Tired of paying rent and enticed by a first-time home buyer tax credit, 25-year-old Garrett Rebel began his search for a home in August, scouring the suburbs of Dallas for a house to meet his current and future needs. And he's already running out of time.

The federal tax credit for first-time buyers is "a huge motivator" for Rebel, and he may end his search if the Nov. 30 deadline arrives and he still hasn't closed on a deal. He unsuccessfully submitted an offer on one house; after going back and forth with the seller couldn't come to a price agreeable to both parties.

Reuters

"I haven't found anything that I've fallen in love with," Rebel said.

Timing is everything for many first-time buyers today. For those who purchase a home this year, the tax credit is for 10% of the purchase price, up to $8,000. Those who have owned a home in the past three years aren't eligible. Buyers also have to meet eligibility requirements regarding income; the current credit begins to phase out for singles who make more than $75,000 and couples who make more than $150,000.

Unless it is extended, this credit will expire on Nov. 30.

"We are seeing an increase in buyers wanting to get closed prior to the tax credit closing deadline," said real-estate agent Amy Downs, who represents Rebel. "We are seeing an increase in sellers wanting to get their homes on the market and closed by this deadline. I feel that if we can get the homes priced accordingly and a strong offer by mid-October, we can beat this deadline with a reputable lender working the buy side."

Beat the clock

Some real-estate agents and mortgage brokers are recommending that first-time buyers close no later than the week before Thanksgiving to ensure that no holiday-related office closings or abbreviated schedules interfere with the process. That means finalizing a purchase on or before Nov. 20.

In fact, to make sure you can take advantage of the credit, it's probably best to go under contract no later than the first or second week of October, said Jim Sahnger, mortgage planner with Palm Beach Financial Network in Florida.

The National Association of Realtors reports that it's taking about two months to complete a home sale in the current market, as lenders scrutinize borrower paperwork and issues with appraisals pop up. In short, first-time buyers probably need to select a property and make an offer by the end of this month.

But rushing to meet the deadline is a double-edged sword. The purchase of a home -- let alone your first one -- isn't a decision that should be taken lightly.

"For anyone, the decision to buy a house has to be a right one," Sahnger said. "While the $8,000 can be great to have, I wouldn't let that force you into a decision. But there is something that works and you want to take advantage of the credit, you can't afford to delay the decision."

The gamble

For buyers who don't make the deadline, there is a chance the credit will be extended. There are at least 20 bills drafted regarding the credit; one-third of them have been introduced recently, said Lucien Salvant, managing director of public affairs for NAR.

Some proposals would not only extend the first-time buyer credit into next year, but would also expand it to include all home buyers, remove income restrictions and raise the maximum amount of the credit, up to $15,000.

By including all buyers, there could be more of a ripple effect as more Americans spend money on moving vans, lawn equipment -- any items or services associated with making a move, said Jerry Howard, president and CEO of the National Association of Home Builders. NAHB and NAR have been lobbying heavily for the extension.

"The first priority is going to be to renew the $8,000 credit, but we have some good arguments for expanding it," said Jerry Giovaniello, senior vice president and chief lobbyist for NAR. He argues that the credit doesn't cost much but has a huge impact.

If you're a first-time buyer, however, waiting is a gamble.

"What you have in front of you now is a tax credit. After that, you don't know what you have," Salvant said. "This thing can go all different kinds of ways."

Effectiveness of credit

NAR estimates that about 1.8 million to 2 million first-time buyers will take advantage of the tax credit this year, and says that roughly 350,000 sales wouldn't have taken place without the credit.

But the effectiveness of the credit will eventually peter out because there are only so many potential first-time buyers, said Richard Green, director of the Lusk Center for Real Estate at the University of Southern California. He said that the credit is likely getting many first-time buyers to make their purchases six months to a year earlier than they would have anyway.

"In terms of how effective it is, I don't think it does any harm at this point. It's pushing sales forward that would have happened anyway," he said. "You're giving money to people who were going to buy anyway."

Increasing the credit amount to $15,000 and expanding it to everyone, however, could end up translating to higher home prices, he added.

Still, there is growing Capitol Hill support for the extension of the credit. Senate Majority Leader Harry Reid, D-Nev., said it needs to be extended by the end of the year, according to a spokesman from his office. And Washington Research Group, a unit of securities firm Concept Capital, recently put the chance of extension at 60%.

Yet with Congress currently focusing on other issues, and concerns about the country's rising deficit, some wonder how difficult it will be for housing to garner attention anytime soon. "All eyes are on health care," said Bruce Hahn, president of the American Homeowners Grassroots Alliance.

On the side of caution

Some home buyers, including Andrea Holland, aren't taking the chance that the credit will be extended. Holland is a 25-year-old who works for a public relations firm in San Francisco; although she has been looking for a home throughout the year, she only has been aggressively searching over the past two months.

"In the last two weeks, I've seen five different properties," she said. She has more showings scheduled for the next week, and hopes to find a fit in time.

According to Realtor.com, first-time buyers on average search 12 weeks to find a home. But there are ways for buyers to expedite their journey to closing:

• Sign up for automatic alerts for properties that fit your criteria. Many buyers start their search online, and it's possible to sign up for email alerts when properties that meet your criteria are added, Realtor.com points out. If you're working with a real-estate agent, he or she also may be able to register you for automatic alerts when homes are listed. But make sure the information you receive is fresh -- you don't have time to look at unavailable homes.

• Do all you can to ensure a smooth mortgage process. Collect pay stubs, bank statements and tax returns to prove income. Get prequalified. And while your loan is in process, don't make major purchases on credit cards -- that could delay closing, said Julie Reynolds, a spokeswoman for Realtor.com.

• Prepare for closing costs early. Get your insurance company and, if applicable, your homeowner association, to forward a cost estimate to the escrow company early, Realtor.com recommended in a news release. In many states, closing costs must be paid -- in cash -- at closing.

Amy Hoak is a MarketWatch reporter based in Chicago.

Record streak continues for pending home sales

WASHINGTON – Oct. 1, 2009 – Pending home sales have increased for seven straight months, the longest in the series of the index which began in 2001, according to the National Association of Realtors®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in August, rose 6.4 percent to 103.8 from a reading of 97.6 in July, and is 12.4 percent above August 2008 when it was 92.4. The index is at the highest level since March 2007 when it was 104.5.

Lawrence Yun, NAR chief economist, said not all contracts are turning into closed sales within an expected timeframe. “The rise in pending home sales shows buyers are returning to the market and signing contracts, but deals are not necessarily closing because of long delays related to short sales, and issues regarding complex new appraisal rules,” he said. “No doubt many first-time buyers are rushing to beat the deadline for the $8,000 tax credit, which expires at the end of next month.”

The Pending Home Sales Index in the Northeast jumped 8.2 percent to 85.3 in August and is 12.0 percent higher than August 2008. In the Midwest the index rose 3.1 percent to 90.8 in August and is 7.6 percent above a year ago. In the South, pending home sales increased 0.8 percent to an index of 104.6 and is 8.2 percent above August 2008. In the West the index surged 16.0 percent to 130.5 and is 22.3 percent above a year ago.

“There is likely to be some double counting over a span of several months because some buyers whose contracts were cancelled have found another home and signed a new contract to buy,” Yun explained. “Perhaps the real question is how many transactions are being delayed in the pipeline, and how many are being cancelled? Without historic precedents, it’s challenging to assess.”

Yun also noted that the data sample coverage for pending sales is smaller than the measurement for closed existing-home sales, so the two series will never match one for one.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said first-time buyers need to act now. “Potential first-time buyers must make a contract offer very soon to have a reasonable chance of qualifying for the tax credit,” he said. “Congress needs to extend and expand this program because it’s stimulating the economy and reducing inventory close to price stabilization points.”

McMillan said a sizable number of homebuyers already in the pipeline could be let down because of the tight deadline. “We know there is a pent-up demand because sales are below normal levels for the size of our population. The faster we absorb excess inventory, the sooner we’ll turn the corner on home prices, prevent additional families from becoming upside-down in their mortgages, and give Wall Street the confidence to extend credit to other sectors,” he said. “Each home sale pumps an additional $63,000 into the economy through related goods and services, so the benefits of extending and expanding the tax credit far outweigh the costs.”

Yun said the forecast for home sales and prices depends very much on whether a tax credit is extended. “All we can say for certain is sales will decline when the tax credit expires because we are not yet on a self-sustaining recovery path. It also raises a risk of a double-dip recession,” he said. “Extending and expanding the tax credit is the best tool in our arsenal to encourage financially qualified buyers to stimulate the economy and help reduce the budget deficit.”

© 2009 Florida Realtors®

Oktoberfest celebrations tapping the beer kegs

By Sherry Robinson, Times Staff Writer
In Print: Thursday, October 1, 2009

OktoBEERfest

Don't even think about carving a pumpkin in this heat. Dunedin Brewery has a better way to celebrate October, and we think you know what it is from the title: OktoBEERfest. The brewery, at 937 Douglas Ave. in Dunedin, is kicking off four days of beer goodness. Admission is free, but there is a charge for food and drink. Here's the schedule:

Tonight: Get the party started with Liter Release Night, in which sales begin of the brewery's liter mugs. The mugs are $30 (it comes filled; refills are $6). If a liter is too much, buy the $1 pint glass with refills for $4.50. And if you already have one of the Brewery's mugs, you can bring that in for one free refill.

Friday: Enjoy the Ultimate First "Fry day" Party with live music and the tapping of the ceremonial keg at 9 p.m.

Saturday: A street party starts at noon with the Porsche Club "Show and Shine" and live music (The Heavy Pets, 7-11 p.m. and The Trio 11 p.m.-1 a.m.).

Sunday: Rover gets a chance at the fun during BarktoBEERfest, in which your pooch gets a bath and you get a beer. You pay $7-$10 for the bath and funds go to the Dunedin Doggie Rescue. Go to dunedinbrewery.com or call (727) 736-0606 for more information.

There are several other events you can tap into:

Brews by the Bay

The Florida Aquarium's Oktoberfest celebration Saturday gives you the chance to drink like a fish, whether it be a guppy or a goliath grouper. You can sample from more than 35 craft beers from around the world, but to really get in the mood, try Jack's Pumpkin Stout. Food from bay area restaurants, including Five Guys Burgers and Fries, Square 1 Burgers and Datz Deli, also will be featured. It's from 8 p.m. to midnight at 701 Channelside Drive, Tampa. $50 advance, $60 at the door. (813) 273-4000; flaquarium.org.

Oktoberfest Street Party

The Dubliner Irish Pub will have live music, lots of beer and traditional German food. Admission is free on Friday, from 5 p.m. to 3 a.m. On Saturday it's $5, featuring music from Tribal Style and Offshore Riot. Get your lederhosen and join in the action from 1 p.m. to 3 a.m. at 12836 Henderson Road, Tampa. (813) 300-2076; www.thedublineririshpub.com.

Oktoberfest

German food, rare beers, live music, drinking contests, raffles and more. It's at 3 p.m. Friday ($5) and 11:30 a.m. Saturday ($5) and Sunday (free) at International Beer Garten, 16540 Pointe Village Drive, Lutz. (813) 749-0884; ibgtampa.com.

For more Oktoberfest fun, go to entertainment.tampabay.com for a list of upcoming events.

Sherry Robinson, Times staff writer

‘Foreclosure’ doesn’t always mean ‘good deal’ 

Buyers seeking a foreclosed property should realize that not every foreclosure is a good deal.

I Urge would-be buyers of foreclosures to have the property thoroughly inspected.
Damage isn’t always obvious. While it doesn’t take an expert to see that a toilet has been ripped out, it does require someone with knowledge to know that ripping it out damaged a pipe 20 feet down the line. There can be many issues not seen by even the best of eyes - relying on a professional is the ONLY way to gurantee you know what you are getting into. An ASHI certified inspector is the only inspector I would recommend to one of my clients.

 Activity is picking up at a number of real estate firms in Southwest Florida as well as the rest of the state.

BUSY !! That's what I'm hearing from all my Realtor peers and I am no exeption. “We’re getting a lot of calls on various types of real estate.

I’m getting a large amount of calls from people who want to retire here after reading some of the recent publicity about it being an affordable place to live once again as well as 1st time home buyers wanting to take advantage of low prices and the 8k tax credit.

Across the state, sales are up but prices are down. Sales of existing homes in Florida rose 28 percent in August, compared to August 2008.

Some 13,850 homes sold statewide last month, compared to 10,813 a year ago, according to data released by Florida Realtors, a trade association that represents Realtors.

The association also reports a 45 percent increase in sales of existing condominiums statewide, compared to last year. Sixteen of Florida’s 20 metropolitan statistical areas reported increased existing home sales in August while 18 showed increases in condo sales, the FR release said.

It’s the 12th straight month that sales have increased statewide and the 14th consecutive month that the majority of the state’s MSAs have reported increased sales.


Median sales prices of existing single-family homes decreased in August compared to last year. Statewide, the median sales price for existing homes in August was $147,400, down 22 percent from a year ago, when it was $188,500. Sales of foreclosures and other “distressed” properties continue to reduce the median price “because they generally sell at a discount relative to traditional homes.

The national median sales price for existing homes was $178,300 in July, down 14.6 percent from a year earlier, according to the National Association of Realtors.

The median sales price of an existing home in the Punta Gorda area last month was $103,300, down from $138,100, a 25 percent decrease. The sales price in the Sarasota MSA was $164,200, down 25 percent from $218,200.