble. Without a tax incentive, U.S. home sales will drop in 2010. Specifically, many are worried that sales during the winter months (when real estate activity is typically low) will plummet and put our economy back into trouble. Senator Isakson from Georgia, who actually worked in real estate before running for office claims “December through February is historically the worst time for home sales anyway because of the winter months, so with the credit ending November 30, you have a double whammy.”

Popular Credit
In all honestly, one of the largest reasons Congress is considering extending the credit is because of its mass popularity. Politicians are always thinking about their next reelection, and supporting legislation that is popular among your constituents is a great way to get reelected. Average taxpayers are always claiming that Congress does not do enough for “main street Americans” extending or expanding the current credit would be a great way to please them.

Opposition
There is quite a bit of opposition to extending the credit. First and foremost, there is concern over its costs. The first credit was passed in a state of economic emergency. Americans were frightened that the banking system would collapse, and that the housing marketing would crash entirely. Therefore, Congress was able to get the credit created without much debate about the costs. However, when you look at the math, this credit has already been very expensive. If 1.4 million families have already taken advantage of the credit, and 400,000 more will before it expires, then we are looking at a total cost of nearly $15 billion. Additionally, experts are worried that excessive credits will be the first step in creating the next real estate bubble.

Industry Pressure
Another thing to consider when examining the housing credit is the amount of pressure real estate and construction lobbyists have put on Congress. The National Association of Home Builders, The National Association of Realtors, and even the Business Roundtable (an association of chief executives) have all published statements promoting an extension of the credit. They are also pushing for lower interest rates, and an extension of the limits on loans eligible for government backing or purchase

Likelihood of Extension
With all of this debate about whether the credit has worked or not, what exactly are the odds that the credit will be extending? Lisa Poole of Time Magazine says there is a 2 to 1 chance that it will be either extended or expanding, but I would say that the odds are probably better than that. I doubt that it will be increased to $15,000, but I am pretty confident we will see some type of extension on the $8,000 credit for first time homebuyers.

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Article Source:http://www.articlesbase.com/real-estate-articles/the-future-of-the-firsttime-homebuyers-credit-1384012.html

Here it is! The Charlotte real estate  housing update*…whew!

We’re not reeling, but we’re not moving upwards, like we had been for the past four months.

September closings (1,945) were down by 12.4%  over the month of August (2,221).  Even our average sales price dipped down by 6%. September sales averaged $196,760 whereas August sales averaged $209, 245.

Sales are down, but not down and out.

This is not a unique performance for the housing market this time of year. The fall is a traditional season with a traditional decline in home sales and real estate activity.
 
For the Charlotte market, we fared no differently.  Contracts (2,199) for September 2009 have declined by 9.7%  over the fine month of August where home contracts totaled 2,434.

The average time a home spent on the market was only three days less than last month…which was 115.7 days…this from its “active” status until the time it went “pending (under contract)”.

In the national scheme of things, that is overall pretty darn good!  Still, we have a lot of Charlotte homes coming on the market. In September alone, 4,701 new residential real estate listings came aboard! The market changes daily.

Charlotte sellers listed pricing has come down a bit as well. In the month of August, the average list price of a “sold” property was $234,504…and in September this price had dropped down 6.2% to $219,925. Quite a dip in just one month!

The first time home buyer tax credit, has helped stimulate not just one, but two levels of housing: The first time home buyer, and the first time home seller (who then became a second time home buyer).

As seen by our dip in pending residential real estate contract numbers, the surge that took place, has pretty much run its course. 

For first time home buyers that procrastinated, you may have just lost out on one of the best deals going. (Unless, of course, it comes back again.)

Why? The ability to get a loan processed to close by November 30, 2009,  has just about come to an end. The loan processors typically need a good solid 45 days to make it happen!

Was the tax credit a success?  You be the judge.  The National Association of Realtors®, states as many as 350,000 home sales this year can be directly attributed to the $8,000 first-time home buyer tax credit.

That’s a lot of first time home buyers, who may never have even contemplating owning a home before.

The big question? “Will there be a tax credit extension?”housing tax credit

The big answer, “Maybe, maybe not.”

If you were one of the many first time home buyers that did not have your 3.5% saved up for a down payment, hopefully, the stimulus package has motivated you to get that savings put together (just in case).

And, those that were locked in to leases, perhaps your lease is coming up for renewal. Go month to month (just in case).

Buyer beware…if the $8,000 tax credit comes back again…hopefully, you, too, will then take part in the American dream, your own home.

Until then, it is something wonderful to dream about and plan for!

*The numbers used in this September 2009 residential realty report became available on October 8, 2009, courtesy of the Charlotte Regional Realtor® Association based on Carolina Multiple Listing Services, Inc. (CMLS) data covering the Charlotte region.

Claude Cross is Broker/Owner of Homes By Cross. Specializing in Charlotte NC Real Estate and Relocation since 1994.

Article Source:http://www.articlesbase.com/real-estate-articles/charlotte-residential-real-estate-housing-market-fall-09-1376561.html

How to calculate property tax was an issue my wife and I discussed last spring.  It’s a reassessment year in our county and we were trying to figure out what the new tax bill might be.

I remembered from real estate school there was a formula that had about four steps to it.  Being a Realtor also, I was surprised to hear my wife say ‘you are doing it wrong’ because as a real estate paralegal (her full time job) she ‘knew’ how to calculate property tax. Yeah? We’ll see!

After a bit of research we realized we were both right.  There is a simplified way to calculate property tax and there’s a bit more complicated way.  It turns out the complicated way is, well, complicated.

CALCULATE PROPERTY TAX-QUICK AND EASY

The super simplified way calculate property tax is by taking the assessed property value, multiply it by the mill rate and divide by a thousand.

Um, ok, but what is the assessed property value and what is a mill rate?

Great questions. The assessed property value is the value the tax assessor places on your property.  This is usually different from what a licensed home appraiser would come up with, or what a buyer might be willing to pay.

A mill rate, is recognized as 1/1000th of a number.  It’s decided by the local governing authority based on what the budget needs are.  What ever the number is, divide by 1000.

Here’s an example of how to calculate property tax:

A home is valued at $100,000.  The mill rate is 20.  The calculation is:
$100,000 x 20 / 1000 = $2,000.

It’s pretty easy stuff; assessed property value multiplied by the mill rate (since mill rate is 1/1000th of a number you must divide by a thousand).

CALCULATE PROPERTY TAX–THE COMPLICATED WAY

Let’s assume this year is a tax reassessment year and your county needs ten million dollars to meet its budget demands, up from eight million three years ago. This amount includes the basic government services along with all current and future projects that have been approved by the board of trustees.

Once the budget amount has been calculated (ten million) the tax assessor will reassess the property values in order to meet the budget amount.

The tax assessor will take into consideration the estimated property value, proposed assessed valuation, state equalizer, exemptions and the current tax rate when establishing property taxes.

The following is an example:

Let’s say your home is worth $100,000 and the county has your assessment level at 10%.  Your tax will show a home value of $10,000. This is called a Proposed Assessed Valuation.

The tax assessor takes the Proposed Assessed Valuation and multiplies this by something called a State Equalizer.  In this example, the State Equalizer is 2.8439.  When you multiply the Proposed Assessed Valuation with the State Equalizer you’ll get the Equalized Assessed Value, or $28,439.

Once the tax assessor knows the Equalized Assessed Value he’ll subtract any type of exemptions you might have such as a home owner’s exemption or a senior’s exemption.  If this home is your primary residence then you’ll qualify for the home owner’s exemption of $5,500.  This means your Adjusted Equalized Value is $22,939.

Finally, the tax assessor will multiply the Adjusted Equalized Value with the Tax Rate which is adjusted every tax reassessment year.  This year, the tax rate is 10%.  When the Adjusted Equalized Value is multiplied by the tax rate ($22, 939 x 10%), the resulting number is your estimated property tax bill or $2,293.

Whew! Say that three times real fast.

At the end of the day, it’s much easier to use the first method to give you a general idea of what your taxes might be.  However, the second way is more indicative of how it’s really calculated. In order to get all of the necessary numbers you would need to call your tax assessors office and ask.

In summary, there are two ways to calculate property tax, the simple way and the complicated way.  The simple way is very easy but it’s only a close guess. On the other hand, the complicated way is far more difficult but much more accurate.

Steve Hattan is the author of How to Negotiate Thousands off Any Realtor Commission, a highly regarded step by step guide on paying less than the typical sales commission. You can contact Steve through his website www.affordablelistings.com.

Article Source:http://www.articlesbase.com/real-estate-articles/calculate-property-taxthe-simple-way-vs-the-complicated-way-1339493.html