Looking for the Tax Credit? You Need to File Paper.

As recently reported by Realty Times, electronic filing will not be allowed for homeowners wanting to file for the home buyer tax credit. The new filing rules are an effort to ward off a repeat of 90,000 taxpayers who fraudulently claimed the credit, according to the U.S. Treasury. All taxpayers (first time and repeat buyers) seeking a credit or refund, must use the new IRS Form 5405 and submit it with additional closing documents as listed on the Form 5405. If you need help with filing for the credit, call me as I have an outstanding accountant who can help you out.

More and More People Getting Loan Modifications

RealTrends reports that more than 116,000 homeowners now have permanent loan modifications, nearly doubling the number from December, according to the Administration's Home Affordable Modification Program (HAMP). An additional 76,000 permanent modifications have been offered, and are waiting only for the borrower's signature. In total, Over 1 million homeowners have started trial modifications and nearly 1.3 million offers for trial modifications have been extended to homeowners.

If you are in trouble with your mortgage call your loan servicer. They want to help you keep your home! As always, if you have any questions do not hesitate to call me right away.

NAR Releases 4th Quarter Stats

This week NAR released its fourth quarter 2009 housing stats revealing some solid and very positive results including:

·Home sales posted strong gains in the fourth quarter and prices rose in nearly 45% of U.S. metropolitan areas compared with a year earlier, more evidence of an improving climate in housing.

·Bolstered by low interest rates and a first-time home buyer tax credit, existing-home sales rocketed 27.2% from the fourth quarter of 2008 to a seasonally adjusted annual rate of 6.03.

·The national median price of an existing single-family home was $172,900 or 4.1% below the median price in fourth quarter 2008. That was the smallest price decline in more than two years.

·Prices rose in 67 out of 151 metro areas in the fourth quarter compared with a year earlier.

·Sixteen areas had double-digit increases last quarter.

Homes are moving fast!

If you ever had any doubt whether the tax credit for home purchasers (both first time homebuyers and repeat buyers alike) is having any affect on the market, now you have your answer. Showings in Northern Colorado are currently at April and May numbers, meaning the spring selling season has come early this year. Buyers are out in droves, especially in the sub $300,000 price ranges, looking to take advantage of every dollar than Uncle Sam is offering. If you have any questions on the tax credit or whether you qualify, contact me and I will send you a very informative FAQ.

Remodeling? Here's the Best Bang for Your Buck.

REALTOR Magazine® has published it's annual Remodeling Cost vs. Value Report, and it has some great news! Realtors indicate that nationwide, small-scale exterior projects are the most profitable at resale! Talk about bang for your buck!· On a national level, eight out of the top 10 projects in terms of costs recouped were exterior replacement projects that cost less than $14,000.
Here are some highlights:

· Certain types of door and siding replacements, as well as wood deck additions all returned more than 80% of project costs upon resale.

· On a national level, the project with the biggest improvement from 2008 was the attic bedroom addition, recouping 83.1% of remodeling costs compared to 73.8% in 2008. The only other interior project that landed in the top 10 was a minor kitchen remodel with 78.3% costs recouped.

· Similar to last year's report, the least profitable remodeling projects in terms of resale value were home office remodels and sunroom additions, returning only 48.1%and 50.7% of project costs.

For a complete report with all of the remodels that were looked at, give me a call or shoot me an email.