This tax change is in effect for 2009 returns, but it's fate for next year is uncertain. This option especially benefits older homeowners and others who have paid off or paid down their mortgage and no longer have the big interest deductions that usually are the major reason for itemizing. © 2009, Real Estate Information Services, Capitol Assets, Choice Real Estate, Inc.

2) Know your builder- A great floor plan isnt worth much if the builder doesnt deliver whats promised. Check past customers, suppliers and subcontractors for references. J.D. Powers and Associates conducts an annual survey of home-builder satisfaction in 24 large markets (www.JDPower.com). Small builders warrant a Dun & Bradstreet check by your agent to determine their financial soundness, especially under current market conditions.

3) Get it in writing- Make sure understandings between you and the builder about any aspect of the home, site or transaction are in the contract or an addendum.

4) Understand everything has a cost- Dont expect a builder to make free alterations or substitutions.

5) Make decisions early- The earlier decisions are made, the less risk of incurring extra costs.

6) Stick with your decisions- Try to make your decisions final. Changes, whether for a custom home or for a builders model, can add time and expense to the project.

7) Check progress with a purpose- Who can resist taking a peek at how your new home is coming along, even though builders usually discourage it (construction sites can be dangerous, so leave the kids at home). Take note that the home is being completed according to the plans and that any modifications are being done as agreed.
© 2009, Real Estate Information Services, Capitol Assets, Choice Real Estate, Inc.

What could be easier? Why would you want or need to enlist the assistance of a Realtor? Because going it alone isn't the best idea for a number of important reasons. And having a Realtor on your side shouldn't cost you a dime, so why risk it?

Just as with the purchase of an existing home, having the aid and counsel of a "buyer's agent" can help you get the most out of the process, while helping to prevent all kinds of problems. To make sure that the builder recognizes that you are represented by a Realtor, take them along on your first visit. An alternative is to bring their business card, tell the builder rep that you have an agent that will be representing you and ask if that is okay. If they say "no," well, we would wonder whether the relationship with that builder would be one based on mutual trust.

What can a Realtor do for you?
First, you want to make sure that you have found the best location for your needs. There may be developments that you are unaware of which can even better fit your requirements. If you are smitten with a particular development, your agent can let you know whether there are foreclosures or short sales there that might be a better buy or that you should at least know about since they will have an influence on home prices, including the builder's price, in the neighborhood.

Your buyer agent can help you make sure that you have considered all the alternatives that meet your budget and other criteria. When you have settled on the choice of a home, the builder rep (who may not even be a licensed real estate professional, let alone a Realtor!) will present their standard contract for your signature. Realize the builder's lawyers have carefully crafted this so that it heavily favors the builder's interests.

Builder contracts are not set in concrete. They can be modified, though builders will often resist this, particularly if you have no one backing you up. For example, builder contracts typically permit substitution of materials if those specified do not arrive in time and may cause a delay in construction. You and your agent may want to insist that you have approval over any such substitutions, lest that French door you loved turns into a sliding glass door. Even if you do not alter the contract, your agent can help you better understand its provisions and pitfalls and, should problems occur, help you resolve them.

Once you have decided on the particular model home you want, you'll generally have a wide range of extra cost options available to you, depending on the stage of construction. The temptation to load up on options is often hard to resist. Having a buyer's agent who can lend a critical eye to help you sort through the list of addon items will better enable you to stay within your budget. Lavishing money on options that will not translate into value is not advised in today's competitive housing market in most cases, most especially if the home might have to be sold in the not too distant future.

That brings us to the issue of price. When sales are strong, builders can stick to their list prices and reject below-list offers out of hand. However, with sales still lagging badly, builders are just glad to have the chance to negotiate. Including some options is a minimum. Much will depend on the inventory (if any) and builder-specific issues, as well as the local housing market generally. It helps to have an agent who is monitoring the pulse of the market every day and communicating with other agents who may have recent dealings with the same builder.

Don't think that the builder will give you a discount simply because you don't have an agent. That won't happen. In addition, if you are unable to attend inspections for foundation work or predrywall, your agent can go for you.

If you don't live near the development, they can periodically stop by the work site, supply you with progress reports, and photograph or videotape phases of the construction and an agent can help if major obstacles emerge. If you have dealt only with the builder's sales representative, however pleasant and helpful, understand that you are alone in this battle.

The builder rep may try to resolve things fairly, but make no mistake about whose side that individual is on.

If you have a home to sell, the builder is probably going to want assurance that you have a professional marketing your current residence. Although existing home sales are picking up in many places, they are still slower than a few years ago. To give yourself the greatest chance for a sale at the best price, you may want to list it well in advance of the expected delivery date for the new home, even if it means having to move to a short-term rental. If you have an agent with whom you are working, all these issues can be addressed as a whole. © 2009, Real Estate Information Services, Capitol Assets, Choice Real Estate, Inc.

Montgomery County Agent Ben White

Search new homes for sale in Maryland Virginia and D.C.

Making the first-time buyer credit even more attractive is that FHA is permitting the credit to be advanced to a purchaser to cover closing costs, an interest-rate buydown or to increase their downpayment beyond the 3.5% minimum. To be a “first-time homebuyer” you may not have owned a principal residence in the three years prior to the date of purchase of the home for which the credit is being claimed. First-time homebuyers are flocking to FHA mortgages because of their low downpayment requirements (a minimum of only 3.5%) and more liberal loan qualification standards.

There is an income limit to qualify for the credit. You must have “modified” adjusted gross income (MAGI) of $150,000 or less if you are a couple filing a joint return, $75,000 or less if youre single to get a full credit. The credit is 10% of the cost of a home, so a house costing as little as $80,000 is enough to qualify for the full credit. Since the credit is refundable, the government will pay you the difference if your tax liability is less than your credit amount. Unlike the first version of the credit, you dont have to pay it back.

• The tax credit is available for first-time home buyers to buy a primary residence
• First-time home buyers who purchase a home from the start of the year until the end of November 2009 are eligible for the lower of an $8,000 or 10% of the value of the home tax credit. a tax credit, as opposed to a tax deduction which only reduces your taxable income.
• no repayment required

ORANGE LINE INTO FAIRFAX COUNTY, VIRGINIA:

walk to Rosslyn metro

walk to Clarendon metro

walk to Ballston metro

walk to east Falls Church metro

walk to west Falls Church metro

walk to Dunn Loring-Merrifield metro

walk to Vienna/Fairfax metro

1. Be prepared when you apply.

Get your documentation together for the first meeting with your mortgage professional. Saying you cant find a document wont relieve you of the responsibility for getting it.

2. Be sure to disclose everything

An IRS form 4506 (tax return request) will lead to discovery of any write-offsfor the home business you are running. Your pay stub will show any child support you are paying if its court ordered. Disclosing it up front is betterthan having it turned up by your lender.

3. Work to improve your credit scores.

If you have missed a payment, contact the lender to see if you can resolve the issue before an adverse item goes on your credit report. If you see an error on your report, get it corrected immediately. You, alone, are responsible for keeping your report free of errors. Get a free report (the only truly free site) at annualcreditreport.com.

4. Be patient.

Due to increased paper work and greater due diligence, loans are taking longer to approve and to close. Remember, your mortgage professionals cant speed up the process if you delay in providing documentation.

5. You may be asked for additional documentation.

The current market climate has made everyone very careful, so some lenders are asking for info beyond what Fannie Mae, Freddie Mac or FHA/VA require.

6. While ratios are being strictly enforced, flexibility exists where there are strong compensating factors.

Write a good explanation letter where needed. If you anticipate a raise, get your boss to document it. If you have a retirement account with a former employer,get the paperwork immediately. © 2009, Real Estate Information Services, Capitol Assets, Choice Finance, Choice Real Estate, Inc.

RED LINE IN MONTGOMERY COUNTY, MARYLAND:

walk to Shady Grove metro

walk to Rockville metro

walk to Twinbrook metro

walk to White Flint metro

walk to Grosvenor metro

walk to Bethesda metro

RED LINE CONTINUED DOWN THROUGH D.C., AND BACK NORTH INTO EASTERN MONTGOMERY COUNTY:

walk to Silver Spring metro

walk to Forest Glen metro

walk to Wheaton metro

walk to Glenmont metro

ANNE ARUNDEL COUNTY 410-222-7000
Neighborhood Info, www.aacounty.org
Schools, www.aacps.org
Police, www.aacounty.org/police
Crime Statistics, www.aacounty.org/police/crimestatistics