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Bremerton First Time Home Buyer $8,000 Tax Credit | Time is Running OUT

Jo Soss-Olson — Thu, 11 Jun 2009 23:07:23 +0000

Are you thinking of buying a home in the Bremerton area of Kitsap County? Are you a first time home buyer or do you qualify as one under the IRS guidelines? If you are, you might want to start thinking about putting both feet into the Bremerton housing market. If you listen to some of the local multiple association directors the bottom just might be here and we just might be on the up side.

It is still a buyers market in Bremerton with approximately 7.5 months of inventory but with the absortpion rate I use 5-6 months is a normal market we are getting to normal! I am a fan of the normal market. Of course there are home in Bremerton (all addresses with the “city” listed as Bremerton) that are a seller’s market. There have been some “hot” properties out there this spring - some with multiple offers and bidding “wars”. Really! You don’t often hear of that in the mainstream media.

Take a look at this article. US News and World Report released this pass week about the Bremerton/Silverdale housing market. US News and World Report names Bremerton/Silverdale number 1 in the top 10 housing markets for the next 10 years.

I have several first time home buyers at the moment and we have all been talking about the new First-Time Home buyer Credit. This is the new 2009 First-Time Home buyer Credit. The $8,000. tax credit that is a credit and NOT a loan. This credit DOES NOT have to be paid back and as everything there are exceptions. The exceptions are…

Must use the home as a principle residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply. Ask your tax adviser or read Form 5405

So back to the “Who is Eligible?”. You can claim the tax credit if you are a first-time home buyer. Have you ever purchased a home? If the answer is YES you STILL MIGHT BE ELIGIBLE. The first-time home buyer must be able to state you did not own any other home during the past 3 year period that would end on the date of your new purchase. So see you may be a first-time home buyer even if you have owned a home. It is home-buying “do-overs”!

You must have purchased your home after January 1, 2009 and before December 31, 2009 to claim the tax credit.
Sometimes it is easier to decide eligibility if you know who CANNOT clam the credit
Your modified adjusted gross income is over $95,000 or $170,000 if married filing a joint return.
You are a nonresident alien.
You acquired your home by gift or you inherited it.
You purchased your home from a person you are related to.

There are other exceptions but for your local Kitsap area they don’t mean much. You can find them on Form 5405.

Looks like there will be lots of first-time home buyers out this spring which in turn will help move that “move-up” market in Kitsap County. Of course you will want to verify all of this with a tax consultant or go to the IRS web site and look for IRS Form 5405.

I have some ideas about this credit for local buyers so if you are interested please send me an email for more discussion!

Several of my first time home buyers have asked me the question

If I buy my home now do I have to wait till I file my 2009 taxes or can I have it now?

So the question is, “Can I apply the tax credit against my 2008 tax return?” “What if I have already filed my 2008 taxes?”

Doing some research I have found the answer is IRS Form 5405. Check out Part I, section C.

You can choose to claim the credit on your 2008 Form 1040 for a main home purchased after December 31, 2008 and before December 1, 2009. If you make this choice, check the box.

If you have already filed your 2008 taxes you would have to file an amended return. See the IRS web site and look for form 1040-X and form 843. If you don’t understand the directions then consult a tax attorney or your CPA.

Similar Posts

Check out my new blog that will only address the Washington State Tax Credit Advance Loan Program. www.TaxCreditAdvanceLoanProgram.com - be sure to bookmark it so that you can access it for more information as it becomes available with the rapid changing $8,000 First Time Home Buyer Tax Credit Program.

Kitsap County Real Estate | Absorption Rate

Jo Soss-Olson — Mon, 08 Jun 2009 06:57:04 +0000

I have been thinking about absorption rates lately with all the talk of how the area housing market is improving. The NWMLS (Northwest Multiple Listing Service) releases data every few weeks and of course monthly market data reports. If you want to read more from the NWMLS you can bookmark the site that the public has access to. Northwest REporter.

So after reading the latest release from the NWMLS I thought I would do some absorption rate statistics. Sometimes I get really frustrated with stats because they are well - crap in crap out type of information. Without correct data what do they mean? For as many years as I have been a member of the NWMLS and that spans back to 1994 the statistics are an estimate at best.

If you know the flap over Zillow “zestimates” well I don’t think we should be too critical when our own association has a tough time policing itself when it comes to being accurate. So I put these figures out there for you with the understanding that accuracies are “subject to”.

Now for the disclosure that I am required to by my NWMLS rules and regulations. The statement is true for this article. I have compiled these statistics on my own, no copy and paste of the NWMLS’s data.

“Statistics not compiled or published by NWMLS.” Equal Opportunity Housing All information deemed reliable, but not guaranteed”

This data is for all of Kitsap County, for all residential properties (condominiums excluded), mobile homes on land and townhomes/townhouses included. Of course this is all subject to the listing agents input.

I do know that these figures are not perfect - I know of several homes that sold in March, April and May that are still showing “pending” or “pending inspection” as I have pointed out all depends on the listing agents input or lack there of.

Technically any home that is available for sell would be any home that is listed yet not closed. Here in the NWMLS area we have several “pending” possibilities.

Pending BU Requested (79)
Pending Feasibility (5)
Pending Inspection (171)
Pending (339)

I have calculated these pending homes as not available - as in not actively available. I don’t show pending listings of any kind unless there is a short-sale property that my buyers are really, really and I mean really interested in. With so much inventory why set a buyer up for heartache? This past April I had buyers that went into a back-up type situation on a pending feasibility property and all that did was delay their home buying process. Finally, we chose another home that will close soon.

Kitsap Coutny Active homes for sale as of today - 1816

Last month in Kitsap County there were 187 homes that sold. These homes closed and property ownership transferred through the Kitsap County Courthouse as recorded and complete. That would mean that the absorption rate is 9.71 months of inventory. Please see the definition I use below on absorption rates.

The Definition of Absorption Rates:

Number of weeks it takes to sell the current inventory at the present rate of sales. Using absorption rates can help you define markets. My definition breaks down like this…

Normal Market - Between 5 and 6 months of inventory.

Seller’s Market - Between 1 and 4 months of inventory.

Buyer’s Market - 7 months and higher.

Now remember that absorption rates just track trends and isn’t an exact science!

What do these numbers mean? Is it a good time to buy? Is it a good time to sell. It all depends on your individual situation. I would rather buy in a buyers market and I would rather sell in a buyers market if I have to buy another home with the proceeds. I am a fan of the NORMAL market - everyone can feel more comfortable and real estate transactions are not as stressful.

If you would like to find out the value of your home please feel free to contact me via phone or email. I would be more than happy to supply you with a FREE Market Analysis.

If you would like to purchase a home in the Kitsap County Real Estate Area please give me a call or contact me via email. We can discuss your future plans and I can set you up on an email campaign to receive the hot new listings quicker than YOU can find them.

Bremerton Real Estate | May Homes SOLD

Jo Soss-Olson — Mon, 08 Jun 2009 06:52:10 +0000

During the month of May there were 63 homes that sold in Bremerton. (That is 2 more sold homes than in April.) These Bremerton homes actually had a transfer of home ownership. Contracts complete and Lender funds available the home buyer and seller signed all of their documents as escrow prepared the closing packages. Once all the I’s were dotted and the T’s crossed there where deeds recorded at the Kitsap County courthouse that transferred the property into the new home owner’s name!

If you want to learn more about how we transfer property in Washington State a really great site to visit is the Escrow Association of Washington site. There you can find definitions and explanations of the home buying process for Bremerton Washington.

Let’s look at those 63 Bremerton homes -

Average List Price

$236,959 (up $16,350 from April)
$136 per sq ft

Average Sold Price

$230,789 (up $16,687 from April)
$128 per sq ft

The average sq ft of these 63 Bremerton homes was 1796 sq ft. These homes spent an average of 135 days on the market (DOM). (13 days less than April)

The list to sale ratio for these homes was 97.34 percent. What that meas is that buyers offered 97.34% of what the seller requested.

Not a bad time to purchase a home in Bremerton, Washington. In fact it is a great time if you are a 1st time home buyer and qualify for the $8,000 tax credit - CREDIT! NOT loan! Read the information I have written about the program here

Check out some of Kitsap County Real Estate Market Data here - Kitsap County Real Estate Market Data FYI

If you would like to find out the value of your home please feel free to contact me via phone or email. I would be more than happy to supply you with a FREE Market Analysis.

Bremerton Real Estate 2009 Market Reports

“Statistics not compiled or published by NWMLS.” Equal Opportunity Housing All information deemed reliable, but not guaranteed

Silverdale Real Estate | April Homes SOLD

Jo Soss-Olson — Sat, 06 Jun 2009 21:39:49 +0000

During the month of April there were 10 homes that sold in Silverdale. These Silverdale homes actually had a transfer of home ownership. Contracts complete and Lender funds available the home buyer and seller signed all of their documents as escrow prepared the closing packages. Once all the I’s were dotted and the T’s crossed there where deeds recorded at the Kitsap County courthouse that transferred the property into the new home owner’s name!

Let’s look at those 10 Silverdale homes -

Average List Price

$264,235 ($12,135 higher than March)
$163per sq ft

Average Sold Price

$257,903 ($18,886 higher than in March
$160 per sq ft

The average sq ft of these Silverdale homes was 1794 sq ft. These homes spent an average of 210 (67 days more than the homes sold in March) days on the market (DOM).

The list to sale ratio for these homes was 97.60 percent. What that meas is that buyers offered 97.60% of what the seller requested.

Not a bad time to purchase a home in Silverdale, Washington. In fact it is a great time if you are a 1st time home buyer and qualify for the $8,000 tax credit - CREDIT! NOT loan! Read the information I have written about the program here

If you would like to find out the value of your home please feel free to contact me via phone or email. I would be more than happy to supply you with a FREE Market Analysis.

Silverdale Real Estate 2009 Market Reports

“Statistics not compiled or published by NWMLS.” Equal Opportunity Housing All information deemed reliable, but not guaranteed

US News & World Report Names Bremerton-Silverdale #1 in The Top 10 Housing Markets for the Next 10 Years

Jo Soss-Olson — Sat, 06 Jun 2009 21:27:27 +0000

I love Google Alerts! It is amazing what you can find out by setting up your key phrases targeted to your market area. This evening this US News & World Report article came through. This is an exciting piece of news. Of course it doesn’t surprise me, we are an unique area.

We are insulated somewhat from the tough economic times because of the huge military presence. We have two large Navy bases here - Naval Base Kitsap Bremerton and Naval Base Kitsap Bangor, along with Puget Sound Naval Shipyard (PSNS) and Naval Hospital Bremerton. These are steady paychecks that help our local economy. Read the article for more facts on our local economy and real estate market. If you are looking to invest in real estate Bremerton - Silverdale just might be a place to look at.

The Top 10 Housing Markets for the Next 10 Years

Home prices in these 10 cities will appreciate handsomely over the next decade

By Luke Mullins

Posted June 4, 2009

Bremerton-Silverdale, Wash.: 5.22 percent
Glens Falls, N.Y: 4.71 percent
Fort Collins-Loveland, Colo.: 4.06 percent
Corvallis, Ore.: 3.95 percent
Anchorage, Alaska: 3.8 percent
Duluth, Minn.: 3.74 percent
Sandusky, Ohio: 3.66 percent
Santa Fe, N.M: 3.57 percent
Pittsfield, Mass.: 3.51 percent
Decatur, Ill.: 3.44 percent

Port Orchard Real Estate | May Homes SOLD

Jo Soss-Olson — Sat, 06 Jun 2009 04:42:07 +0000

During the month of May there were 48 homes that sold in Port Orchard ( 10 less than in April). These Port Orchard homes actually had a transfer of home ownership. Contracts complete and Lender funds available the home buyer and seller signed all of their documents as escrow prepared the closing packages. Once all the I’s were dotted and the T’s crossed there where deeds recorded at the Kitsap County courthouse that transferred the property into the new home owner’s name!

Let’s look at those 48 Port Orchard homes -

Average List Price

$228,948 (down $35,320 from April)
$142 per sq ft

Average Sold Price

$222,588 (down $29,442 from April)
$157 per sq ft

The average sq ft of these 58 Port Orchard homes was 1785 sq ft. These homes spent an average of 171 days on the market (DOM). (up 30 days from March)

The list to sale ratio for these homes was 95.36 percent. What that meas is that buyers offered 95.36% of what the seller requested. (lower than March)

Not a bad time to purchase a home in Port Orchard, Washington. In fact it is a great time if you are a 1st time home buyer and qualify for the $8,000 tax credit - CREDIT! NOT loan! Read the information I have written about the program here

have written about the program here

If you would like to find out the value of your home please feel free to contact me via phone or email. I would be more than happy to supply you with a FREE Market Analysis.

Port Orchard Real Estate 2009 Market Reports

“Statistics not compiled or published by NWMLS.” Equal Opportunity Housing All information deemed reliable, but not guaranteed

VA Home Loan | Kitsap County

Jo Soss-Olson — Wed, 27 May 2009 16:42:02 +0000

I am sure you have heard all the doom and gloom from a million different news reports concerning the lending industry mess, how several loan programs once available are no longer, how zero down loan programs are almost non-existent and how hard it is right now if you have little to zero money available for a down payment.

But wait; are you a military member or a veteran? If you are the news isn’t as bad. With your VA Guaranteed Home Loan benefit you can still obtain a loan with no down payment and a fixed interest rate that is as good as or better than a conventional mortgage rate. This is the time for a VA Loan! What a great benefit to those of you that have served our country!

What is a VA Guaranteed Home Loan?

Many have the misconception that the military is the organization loaning the money. No they are not. Your VA Guaranteed Home Loan will be made by a private lender, such as your bank or a mortgage company of your choosing that has VA lending approval. The guaranty means the lender is protected if you fail to repay the loan. This is also why you will not have to pay private mortgage insurance (PMI) for a zero down loan (if you could find one). Normally a lender would require a down payment and/or PMI to obtain a loan, since the VA Home Loan has a guaranty which replaces these you will be able to obtain your loan without, but with the same financial terms as if you had made a down payment. The risk is removed for the lender when the VA gives them that guaranty.

Of course you still must meet income and debt requirements, your credit reports will be used and if there are items in your history that are derogatory you can be denied a loan even though you have your Certificate of Eligibility. The VA cannot demand a lender make a loan to you that would violate their lending practices. Lenders also must comply with the VA rules and policies when it comes to income and credit standards. Just having the benefit is not enough, you must be credit worthy. I will be writing an article about your credit - good, bad or ugly in a few days. You don’t have to have that perfect fico score, so check back.

If a lender is unwilling to approve you for a loan the only thing the VA can do is suggest that you try other lenders.

It could just be the perfect time for you to purchase a home with your VA benefits. Where else can a person get a 100% home loan these days?!

Posts of Interest

First Time Homebuyer

Individual Area Real Estate Market Stats

Kitsap Area Real Estate Market Stats

Kitsap Real Estate FYI

Naval Base Kitsap | As a Military Member do you Purchase a Home in this Market Climate?

Jo Soss-Olson — Wed, 20 May 2009 21:09:33 +0000

Times have changed for all home buyers. The days of being able to receive very substantial market equity in a three year time span has all but disappeared in most areas. In the Kitsap County area we have been lucky that our market although slow and undergoing a huge price correction we haven’t been as hard hit as areas like Florida or California. However, we hear daily the horror stories of the housing market which has most active duty military wondering if now is the right time to buy.

Over the last 5 years we saw the active duty member feel comfortable purchasing even with a PCS due in a short three years because of the escalation of value in several markets. With that now gone what does an active duty member do? The decision to purchase is tougher today than it was.

But, with education, pro/con honest conversation and the help of several real estate experts you should be able to make the right decision.

So as a military member do you purchase a home?

It is a very complicated process which needs some investigation and education before making that decision. You should ask yourself some questions like these at the minimum.

These might be considered some of the “con” type questions.

Do I have upfront money to buy a home?
Can I get financing?
Is my tour of duty going to be longer than 3 years before the next PCS?
Will I have the opportunity to do another tour here or will I have an opportunity to come back?
If I had to be a long distant landlord would I have the time or resources?
Could I afford a property manager?
What if I had to pay the mortgage for 2-3 months while the home is waiting for new renters?

These might be considered some of the “pro” type statements.

Being VA eligible military members can still receive a ZERO down home loan.
First time home buyers can receive a $8,000 credit from the Federal Government
Under most circumstances the interest on a home loan is tax deductible (contact a CPA)
Pride of home ownership is amazing.
Building equity prior to retirement.

Do you own your home? Are you afraid of having to sell in 3, 4 or 5 years? If you are smart and do the right things then home ownership for a military member should not be scary!!!!

2009 NAVAL BASE KITSAP | BREMERTON | BANGOR | PSNS | NAVAL HOSPITAL BREMERTON

Posts of Interest

First Time Homebuyer

Naval Base Kitsap

Individual Area Real Estate Market Stats

Kitsap Area Real Estate Market Stats

Kitsap Real Estate FYI

SEARCH SOME LOCAL KITSAP COUNTY HOMES

Bremerton Homes Under $200,000 | Bremerton Buyer’s Market

Jo Soss-Olson — Mon, 18 May 2009 22:30:22 +0000

Check out some of Kitsap County Real Estate Market Data here - Kitsap County Real Estate Market Data FYI

If you would like to find out the value of your home please feel free to contact me via phone or email. I would be more than happy to supply you with a FREE Market Analysis.

Bremerton Real Estate 2009 Market Reports

Port Orchard Real Estate | April Homes SOLD

Jo Soss-Olson — Mon, 18 May 2009 22:21:56 +0000

During the month of April there were 58 homes that sold in Port Orchard ( 6 more than in March). These Port Orchard homes actually had a transfer of home ownership. Contracts complete and Lender funds available the home buyer and seller signed all of their documents as escrow prepared the closing packages. Once all the I’s were dotted and the T’s crossed there where deeds recorded at the Kitsap County courthouse that transferred the property into the new home owner’s name!

Let’s look at those 58 Port Orchard homes -

Average List Price

$264,268 (up from March)
$167 per sq ft

Average Sold Price

$252,030 (up from March)
$157 per sq ft

The average sq ft of these 58 Port Orchard homes was 1785 sq ft. These homes spent an average of 171 days on the market (DOM). (up 30 days from March)

The list to sale ratio for these homes was 95.36 percent. What that meas is that buyers offered 95.36% of what the seller requested. (lower than March)

have written about the program here

If you would like to find out the value of your home please feel free to contact me via phone or email. I would be more than happy to supply you with a FREE Market Analysis.

Port Orchard Real Estate 2009 Market Reports

“Statistics not compiled or published by NWMLS.” Equal Opportunity Housing All information deemed reliable, but not guaranteed