Westfield Carmel Homes

 According to the National Association of REALTORS, Congress has extended the First time homebuyer tax credit.
 

 

The Benefits of Homeownership

 

People buy homes for many reasons; some psychological and some financial.  So, let’s talk about each.  We’ve all been told since childhood that owning a home is part of the American Dream.  And guess what? This just might be your chance to join millions who had the same dream.  There’s nothing like being in control of your surroundings which can give a sense of emotional well being. Autonomy and pride of ownership are two examples of how homeownership can be psychologically fulfilling. 

Autonomy

Although you can’t put it all in words, there’s something special about owning your own home.  Maybe it’s because you have a certain amount of freedom that you don’t have if you rent. For instance, if you want to paint your walls a certain color or landscape the way you prefer, you don’t have to get permission from anyone.  Notice I said a certain amount.  If you choose to live in a housing addition in a Westfield neighborhood, you’ll have to abide by the rules of the Homeowner’s Association. These are rules that are spelled out in the covenants and restrictions for a particular community such as requirements associated with having pets or how high a fence can be built.

 

Pride of Ownership 

Rather you live in a neighborhood that has an (HOA) homeowner’s association, or not, owning a home can be very gratifying. Pride of ownership is a term that is often used to describe the positive feelings you’ll experience as a result of maintianing your proprty well.  As a proud owner, financial benefits are also part of the package.

Tax deductions and credits

Uncle Sam allows you to deduct property taxes, as well as, the interest charged on your mortgage loan. Interest is usually the largest portion of the loan in its earlier years. This is one of the few interest deductions still allowable. Also an $8,000 tax credit is being offered to first time home buyers who purchase a home on or after January 1, 2009 and before December 1, 2009. A tax credit is a dollar-for dollar reduction in what the taxpayer owes. The new law also defines "first-time home- buyer" as a buyer who has not owned a principal residence during the three-year period prior to purchase. For married taxpayers, the law tests the home history of both the home buyer and his/her spouse. If one does not qualify, then the married couple does not qualify. 

Equity:

Equity is the value in your home above the total amount of the liens against your home. For instance, if you bought a house in the Westfield Carmel area and owe $200,000 but it is worth $250,000, you have $50,000 of equity. This can also serve as a forced savings account, depending on the market. Communities with a strong job market and close proximity to business centers will usually have real estate that’s in demand. Therefore in an environment where homes appreciate, you can realize the gain and use the funds for whatever you choose.

So, why wait? If you are considering buying a home, now may be your time!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

How Much Should I Offer?

We're often asked by our clients who are looking for homes in the Westfield Carmel area, "How much under the listing price should we offer?" This is an excellent question. The answer is not a simple one. That's why is it important to begin the education phase of looking at homes as a first step in answering this question. It is also the best way for you to know value and to understand how sellers price their homes.

When you review and study 40-60 (or more!) listings, then drive by 10-20 and look at 5-10. You will begin to recognize the "Hot Listings." You'll also recognize the "dogs." Sellers price their homes differently for 4 basic reasons:

1. Ridiculously Overpriced!

These sellers have listened to a real estate agent over-inflate the value of their home in an effort to obtain a listing. There is a natural tendency on the part of sellers to list with the real estate agent who gives them the highest promise. However, this promise does not guarantee the sale of the home. These homes can be 10-20% overpriced. These sellers may need a "dose of reality" for a few months before they begin to realize that their home is way overpriced as compared to others in the area. The longer an overpriced home is for sale, the more likely the seller will face reality and sell at a fair price.

2. A Little Overpriced!

These sellers fall into 2 categories:

Those that feel their home are worth every penny of their asking price
Those that want to leave a little "negotiating" room.
These homes can be 4-10% overpriced. Perhaps 75% of all homes for sale are priced in this range.

3. Priced At Fair Market Value

These sellers have carefully and realistically studied other homes for sale. They have priced their homes very competitively. These homes usually sell within 4 weeks at or very near the listed price.

4. Priced Below Fair Market Value

These homes are priced below value. Perhaps the seller wants a fast sale. Perhaps the real estate agent recommended too low of a price. These homes usually sell within 7-10 days, at or above the listed price. There are usually competing offers.

Bank Protection

Even by carefully studying homes for sale, it's difficult to establish Fair Market Value. If you're obtaining a new home loan, you'll be protected by the Professional Bank Appraisal. Home lenders want to make sure that you don't over-pay for a home. If the home does not meet value in the eyes of the bank appraiser, you'll be informed.