• First time home buyers must purchase a home between November 7, 2009 and April 30, 2010 (closed by July 1, 2010). To qualify as a "first time home buyer," the purchaser or his/her spouse may not have owned a residence during the 3 years prior to the purchase.
• First time home buyers receive the lessor of an $8,000 tax credit or 10% of the home purchase price can be applied to 2009 or 2010 taxes.
• The home must be your principal residence. 
• For current homeowners who purchased a home in the same time frame, to qualify for the tax credit, the home being sold or vacated must have been their principal residence for 5 consecutive years within the last 8 years. The new home being must be occupied as your principal residence for 3 years.
• The current homeowner tax credit is $6,500 or 10% of the sales price, whichever is less. 
• For both first time buyers and current homeowners to receive the maximum credit, single buyers can earn up to $125,000 and married couples up to $225,000. Those with higher earnings receive less credit. Singles earning over $145,000 and married couples earning over $245,000 are not eligible for a tax credit.
• Under this legislation, the cost of a home cannot exceed $800,000.

Consult a CPA or your tax professional for full details.

How do I go about selecting the best Real Estate agent for me?
Since your best interests are served by educating yourself, it is always a good idea to interview two or three agents to find one that you trust, has the expertise and service orientation you want and is one that you feel comfortable working with. In general, an agent who is also a broker is usually more committed to real estate "know how" and has more real estate education. Click here for the 10 important questions to ask when selecting your realtor. 

How do I develop a plan-of-action for buying?
A plan-of-action is built upon the data/information you have gathered and goal setting.  Before you start become prequalified with a lender. Then search the MLS internet home listing within your target neighborhood(s) using your criteria:  price, beds/baths, style (Edwardian, modern, etc.), updates, etc.  Visit homes on open houses.  Think about when you want to own your home (select an exact date); the neighborhood you selected; the price you want to pay.  Share your information with your agent so the agent can focus on your goal. 

Why do I need a letter of loan prequalification?
Most owners will not want to withhold marketing their home while you apply for a loan. Multiple prequalification applications are not recommended because each application lowers your FICO score by about 2-5 points.  So, ask the lender for the longest "lock in" interest period they can give you.

What is the best way to work with a Real Estate agent?
With your plan-of-action in hand, sign a "Buyer's Agreement*" with your agent.  You are then ready to take charge.  Your agent will work while you are on your job.  The agent will preview at least 8-10 homes, select the best 3-4, and then make arrangements with owners and their listing agents to show you the homes.  Pay close attention to your reaction to whatever you see in homes.  Here's where your intuition speaks.  Share your likes, dislikes, and ambiguities with your agent openly and frankly.

*A"Buyer's Agreement" is in your best interests because the Agent is secured and motivated to work hard for you.  Can you fire the agent? Yes! You will sign a release from the agreement.  However, most buyers love the "Buyer’s Agreement.”  Why?  Because you will meet lots of agents and have friends who will offer you their "best friend" agent to call. It's easier to politely decline their help by saying you’ve already signed an agreement with an agent.  Piercesmith.com buyers often carry our business card to give to overly persistent agents.

How do I receive a lower price than listed price?
Generally, listed home prices can often be negotiated lower based on a number of factors.  To begin, we’ll look at how many days the property’s been on the market (DOM), when and for what price it was purchased by the existing owner and were all building permits secured for any structural alterations made.  We’ll also make a pre-offer inspection for any visible defects or potential problems with the property. With this information in hand we can determine the feasibility of negotiating a lower price. At Piercesmith.com Real Estate, we believe it is the agent’s fiduciary responsibility to the Buyer to recommend the lowest possible price that will secure the property.

If you have a specific area of interest in mind, you can click here for detailed information on neighborhood schools, crime statistics, homes sold, sales history, etc.  

How do I know if the home is right for me before I make an offer?
At Piercemsith.com Real Estate, when we begin our collaboration as your buying agent, we prepare a comprehensive review of your personal purchase situation with our exclusive PRE-TEC© data analysis report. This proprietary analytical tool incorporates such information as  your preferred timing, location(s) of interest, neighborhood amenities, what properties are available, your financial goals, whether you’re buying a residence or investment property, trends in pricing, current mortgage rates, and much more.  The home you ultimately select for a purchase offer will have been matched perfectly with your personal goals. And just as important, when you visit what will become "YOUR NEW HOME," your intuition is usually shouting loud and clear.  You know this is the home you have always wanted.  Make your best offer thoughtfully, confidently and decisively.

How do I know if the offer I make is right for me?
Piercesmith.com Real Estate keeps your best financial interests at the forefront right from the start. Before you make an offer we will prepare a Comparative Market Analysis (CMA) showing the sold properties that fit your target home criteria in your selected neighborhood.  Then to help you feel confident about the offer you make, we provide a free "OFFER STRATEGY" matrix with suggestions on various offer scenarios. You can complete a series of mock offers based upon the listing price and alternative conditions. Working with this matrix will give you time to practice thinking through an offer and arrive at the choice that best fits your personal purchase strategy.

What does it mean if a sale is "as is”?
I believe only a short sale (a property sold for less than the seller owes on it), foreclosure, or some probate sales should be sold "as is." Every other home is known by the owner. That is, the owner must complete a disclosure contract stating all known material defects.  However, in the case of short sales and foreclosures, the lender has NO knowledge of the home.  Furthermore, each agent (seller's and buyer's) must complete a disclosure contract based upon each agent's inspection.  My recommendation is to never buy a home without a professional contractor's inspection.  A list of recommended ASHI (American Association of Home Inspectors)certified inspectors will be provided.

How much do I pay in closing costs?
Your agent can estimate the closing for you. The escrow officer will give you an official amount later in escrow.