The Fooks Team Blog Rhode Island Real Estate News, Views, and Information

If you look at the inventory in higher priced homes, you will see there has been a drastic decline in price over the past five years. When there is a decreasing market and sale prices are going down, the higher priced homes take a bigger loss. If a home that usually sells for $200,000 takes a 10% decrease in price, that’s a 20K reduction. For the same 10% decrease, a $400,000 home will take a 40K reduction. If you are going to be trading up to a bigger house then look at the entire picture. Realize that you may get less for the house you’re selling, but you will more than make up the difference when buying something new. There are also incentives for homeowners that have lived in their current residence for the previous 5 years. If you purchase another home and use it as your primary residence, you are entitled to a $6500 tax credit from the government. First time home buyers are out there in the market taking full advantage of the programs intended for them. Now is the time to trade up to a bigger house and use the programs intended keep real estate moving along! Striving for Excellence!

Rob Petit

This is the beginning of a great new year! 2010 is going to be extremely exciting in the real estate business! The Fooks Team is striving for excellence and has made improvements to our services that will help our clients achieve their goals. The addition of market snapshot to our services will deliver an up to the minute “snapshot” of their local market. Included in the email are all active, sold, pending and expired listings. This is an excellent way for sellers to stay current on the competition in the neighborhood. Also in the report are community and school info which is helpful to buyers when they want to know all the amenities around a property.

There are a number of incentives for both buyers and sellers that are intended to make real estate transactions possible. Short sales allow sellers who can no longer afford their mortgage the ability to avoid foreclosure. Federal tax credits have been extended until April 30, 2010 for first time homebuyers, and they can receive an $8000 credit. If you have lived in your current house for 5 years and purchase another home, either trading up or downsizing, you may be eligible for a $6500 tax credit.

It will be a very exciting year! We are taking in new listings every week and our buyer brokers are not shy taking offers! The worst they can say is NO! Let’s make this an great year for all!

Rob Petit

We wish you all a Merry Christmas and a joyous year.

It’s amazing when we see the market going up. We think about buying and selling. When we see it going down we become fearful of the loss, because we see that possibility. Don’t wise people buy when prices are low? We have low rates for money. We are trolling along at the bottom in prices. If we don’t have to sell it is a good time to reset the values on our real estate assets. It is also a good time to buy. When you buy low and sell high, that is the formula for success. When you buy high and try to sell higher that is the formula for failure. Don’t follow the crowd, do your own study. They stopped making land some years back. With the increased government regulations on what is good land that can be built on and how it can be used, there will in the not too distant future, be a housing squeeze.

With 74 million adults between the ages of 24 and 34 and looking to buy their first home, prices will move up. They stopped making land but we did not stop making people.

Just thoughts for the season.

Look to 2010 on a positive note, you control your own destiny.

May God Bless you and your families in the coming months. Have a great New Year!

The Fooks Team

For many Americans, home ownership is a key step toward achieving the American Dream. It may seem like a challenging time to enter the market; however, recently passed legislation that extends and expands the home buyer tax credit can give potential and existing homeowners just the economic break they are looking for.

On November 6, 2009, President Obama signed “The Worker, Homeownership, and Business Assistance Act of 2009,” bringing that dream one step closer to reality.

To help consumers who are considering purchasing a primary residence, the Coldwell Banker Residential Brokerage office in Warwick, Rhode Island has summarized the details of this new legislation and what it means for those thinking about entering the market:

• Eligibility: The tax credit is now available for first-time home buyers and select homeowners. A first-time home buyer is defined as an individual who has not owned a principal residence during the three year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, consumers should note that ownership of a vacation home or rental property not used as a principal residence does NOT disqualify a buyer as a first-time home buyer. A qualified homeowner is defined as someone who has owned and resided in a home for at least five consecutive years within the last eight.
• The maximum credit amount for first-time home buyers is $8,000; the maximum credit amount for current homeowners is $6,500. The federal tax credit amounts to 10 percent of the cost of the home, up to a maximum credit of $8,000 for first-time homebuyers and $6,500 for current homeowners. Under the new legislation, a tax credit may only be awarded on homes purchased for $800,000 or less.
• Single taxpayers with incomes up to $125,000 and married couples with a joint income up to $225,000 qualify for the full tax credit. Individuals whose Form 1040 filing status is “single” are eligible for the tax credit if their income is no more than $125,000. Individuals who file a joint return are eligible if they have no more than $225,000 in income.

  Single taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit. Individuals with incomes greater than $145,000 (single) and $245,000 (joint return) are not eligible for this tax credit at all.

  The credit is available for homes purchased on or after November 7, 2009 and before May 1, 2010. The federal income credit can be claimed on one’s individual or joint tax return for the purchase of any single-family home (newly-constructed or resale, single-family detached, townhomes or condominiums) between the dates of November 7, 2009 and April 30, 2010. Home purchases subject to a binding sales contract signed before May 1, 2010 will also qualify for the tax credit provided closing occurs prior to July 1, 2010.
  

• The tax credit is refundable. A refundable credit means that if the amount of income taxes a home buyer owes is less than the credit amount he / she qualifies for, the government will send a check for the difference. In essence, the credit is a dollar-for-dollar reduction in what taxpayers owe for the calendar year following the year they close on their home.
  • e.g., A first-time home buyer who qualifies for the full $8,000 tax credit and owes $5,000 in federal income taxes would owe nothing to the IRS and receive a $3,000 payment from the government. A current homeowner who qualifies for the full $6,500 tax credit and owes $5,000 would pay nothing to the IRS and receive $1,500 back from the government. If the move-up buyer is due to get a $1,000 refund, he / she would get $7,500 ($1,000 plus the $6,500 move-up buyer tax credit).
    

The tax credit is a true credit. It does not have to be repaid unless the homeowner sells or stops using the home as their principal residence within three years after the purchase. In that case, the full credit amount will be recouped on the sale.

For further understanding of how the extended tax credit differs from the previous version and how it can benefit first-time homebuyers and select homeowners, The National Association of Realtors has prepared a quick comparison chart and “basics” guide for your reference. Additional information can also be found on ColdwellBanker.com.

This is based on information available as of November 2009 and is not meant to be tax or legal advice. As with any tax law change, consumers should check with a tax advisor regarding availability, eligibility and possible timing of any tax credit.

Good question! It’s difficult for the average buyer to take advantage of this. They only give you 30 days to close. You must be ready to close fast!

In most cases, you cannot view the interior. This also leads to a high degree of risk. So, what may be perceived as a “deal”, just might not be such a “deal” after all. You always hear of the person who made a bundle of money doing this. We seldom, however, hear of the losses one might incur with these!

This doesn’t mean you shouldn’t ever venture into the foreclosure market. You might go partners with someone who has experience with foreclosures.

You must study end value after renovating or upgrading, or resale value in the current market. This will help determine the price you should pay at foreclosure.

Speculation may be an issue. But, speculators often get burned in the process.

Good sound business practices will gain you much more. Although slower, long term it is more financially rewarding.

Some good businesses practices are: good cash reserves, adequate income, risk tolerance, good work ethics, and good cash flow analyses.

With all this being analyzed, your goal of buying foreclosures can be a winner.

For more information you can contact us at www.fooksteam.com or email us at info@fooksteam.com

We have the knowledge you need to help you in this area to make sound choices.

It seems as though all the first time home buyers who have been looking for property during the past year suddenly made their decision this week to go ahead and make offers. Talk about a rush on inventory! The Fooks Team put 5 deals together just since Monday. It’s going to be an extremely busy end of the year because everyone wants to close before the $8000 tax credit expires on November 30. There are rumors that the government will extend the expiration period but don’t count on it. Even if you don’t get the rebate, how about a couple of alternatives that some sellers might take into consideration. You could send over an offer less $8000 and justify it as a seller incentive to get the deal done. Or the seller could give an $8000 concession to the buyer for all closing cost at time of the house transfers ownership.

When working with a buyer agent on the purchase of your new home, it helps to have someone that is looking out for your best interest. Most of the time buyers think they will get a better deal if they just do it themselves, but in reality, the buyer agent is working for you! Knowing your options in the transaction can prevent those last minute surprises from popping up, especially the ones that can kill the deal. Our team is designed to put your needs at the top of the list. Working together as a team, either buyer or seller, working toward the same goal! Striving for Excellence!

Rob Petit

Oh my goodness, this is an exciting time in my life!! It’s not only the red hot real estate market with new listings available everyday, the $8000 tax credit for first time homebuyers or the endless opportunities for investors; but my wife and I are expecting a new baby any day! I jump every time my cell phone rings, just waiting for the magic words from my wife “lets go”! That should be the same mind set for the hot buyers out there, ready to make an offer on the next property that fits their needs. It’s go time now if you still want to get the government tax credit. There is still enough time, but you will need to act quickly.

For the sellers ready to put their home on the market, we have found that properties in good condition and priced competitively will in some cases receive multiply offers! For every hot buyer there has to be a hot property! This excitement is contagious, everyone just be ready to go! Striving for Excellence!

Rob Petit

When people invest in stocks, the individual uses their own cash to buy into a company. Seldom do we investigate who runs the company or what their goal/s is/are. This is called passive investing. It allows someone else to direct or control our investment. Many busy people invest in this way. It is an area that can have great returns as well as losses. Seldom do people invest for cash flow - a return on your investment paid monthly or annually. The fact of the matter is to let your gains be re-invested.

True investments should spin a cash flow, not just accrue appreciation. To gain cash flow from appreciation, you must sell the asset. This will then be taxed, reducing your cash flow.

There are some true investments that take into account all three areas; positive cash flow (with no sale of asset), a small degree of appreciation, and a tax shelter.

Most individuals don’t take into account all these areas of investing. The reasons are many. “Too much work”, “Not enough time” or “Let someone else do it”, to name a few.

Investing in an active investment will allow a number of things to take place; a world where you can accumulate wealth, plus have cash flow to put in your pocket. This investment is “Real Estate”, small investment properties that most people can’t figure out. If you take the time to think it through, you will find that long term, it will provide all three sources of income: cash flow, tax shelter and capital gains.

Check it out! You will be surprised. It will definitely take work, but we at the www.fooksteam.com can help you enjoy your investment experience.

It is time to buy low, so that you can participate when things go higher.

Always look at supply and demand-long term-and you will be able to make wise financial decisions.

Bill Fooks

The seasons are changing here in New England and fall time is already here! Pretty soon we are going to be seeing frost on our car windshield in the morning! I really love this time of year though; football season has begun, the leaves are starting to change colors and the deadline to receive the $8000 tax credit is almost here! I can see there being a huge uptick in showings and activity on properties priced right during these next two months. Traditional sales are going to be the hot ticket because you don’t need any third party authorization. Hurry up and get into the game! There is still time to close on a house before the November 30^th deadline. Now, I have heard both sides of the story for reasons why they may push back the deadline date in order for more people to qualify for the tax credit, but don’t bet on it! Get ready to take action now! Let us show you the positive side of real estate! Striving for Excellence!

Rob Petit

We at the Fooks Team would like to invite you to our open houses this weekend Sunday, September 13, 2009. One of our buyer broker agents will be there to answer any questions about the property. Also they may be able to assist you in finding something else that might be of interest to you, or better fit your needs. If you are thinking about selling your property, we can do a comparative market analysis for you at no cost and no obligation. This will ensure that you get the most knowledge of today’s market place.

Click the links below to view the address and the description of each property.

“Open House” for 98 Cooper Rd, Glocester, RI

http://tponline.realty-wire.com/Users/AFD3BC94-FDFE-487D-91B9-259667D90128/%7Bb3725871-956b-414d-8a4a-a1721730315b%7D/%7Bb3725871-956b-414d-8a4a-a1721730315b%7D.pdf

“Open House” for 330 Henry Brown Rd, West Greenwich, RI

http://tponline.realty-wire.com/Users/AFD3BC94-FDFE-487D-91B9-259667D90128/%7B26a11fa1-bfa5-49bd-9397-5cbf29817df6%7D/%7B26a11fa1-bfa5-49bd-9397-5cbf29817df6%7D.pdf