Bailout for our big mess….

The foreclosure rate has really gotten out of hand. I am glad the government has decided to step in on this crisis. The government’s bailout plan will buy out the bad debt that the banks and mortgage lenders are carrying.  The bad debt will be removed so the banks can financially recover.  Part of the bailout package allows the government to loan money to owners in danger of foreclosure. The government will buy the “bad” loan and make a new loan to reflect the current market value.  This will substantially reduce the loan amount and make the payment more affordable to the homeowner. According to the McCain plan, the homeowner must prove a hardship and it must be their homestead among other criteria.  This process will keep the home from being foreclosed on and keep the homeowner in the home. This plan will also aid the housing market with less foreclosed homes on the market. Only time will tell if this is actually going to work, but something had to be done to clean up the housing market mess.

Foreclosure Tax Credit

Looking for a great deal on a foreclosure?  Well now is the time to begin your search.  The market is being saturated with foreclosures in Florida.  Currently, Florida is the second in the nation for foreclosures.  The senate is on board to help with this matter.  In April, the Senate passed The Foreclosure Preventions Act of 2008.  This bill includes a $7,000 tax credit for the purchase of foreclosed properties.  This credit should be divided equally over two years following the purchase.  This credit is only available, if the property will be used as the buyer’s primary residence.  This bill has already been approved by the House and Senate and will soon go to the President for final approval. 

Has the market bottomed out?

This is the question on everyone’s mind when it comes to buying or selling.  I ponder on this subject often.  It may very well have hit the bottom.  I have had conversations with many other practitioners in the real estate field in the Lake Wales area and this is the general consensus. 

 

Prices have seemingly come down to a point where most working people can afford to buy.  Due to many foreclosure and distress sales, prices have been driven down even further.  As a Realtor, I have experienced an increase in activity in the last few months.  Increases in showings and sales.  This is a positive sign that the market has bottomed out and the market is on an upward climb.

 

Still though, seller’s need to be careful to price their homes at a price that will reflect the most recent sales.  Your Realtor can advise you on what to price your home in today’s market based on a Comparative Market Analysis.  This analysis will contain homes that are most similar to yours and should be the most recent sales prices.  It is important to price your home accordingly for many reasons.  One being that most people will obtain a mortgage when purchasing and the home will have to appraise at the sales price.  If your home is overpriced to start with, it will discourage potential buyers from viewing your home.  They will seek out the homes that are priced correctly.  After all, there are many good deals out there.  In today’s market, you must have the proper conception about your home’s value in order to have a successful closed sale.

The Benefits Of A “Green House”

With all this talk about going Green, is it smart to have a “Green House”?  Ecologically and economically speaking yes.  A “green house” is a home that has installed energy saving or environmentally friendly products.  Today, there are many “green” products available on the market for your home.  The biggest and the most energy saving source is solar energy systems.  These systems can range from solar powered hot water heaters, solar powered heaters for pools, to solar powered electricity for your entire home. 

 

According to Energystar.gov, the typical household spends $1,900 a year on energy bills. Household appliances are another major energy using factors.  Appliances such as refrigerators and clothes dryers are the most costly.  When shopping for appliances, look for the energy star symbol.  These appliances are the most effective in saving you money. 

Compact fluorescent bulbs can use up to 75% less energy than standard incandescent light bulbs and last up to ten times longer; so replace those bulbs as fast as you can.

Insulation in a home is also very important.  You must have properly installed insulation to maintain even temperatures throughout your home.

 

The newest product that was recently brought to my attention is a carpet that is made from recyclable plastic beverage bottles. The company uses 30 plastic bottles for every square yard of carpet.  The carpet was surprisingly soft and seemed very durable. 

 

You can also purchase paint products that are environmentally friendly and healthier to use in the home.  These paints can be non-toxic, with low or zero VOC’s opposed to traditional paints, which release dangerous gases into the air.

               

Another aspect to consider is the many federal tax credits for qualifying energy products.  One of the credits includes qualifying solar energy systems.  The tax credit is 30% of the cost of the system, up to $2,000 through December 31, 2008. 

 

When home searching, look for homes with energy star appliances or other earth friendly products.  If building a home, ask your builder if the home qualifies for the energy star recognition.  This could mean substantial savings for the homeowner. 

 

Ultimately, there are many ways to have an environmentally friendly home.  We all need to realize that in some way we are all responsible for what the earth will be like in the near future.