Massachusetts Home Buyer Guide

Who Is The Typical First-time Home Buyer?

First-time home buyers reached the highest market share on record during the past year, according to a National Association of REALTORS® (NAR) survey of home buyers and sellers.

The profile shows the median age of first-time buyers was 30, and the median income was $61,600. The typical first-time buyer across the U.S. purchased a home costing $156,000, down from $165,000 in the 2008 study, and plans to stay in that home for 10 years.

Fifty-five percent of entry-level buyers reported they financed their purchase with an FHA loan, while another 8 percent used the VA loan program.

First-time buyers who made a down payment used a variety of sources: 61 percent used savings and 22 percent received a gift from a friend or relative, typically from their parents. Six percent received a loan from a relative or friend, 6 percent tapped into a 401(k) fund, and 6 percent sold stocks or bonds. Ninety-six percent chose a fixed-rate mortgage.

First-time buyers often make financial sacrifices to purchase a home: 39 percent cut spending on luxury items, 38 percent cut back on entertainment and 30 percent cut spending on clothes.

Only 12 percent said financing their first home was more difficult than expected, but 13 percent of successful buyers said they had experienced a purchase agreement that was canceled, terminated or fell through; and 8 percent had been rejected by a lender. Buyers searched a median of 12 weeks and viewed 12 homes. Among buyers who used an agent, 63 percent selected a buyer’s representative. 

Home Buyer Tax Credit Extended And Expanded

With the expiration of the first-time home buyer $8,000 tax credit set to expire in less than a month, the U.S. House of Representatives voted 403-12 November 5, 2009 to extend and expand the tax credit to include many buyers who already own homes, the Associated Press reported.

The U.S. Senate approved the measure Wednesday, and the White House said President Barack Obama would sign it Friday November 6, 2009.

Buyers who have owned their current homes at least five years would be eligible for tax credits of up to $6,500. First-time home buyers, defined as anyone who hasn't owned a home in the last three years, would still get up to a $8,000 tax credit. To qualify, buyers in both groups have to sign a purchase agreement by April 30, 2010, and close by June 30, 2010.

The latest extension is expected to be the last.

The credit is available for the purchase of principal homes costing $800,000 or less, meaning vacation homes are ineligible. The credit would be phased out for individuals with annual incomes above $125,000 and for joint filers with incomes above $225,000. The previous income limits were $75,000 for individuals and $225,000 for joint filers.

The credit would be extended an additional year, until June 30, 2011, for members of the military serving outside the United States for at least 90 days.

Fox Biz News Video On $8,000 Tax Credit

Rebecca Diamond on Fox Business News' "Happy Hour" discusses whether to extend the $8,000 first-time home buyer tax credit that is set to expire November 30, 2009.

Buyers Rush To Qualify For Tax Credit

A recent article in The Boston Globe suggested that Massachusetts first-time home buyers were hurrying to purchase their first home in order to qualify for the federal first-time home buyer tax credit.

Real estate professionals claim these buyers are bidding up prices for homes.

"[A real estate broker] said he recently listed a two-family home in Dorchester that attracted nearly 200 potential buyers and result ed in more than 30 offers, some of which were significantly above the $194,000 asking price."

Although I have had many clients over the past several months buy a home this year, in part, to take advantage of the tax credit, I have not seen home buyers loose sight of the true value of a single-family home or condo. It certainly doesn't make sense to pay more than a home is worth, just to receive an $8,000 tax credit. 

Dave Kres On The Banker & Tradesman Podcast

My business partner Dave Kres, who also is the president of the North Shore Association of REALTORS®, was interviewed for the Banker & Tradesman podcast on September 30, 2009. He discusses the Massachusetts real estate market. Use the link below to listen.

http://www.bankerandtradesman.com/files/the_closing/theclosing093009.mp3

Feds Consider Extending $8,000 Tax Credit

With strong support from Realtors, the White House and Congress are considering extending the first-time home buyer tax credit.

The credit covers up to 10 percent of a home’s price, up to $8,000. The current tax credit is available to first-t-me home buyers that close by November 30, 2009.

Home buyers that want to take advantage of the tax credit need to get their home search started right away.

Find Homes For Sale In Massachusetts.

Read The Boston Globe Article

Short Sales Are Awful

Tyler and Devon have waited three months to hear back on their short sale offer. This video is part of My First Place show on HGTV.

Short sales are just awful. This story had a happy ending. Most short sales do not have happy endings.

So What Does $5 Million Plus Get You in MA?

In this battered real estate market, how many single-family homes priced at $5 million or more do you think are on the market in Massachusetts? Maybe five or 10. Certainly no more than 20, right?

Well, there are 70 luxury homes on the market priced for $5 million or more in Massachusetts as of August 29, 2009.

Check out these Massachusetts luxury homes online.

Home Buyer Tax Credit Loan For Down Payment

As part of the Massachusetts Recovery Plan, Governor Deval Patrick today announced July 14, 2009 a first-time home buyer tax credit loan program through MassHousing that will allow first-time home buyers to borrow up to $8,000 in advance of their federal tax credit for homes purchased with a MassHousing loan before December 1, 2009.

The loan will allow Massachusetts home buyers to use the $8,000 tax credit from the federal Housing and Economic Recovery Act (HERA) of 2008 as a funding source at the time of closing to help purchase the home (i.e., for down payment and/or closing costs). Under HERA, the maximum available credit is $8,000 and is claimed when home buyers file their 2009 federal tax return.

Applicants must meet certain qualifications, including, (1) applicants must be first-time home buyers using a MassHousing mortgage through a MassHousing-approved lender; (2) home buyers must use the home as a principal residence for a minimum of three years (the tax credit loan cannot be used for investor properties); and (3) home buyers must purchase a one, two, three or four-family home from a seller unrelated to the buyer by November 30, 2009.

Home buyers who take advantage of the program will have the principal and interest payments on the tax credit loan deferred from the time of closing until the loan due date of June 1, 2010. If the loan is not repaid in full by June 1, 2010, the loan will be amortized for 10 years at the same interest rate as the borrower's first mortgage loan.

I only have one question. Why wasn't this program launched three or four months ago? There's only about three months left to find a home and still have enough time to close before December 1, 2009.

Read The Press Release About The Home Buyer Tax Credit Loan

Many Proposals To Extend, Increase Tax Credit

There seems to be more than a little support for extending and/or increasing the tax credit for first-time home buyers, USA Today reported June 23, 2009.

One proposal calls for expanding the tax credit to $15,000 from the current $8,000 and eliminating any income restrictions. That same proposal would eliminate the first-time home buyer requirement.

Another proposal would extend the current tax credit to all home buyers through 2010.

Read The USA Today Article

Bill Would Increase $8K Tax Credit To $15K

U.S. News & World Report's The Home Front blog reported June 12, 2009 that Georgia Republican U.S. Senator and former real estate professional Johnny Isakson filed a bill June 10, 2009 that would expand the current first-time home buyer tax credit from $8,000 to $15,000.

Besides the increased tax credit, it could be taken by anyone who buys a primary residence, instead of only by first-time home buyers.

The bill would also remove the income limits. Presently, the tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

The credit would be available for one year following the enactment under Sen. Isakson's bill.

I think the bill should be retroactive by two to three months, so it doesn't put the brakes on deals because home buyers think they'll receive an extra $7K by waiting. In addition, now that the bill has been filed, it should be voted up or down quickly, so home-buying decisions are not put on hold while the bill is pending.

“'The first-time homebuyer tax credit has made a difference,' said Isakson in a statement. 'First-time homebuyers used it and the market stabilized, but we don't have a recession in first-time home buyers. We have a recession in the move-up market. One of the biggest problems facing the American people today is an illiquid housing market, a decline in their equity, a decline in their net worth and a depression in the housing market that we are obligated to correct if we possibly can.'”

Read The Home Front Post

Andrew McKinney Joins Buyers Brokers Only, LLC

Attorney Andrew McKinney recently joined Buyers Brokers Only, LLC. He is an exclusive buyer agent, with an office located in the South End neighborhood of Boston.

Andrew helps first-time and experienced home buyers purchase properties in Boston's neighborhoods, including the South End, Back Bay, Fenway and South Boston, as well as the suburbs surrounding Boston, including Needham, Newton, Wellesley and Waltham.

Andrew is a licensed real estate broker in Massachusetts, is a member of the National Association of Exclusive Buyer Agents, Greater Boston Real Estate Board, Massachusetts Association of REALTORS® and the National Association of REALTORS®.

Andrew graduated from Wheaton College in 2000. He earned his Juris Doctor Degree from Suffolk University Law School in 2005. Andrew is admitted to practice law at both the state and federal level in the Commonwealth of Massachusetts.

Andrew can be reached using email or by calling his mobile (617) 501-0233. You also can receive latest home listings in the Greater Boston Area from Andrew.

Andrew is a native of Needham, Massachusetts, and he presently resides in Boston.

May Sales At Buyers Brokers Only, LLC

The attached PDF has just some of the homes Buyers Brokers Only, LLC help home buyers purchase in May 2009.

Some_Sales_In_May_2009

Find home listings in your area of Massachusetts.

'Mega Mortgages' On The Rise

A report by Boston Business Journal Reporter Lisa Van der Pool states that the number of $1 million plus mortgages have risen in recent months. Watch the NECN video below for more details.

Stuart Slawsby Joins Buyers Brokers Only, LLC

Attorney Stuart W. Slawsby recently joined Buyers Brokers Only, LLC.

Stuart is an exclusive buyer agent, with an office located in Hingham, MA. He helps home buyers purchase homes in Hingham, MA; Scituate, MA; Cohasset, MA; Hull, MA; Rockland, MA; Duxbury, and the surrounding communities.

Stuart is a licensed Real Estate Broker in Massachusetts, and he is an exclusive buyer agent that assists buyers in purchasing both residential and commercial property in the greater South Shore area. Stuart was admitted to the Massachusetts Bar in 1998.

Stuart is a licensed real estate broker in Massachusetts, a member of the Massachusetts Association of REALTORS®, Greater Boston Real Estate Board and the National Association of REALTORS®. He also is a member of the National Association of Exclusive Buyer Agents.

Stuart can be reached using email or by calling his mobile (617.335.9929). You also can fill out a form on his Web page to receive the latest home listings on the South Shore by email.

A graduate of Cornell University in 1981 in Business, Stuart then went on to receive his Juris Doctor from the University of San Francisco in 1985, and he received his admission to the Pennsylvania Bar in 1986.

Stuart has worked in the food industry negotiating contracts and million dollar supermarket acquisitions. Stuart also has experience with building, health inspectors, and other city and government agencies over the years. He is a member of the Massachusetts Grocers Association and a lifetime member of Alpha Epsilon Pi Fraternity. Stuart lives with his wife, son, and a golden retriever in Hingham, and he is active in the Boy Scouts of America and volunteers for local houses of worship.