For Buyers
Sellers are well represented, you should be too! Home buying requires difficult decisions. As local Chesterfield, Wildwood, Ballwin, and St. Louis experts we protect YOUR best interests from home searches to final contracts.
Click here to start your own MLS search! It's easy and free.
CLICK HERE TO SEARCH AROUND THE GLOBE
YourResidentialParnters will provide full access to ALL homes available local areas such as Chesterfield, Wildwood, Ballwin and St. Louis County; as well as those available throughout the RE/MAX Worldwide Network.
We have knowledge of all of the areas beyond real estate; like schools, neighborhoods, the local economy, retail and business.
We know St. Louis market pricing. We'll advise you if a property is overpriced. We can find bargains. We know areas that move and will advise to "win" over other buyers. We'll provide a buyer's pricing plan to purchase at or below market price. We are professionals running these numbers every day. We'll get the best value for YOU.
Negotiating is down right tough. We will help you negotiate for your best possible terms and conditions.
You should know absolutely everything about the property you are buying! You and a member of our team or I will view every home that you are interested in, together. And prior to closing we will make you fully aware of any and all inspections available to you.
Contracts are full of complicated terms and clauses. We share our real estate knowledge and experience and direct you to additional professionals as needed.
For your convenience, we also provide listings by email. We pride ourselves on repeat business and hope you'll come to understand why.Avoid Common House Buying Mistakes
First-time home buyer $8,000 Stimulus Credit
Maintenance and Safety Check List
- Assure that you see all the properties in the area that meet your criteria.
- Guide you through the entire home buying process, from finding homes to look at, to getting the best financing.
- Make sure you don't pay too much for your new home and help you avoid costly mistakes.
- Answer all of your questions about the local market area, including schools, neighborhoods, the local economy, and more.
1. Low, Low interest rates, near record low. A few years ago we had double digit rates. Bottom line, over the long term, you can buy more for less. For example, to borrow for a $200,000 on a thirty-year loan, you will pay nearly $150,000 less in interest with a six-percent loan than with a nine-percent loan.
2. Pay yourself - Don't Rent. Renting can cost as much as a monthly loan payment. Years of paying off a loan ends with home equity and a source of emergency funds, if necessary. Paying on a home is the greatest wealth-building tool you can have.
3. Freedom - Yep, I said, "freedom". It's the American way. Free to live on your own terms, your own style, control over your own life...and improve the way you live.
4. Pride - Small condo or large house; your house is the home you come home to everyday.
5. SLASH YOUR TAX BILL! First-time buyers can get up to $8,000 credit back from the Government. There are also significant tax breaks for owners in their homes for over five years.
Today, this week, this month, this YEAR...is the best time EVER, EVER...TO BUY ! Selection, selection, selection for starters! Regardless of your price range, there are plenty of houses from which to choose. You have many options. Serious sellers are priced right...and some have to sell right away and are selling way under market value. If you are house-handy and can buy a neglected home - you may be able to buy even cheaper! I just helped a family buy at 33% off list price and get them into a larger home, with more amenities and in the subdivision they wanted because they bought a home in disrepair and plan to fix it. Look at it this way, they were able to buy 33% more of a home than they can currently afford today in buying low and spending money over five years to create their dream home over time.
Before You Start Looking For Your New Home:
- Check your credit rating. Straighten out any errors before its too late.
- Determine a comfortable monthly budget for your new purchase, including down payment and monthly payment.
- Find a loan programthat meets your needs and get pre-qualified (preferably pre-approved).
- Choose a REALTOR® that you trust and who understands your needs.
- Determine what neighborhood best matches your needs.
- Identify important features you need your new home to have.
CLICK REMAX.COM for ALL LISTED HOMES
Avoid These Common Mistakes: Whether you're ready to buy a new home or you're moving up in the world, the same pitfalls exist. So, the wise buyer will want to avoid these potentially dangerous and expensive mistakes made by many home buyers:
Running before walking - Rushing off to look at homes before doing up-front preparation. Know your buying power as well as debt and potential earning ability. Look at homes on line. Review your finances.
Over-buying- Being "house poor" ties you to changes in personal circumstances and the national economy which could limit or destroy your financial health.
Choosing a bad real estate agent - Choose a buyer's agent who understands your needs and financial limitations. Seek references. Determine their commitment to YOU. Verify their experience in the area where you want to live and the price range you're looking for.
Not comparing mortgage types - Take the time to compare several options to get the best plan for your financial situation.
Waiting for the "perfect" home - While the almost perfect slips away. Nothing is perfect...thinking that looking long enough for a home with everything you want will keep you in the same place forever or settle because you run out of time:
- You reject homes only to eventually purchase one with fewer of your requirements because you are worn out!
- While you wait for the "perfect" home, rising housing prices and mortgage rates add to the purchase cost.
Thinking the seller covers all costs - Some buyers incorrectly think that sellers pay all real estate commissions (read your Buyer's Agreement closely) as well as other inspection costs and closing expenses.
Neglecting inspections, audits and appraisals - Buyers often underestimate the importance of independent property inspections, environmental audits and separate property appraisals as a condition of purchase. Money well spent now can keep you from buying a lemon!
Not going back to check the neighborhood - You house hunted on weekends, but what happens on weekdays or after dark? Is the "convenient to town" house on a thoroughfare packed with cars during commute time? Learn the neighborhood before you buy.
Forgetting to consider resale- What's down the street? What's behind your backyard? When buying, it's easy to forget what it will be like to sell your home later on. Biggest killers: power lines, busy streets. Small back yards. Unkempt neighboring homes. AND...Buying the most expensive home on the block, your neighbors' lower home values could affect yours. Sidestep homes costing 50 percent more than neighboring dwellings. This is especially true with rehabs...many are over-built for the neighborhood.Forgetting about closing costs - A mortgage lender should provide an estimate of costs, including: points, escrow fees, title and homeowners insurance, legal costs, property taxes, plus deed recording and notary fees.
Trying to make a shrewd investment - Buy based on what fits your family. Don't try to guess what will happen to the market.
Overlooking an inferior floor plan for an attractive exterior - No matter how attractive the exterior, you need a livable home.
Not checking out the builder's reputation on a new home - Talk to three or four people who live in the builder's homes and get their feedback.
Not getting what you want because of impatience - Give yourself time. Impatient decisions can lead to mistakes.
Not buying at all - If you can afford a home and don't buy one, you lose the benefit of tax deductions, building home equity and the appreciation in value.
- Lender fees include charges for loan processing, underwriting, preparation and establishing an escrow account.
- Third-party fees include charges for insurance, title search, and other inspections such as termites.
- Government fees include deed recording and state & local mortgage taxes.
- Escrow and interest feesinclude homeowner's insurance, loan interest, real estate taxes, and occasionally private mortgage insurance.
Find out how much your closing costs could be.
For additional information call or email us for help, or to have your questions answered. There are no dumb questions! Fill out this form and we'll get right back to you...
The First Time Homebuyer Tax CreditIn 2008, Congress enacted a $7,500 tax credit designed to be an incentive for first-time homebuyers to purchase a home. For 2009, Congress has increased the credit to $8000 and made several additional improvements. This revised $8000 tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009.
- What’s this new homebuyer tax incentive for 2009? The 2008 $7500 repayable credit is increased to $8000 and the repayment feature is eliminated for 2009 purchasers. Any home that is purchased for $80,000 or more qualifies for the full $8000 amount. If the house costs less than $80,000, the credit will be 10% of the cost. Download IRS Tax Form 5405if you are eligible for the $8,000 First-Time Homebuyer Credit.
- Who is eligible? Only first-time homebuyers are eligible. A person is considered a first-time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.
- How does a tax credit work? Every dollar of a tax credit reduces income taxes by a dollar. Credits are claimed on an individual’s income tax return. Thus, a qualified purchaser would figure out all the income items and exemptions and make all the calculations required to figure out his/her total tax due. Then, once the total tax owed has been computed, tax credits are applied to reduce the total tax bill. So, if before taking any credits on a tax return, a person has a total tax liability of $9500, an $8000 credit would wipe out all but $1500 of the tax due.
- Is there an income restriction? Yes. Individuals filing Form 1040 as Single (or Head of Household) are eligible for the credit if their income is no more than $75,000. Married couples who file a Joint return may have income of no more than $150,000.
- So what happens if the purchaser is eligible for an $8000 credit but his/her income tax liability is only $6000? This tax credit is what is called a “refundable” credit. Thus, if the eligible purchaser’s total tax liability was $6000, the IRS would send the purchaser a check for $2000. The refundable amount is the difference between the $8000 credit amount and the amount of tax liability.
- Do individuals with incomes higher than these limits lose all the benefit? The credit phases-out between $75,000 - $95,000 for singles and $150,000 - $170,000 for married filing joint. The closer a buyer comes to the maximum phase-out amount, the smaller the credit will be. The law provides a formula to gradually withdraw the credit.
- What’s the definition of “principal residence?” Generally, a principal residence is the home where an individual spends most of his/her time (generally defined as more than 50%). It is also defined as “owner-occupied” housing. The term includes single-family detached housing, condos or co-ops, townhouses or any similar type of new or existing dwelling.
- Do I have to repay the tax credit? There is no repayment for 2009 tax credits. However, if the home is sold within three years, the credit must be recaptured upon sale.
- Are there restrictions related to the financing on the property? Congress eliminated the financing restriction that applied in 2008 that disallowed the credit if the financing was obtained by means of tax exempt mortgage revenue bonds.
- Do 2008 purchasers still have to repay their tax credit? The $7500 credit in 2008 was more like an interest-free loan. All eligible purchasers who claimed the 2008 credit will still be required to repay it over 15 years, starting with their 2010 tax return.
- Can I use the credit amount as part of my downpayment? Congress tried hard to devise a mechanism that would make the funds available for closing costs but found that pre-funding would require cumbersome processes that would, in effect, bring the IRS into the purchase and settlement phase of the transaction.
- Is there a way to get any cash flow benefits before I file my tax return? Any first-time homebuyers who believe they are eligible for all or part of the credit can modify their income tax withholding or adjust their quarterly estimated tax payments. Individuals subject to withholding would get an IRS Form W-4 from their employer. Source: National Association of Realtors®.
