Congress Passes Homebuyer Tax Credit

The House of Representatives voted overwhelmingly this afternoon to pass legislation containing an extension and expansion of the homebuyer tax credit, completing Congressional action and sending the tax credit to President Obama for his signature, possibly as early as tomorrow.

The $8,000 homebuyer tax credit for first-time buyers, due to expire in 25 days, will be extended through April 30 of next year and buyers will have an additional two months, until the end of June, to close.  First-time buyers who are in process of making a purchase will no longer need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline. The new legislation increases the income limit for couples with income up to $225,000, a nearly $55,000 increase above the level in existing law.

For the first time, the new legislation makes buyers who already own a home eligible for a credit.  A $6,500 maximum credit will be available to existing homeowners who have lived in their current residence for five of the prior eight years.  The legislation limits eligibility for the existing homeowner credit  to homes worth $800,000 or less.

How to Select the Best Real Estate Agent for YOU.

Once you have decided to list or buy a home, the next step is to find a real estate agent. The process of choosing a real estate agent can be overwhelming and confusing, but read over the following tips and you’ll be ahead of the game!!

Have Choices – Word of mouth and personal references can be an easy and efficient way in finding out who is a good agent in the area, but this may not always be the best way to choose an agent. Just because your neighbor’s house sold in 1 day, doesn’t necessarily mean that agent is right for you. Meeting different agents and conducting interviews is a great way to decide which agent would best suit your needs!

Interviewing Agents –  When making an investment as important as a home purchase, you should get more than one opinion. Interviewing potential agents can be a great way for you to figure out who would work best with you in buying or selling a home. Agents should want the chance to show you how they would work for you and what they would do to buy or sell a home. Don’t be afraid to ask agents how well they know the area and the markets of that area. An agent who is more knowledgeable on the area will be able to market your home better to prospective buyers.

Choosing an Agent – After interviewing several agents, it is time to make a decision on which agent you would like to list or help you purchase a home. Choose an agent that you feel comfortable with, you need to be able to communicate with them exactly what you want and need. This doesn’t necessarily mean your agent has to be your best friend, just someone that you respect and can speak with easily. Also, choose an agent who you feel will give you the upmost attention and works with your schedule, being able to reach an agent is very important when trying to sell or purchase a home.

 At Ruhl&Ruhl we have 10 offices and over 250 agents available to make purchasing or selling a home as easy as possible. Please feel free to browse each offices’ agent roster to help select an agent. If you would like one on one help in choosing the agent that is right for you, please contact Customer Service at 888.441.1776.

Check out Ruhl&Ruhl on Facebook & Twitter

Region’s Housing Market Turned the Corner in Third Quarter

According to economists surveyed by the National Association for Business Economics, the recession, which began in December 2007, has ended. Further, they noted the housing recovery “will gather momentum” and 2010 will be the first year since 2005 that the housing sector will contribute to overall growth. After flattening out this year, house prices, they said, will see a “modest gain of 2% in 2010.”

Third quarter marked the turnaround point for housing sales in our markets. At Ruhl&Ruhl, for example, we sold and closed on 8.4% more properties during the third quarter of 2009 than during the third quarter of 2008, comparing 1187 sales this year to 1095 sales last year. Pending sales written in September of 2009 and not yet closed were up 23% over September of last year and sales written during the first three weeks of October were up 55%. So fourth quarter sales closed will be well ahead of fourth quarter 2008 as well.

The 2009 Regional Real Estate Results chart on page 2 shows that year to date the number of properties sold is still down from last year, ranging from 3% down in the Iowa City area to 17% down in the Maquoketa/Preston/Bellevue markets. This reflects the devastating first quarter results. In most markets, year to date sales volume is also down more than the number of properties sold. This is because more lower-priced homes have been selling due to the first-time homebuyer tax credit. This change in the mix of deals to more lower-priced sales and fewer higher-priced sales has also resulted in lower average sales prices in most of our markets. The good news is – now that first-time buyers have purchased entry level homes, sellers of those homes can buy new, more expensive homes, and we will see increasing average sales prices.

Home prices in our region continue to be stable, as show in the Federal Housing Finance Agency chart on page attached. Ranked by price appreciation, all of our regional markets are in the top 25% of 294 Metropolitan Statistical Areas nationally.

This continues to be a great time to buy a home in our markets. Interest rates are still near record lows – in the range of 5.000%-5.250% for 30-year conventional and FHA mortgages and 4.375%-4.625% for 15-year mortgages. All sellers are advised to get pre-approved for a mortgage before listing their homes for sale if they are planning to purchase a new home. Because of the tightened credit requirements, some sellers have sold their homes only to find they no longer qualify for a mortgage to purchase a new home. While mortgages monies are still readily available in our region to buyers with good credit, nationally nearly one-third of all borrowers who applied for a loan last year were turned down, according to the Federal Reserve. Call 1862 Mortgage to get preapproved at 563-441-1862.

Today, Ruhl&Ruhl REALTORS, the residential company, has 250 sales associates, 60 employees and ten residential offices serving eastern Iowa and western Illinois, along with its corporate office in Davenport, Iowa. The company annually sells approximately 3,400 homes in the areas it serves, including offices in Davenport, Bettendorf, Clinton, Dubuque, Bellevue, Muscatine, Coralville, DeWitt, and Maquoketa, Iowa and in Moline, Illinois. In addition to residential sales, Ruhl&Ruhl offers services in relocation, new home sales, farm sales, senior services, property management, and mortgage services through 1862 Mortgage.  For more information on Ruhl&Ruhl, visit their website at www.RuhlHomes.com.

The HARD Facts About our Soft
New Construction Market

As much as we in the Midwest like to think we are insulated from the tremendous swings in the market often experienced by the coasts and some larger markets, the truth is – this time we are in it too! 

Developers and builders in our region continue to suffer through a drought when it comes to financing being available for anything from a single spec home to any kind of new development.  Loans that are already on the books are being scrutinized very closely, with new appraisals and cash calls becoming very common among builders and developers of all sizes and capabilities.   This has resulted in a situation where shrinking new home sales becomes a “self-fulfilling prophesy” as spec inventories dwindle and cannot be replaced and pre-sold opportunities are missed because of tightened lending practices for both consumers and builders. Add in the rapidly increasing mandates on the part of federal, state and local governments regarding everything from erosion control to attempting to mandate interior sprinkler systems, and it is easy to see why homebuilders of all sizes might be questioning their career choice.

In the region served by Ruhl&Ruhl Realtors, while the year-to-date sales of all new residences is down from the same period in’08, there are some signs of stability and a few bright spots.  The three largest new construction markets within our region are the Quad Cities, the Iowa City area and Dubuque.  Of the three, Dubuque has shown the most stability, as unit sales recorded are exactly equal to the same nine month period in ’08.  Overall, Quad City market unit sales have dropped 23% in the same period and the Iowa City market is off by 26%. 

Hardest hit in all of these markets is the sale of free-standing houses. The three major markets combined have suffered a 48% reduction in sales so far this year, as compared to the same period in ’08.  But, sales of condos, townhomes and zero lot line residences are up 13% across these same markets.  The net result is still a loss of 26% in unit sales for these three markets but a 56% increase in market share for condos, townhomes and zero lot line homes. 

An additional underlying factor is the fact that a relatively high percentage of the condo sales increase is in a price range of $150K and less, meaning that fewer dollars were spent and there was less “ripple effect” in our various communities’ economies.  Overall, the decrease in dollar volume sales is far greater that the drop in unit sales.  A perfect example of this phenomenon is the North Liberty market.  Through the first nine months of 2008, North Liberty had recorded 140 house sales and 143 condo sales – a very balanced market.  For the same period this year, they have 55 house sales (-61%) and 183 condo sales (+28%) for a net loss of unit sales of 16%.  North Liberty’s experience is very typical in our region.

As mentioned earlier, widespread unavailability of financing for builders and the changing sales statistics are having an impact on the new construction inventory in the region.  At the end of 2008, free-standing houses represented 65% of all new construction sales and 46% of inventory in our region.  At the end of the 3^rd quarter in 2009, they represented 45.4% of year-to-date sales and 49% of new construction inventory.  And, as condo, townhome and zero lot line homes sales have increased from 35%to 55% of sales, their inventory levels have fallen from 54% to 51% of the market, leaving an overall market inventory that is 14% smaller than at the end of ’08, but more balanced with current sales activity.  

Unrelated to sales statistics, another continuing trend we have observed is the shrinking of new homes in terms of square footage, in exchange for more versatile and open floor plans with increased emphasis on upscale finishes and amenities. As “space for the sake of space” becomes less universally attractive and more expensive to maintain, “Thinking Big” refers more to the QUALITY of our ideas and designs – not the SIZE of our carbon footprint.

Not all the FACTS are negative.  Despite what you read or hear – If you are thinking about buying or building a new home, NOW is probably the perfect time to move forward.   We still have LOW interest rates, beautiful building sites, experienced and innovative builders and a wealth of emerging technological developments and new products available, making this a great time to move forward.  And here is a KEY FACT to remember……………………………………..

IT WILL NEVER GET LESS EXPENSIVE TO BUILD YOUR DREAM THAN IT IS TODAY!!!

Ruhl&Ruhl REALTORS, the residential company, has 250 sales associates, 60 employees and ten residential offices serving eastern Iowa and western Illinois, along with its corporate office in Davenport, Iowa. The company annually sells approximately 3,400 homes in the areas it serves, including offices in Davenport, Bettendorf, Clinton, Dubuque, Bellevue, Muscatine, Coralville, DeWitt, and Maquoketa, Iowa and in Moline, Illinois. In addition to residential sales, Ruhl&Ruhl offers services in relocation, property management, new home sales, farm sales, senior services, and mortgage services through 1862 Mortgage.  For more information on Ruhl&Ruhl, visit their website at www.RuhlHomes.com.

10. Amenities
Gourmet kitchen, mini-spa bathroom, home theatre. You want it you got it! It’s all about you!

9. Energy and Resource Efficiency
Today’s new homes are increasingly energy-efficient. You’ll be amazed at how low your utility bills can be!

8. Low Maintenance Cost
You’ll have more time and money to do things you really want to do!

7. Build Wealth
Today’s flexible financing options allow for minimum down payments, while you build maximum returns on the total value of the home. Plus you get to live there!

6. Financial Security
College expenses, retirement, emergencies. Your 401K should be so useful.

5. Interest Rates
Currently near historic lows.

4. Great Selection
More choices in every price range.

3. Tax Benefits
Enjoy huge deductions on mortgage interest as well as state and local property taxes.

2. Safety
The condition of our housing market is incredibly stable. Housing values continue to increase over time!

1. The Opportunity is Now
You will never build a home tomorrow for less than what you can build it for today.

Ruhl&Ruhl REALTORS’ mission is to develop confident, trustworthy, successful, integrity-minded real estate professionals who are working and learning to their highest potential in a caring and supportive environment taught by a competent staff of well known industry leaders.A career in Real Estate can be exciting and rewarding.  But choosing a new career path requires great thought and careful research.  The information provided here will answer some questions you may have about a career in Real Estate, prepare you for its challenges, and provide direction to get you started.

The real estate profession is both challenging and rewarding. Real estate is for people who are able to manage their time and be accountable for themselves. Real estate is for people who are motivated and want to end their day knowing they have accomplished something: helping make the process of buying and selling a home less stressful for someone by offering a wealth of knowledge.

Who succeeds in real estate?  All kinds of people:

• Professionals Seeking a Second Career
• Sales and Service Professionals
• Professional  Volunteers and Homemakers
• Teachers, Nurses, Social Workers, Retirees
• College grads

Essentially, if you enjoy working with people, and are filled with personal drive for success and excellence and are looking for a career that allows you to be your own boss, set your own schedule, and earn a paycheck that truly reflects the amount of time and effort you put in real estate may be the career for you. 

Whether you are just considering a real estate career or you are an experienced agent, Ruhl&Ruhl REALTORS may be the right choice for you.  No company will work harder for your success.

 
For further details, or to register for an upcoming Career Seminar, contact: Darcy Holle – 563-441-5102

Ruhl&Ruhl is featured in the Quad City Business Journal for the Mobile Ruhl applications! To download Mobile Ruhl click here

Mobile applications link buyers, agents

By Doug Schorpp

New Web-based mobile application systems are up and running for two Quad-City real estate firms, giving agents and customers access to all information about properties on their mobile phones. Mel Foster Co. and Ruhl&Ruhl Realtors both announced the launch of their applications in late July.

Melfoster-co.mobi

Kris Ratigan, marketing director for Mel Foster, said the company’s Web site is optimized to work fast on all mobile devices. It is available nationwide, making it useful to companies and individuals relocating to the area, she said. The Web site is www.melfoster-co.mobi. “This new application is…designed to allow real estate clients and prospects to contact our agents and 10 area offices as well as view all area residential listings in eastern Iowa and western Illinois from their mobile devices,” Ratigan said. She said the Web site has been gaining momentum as buyers and sellers catch on. The consumer can search by address, even a partial address, city, state, ZIP code, or MLS number. “This is an exciting time as technology lends new ways to connect with people,” Ratigan said.

Mobile Ruhl

Ruhl&Ruhl’s new application, Mobile Ruhl, allows users to search real-time property information, display listings on a map and has GPS capabilities. Consumers can search almost every listing in eastern Iowa, western Illinois, and southwestern Wisconsin, whether listed by Ruhl or another company. The GPS technology pinpoints the location of the user and delivers information. Users also can search by price, the number of bedrooms and bathrooms, as well as address, city and ZIP code. The application can be downloaded by going to www.Ruhlhomes.com and clicking on the “Mobile Ruhl” icon. “This new technology gives our clients the benefit of having all real estate listings right at their fingertips, whether at home, in the office or even in the car,” Ruhl&Ruhl company president Caroline Ruhl said.

 Survey Shows changing habits

                An online survey of respondents ages 25-59 done for Smarter Agent, the company that worked with Ruhl&Ruhl, showed the availability of a mobile real estate application had a significant impact on loyalty and perception of a specific real estate agent or broker.

Among the findings:

• 49 percent said they would be more inclined to use a real estate agent to list their home who offered a mobile application as part of a marketing plan to attract buyers
• 39 percent said they would choose a real estate agent who offered a mobile application to search for real estate for free
• 90 percent are aware that they can download applications to their cell phones

Article provided by: Quad-City Business Journal

The time to receive the $8,000 Tax Credit is quickly disappearing but it can be confusing on whether you qualify or not! Use this helpful FAQ to get the quick facts on this great incentive for first time homebuyers!

Contact 1862 Mortgage today for more information – 866.441.1862

1. How much can I claim for the tax credit?

Borrowers can claim up to $8,000 or 10% of the home’s purchase price, whichever is less.

2. Who is eligible for this tax credit?

First time homebuyers, defined as those who have not owned a principal residence during the three year period

prior to purchase of the home. For married couples, their prior ownership applies to both the homebuyer and

his/her spouse.

3. Does this tax credit need to be repaid?

No repayment is necessary as long as the home is used as a principal residence for at least three years. If it is

not, the entire amount of the credit is recaptured. Certain exceptions apply. The $7,500 tax credit that is

available for qualified purchases in 2008 does require repayment.

4. How long is this tax credit valid?

The tax credit is valid on eligible homes purchased on or after January 1, 2009 and before December 1, 2009.

5. What properties are eligible for the tax credit?

Any home that will be used as a principal residence (including condominiums, co-ops and townhouses).

6. Are there income limit restrictions?

Yes. The tax credit amount is reduced for buyers with Modified Adjusted Gross Income (MAGI) of more than

7. How does this work with my tax refund or balance due?

The fact the credit is refundable means that the credit can be claimed even if the taxpayer has little or no federal

income tax liability to offset. The following scenarios will help explain.

Scenario 1:

If a qualified homebuyer expected federal income tax liability of $6,000 and had withholding of $6,000 for the

year, then without the tax credit the taxpayer would owe the IRS nothing. Suppose now the taxpayer qualified

for the $8,000 homebuyer tax credit. As a result, the tax payer would receive a refund check for $8,000.

Scenario 2:

If a qualified homebuyer expected federal income tax liability of $6,000 and had withholding of $7,000 for the

year, then without the tax credit the taxpayer would receive a refund of $1,000. Suppose now the taxpayer

qualified for the $8,000 homebuyer tax credit. As a result, the tax payer would receive a refund check for

$9,000.

Scenario 3:

If a qualified homebuyer expected federal income tax liability of $6,000 and had withholding of $5,000 for the

year, then without the tax credit the taxpayer would owe the IRS $1,000. Suppose now the taxpayer qualified

for the $8,000 homebuyer tax credit. As a result, the tax payer would receive a refund check for $7,000.

Scenario 4:

If a qualified homebuyer expected federal income tax liability of $10,000 and had withholding of $1,000 for

the year, then without the tax credit the taxpayer would owe the IRS $9,000. Suppose now the taxpayer

qualified for the $8,000 homebuyer tax credit. As a result, the tax payer would owe the IRS $1,000.

8. How do I apply for the tax credit?

You claim the tax credit on your federal income tax return. Specifically, taxpayers should complete IRS Form

5405 to determine their tax credit amount. No other applications, forms or pre-approvals are required.*

9. If I qualify and buy a home in 2009 can I choose to apply the credit to either 2008 or 2009?

Yes, the law allows the taxpayers to chose to treat qualified purchases in 2009 as if the purchase occurred in

2008. This means the income limitation tests for the year selected would apply. Previously filed 2008 tax

returns can be amended to claim the tax credit.

10. I qualify for the tax credit and I have already bought a home in 2009 but I have already filed to claim

on my 2008 tax return the $7,500 tax credit that I have to pay back. Can I claim the new $8,000 credit

instead?

Yes, taxpayers in this situation can file an amended 2008 tax return. You should consult with a tax advisor to

ensure you file this amended return properly.

11. Is this a good time for a first time homebuyer to purchase a home?

Absolutely! Interest rates are at historic lows and home prices are in general lower. Also, there is an abundance

of homes for sale, meaning you will have many options from which to choose. One thing to note is you will

need a down payment, but not to worry, there are low down payment programs available for first time

homebuyers.

September revealed a continued improvement in home sales for Ruhl&Ruhl REALTORS in our markets in Eastern Iowa and Western Illinois.

Ruhl&Ruhl experienced a 24% increase in sales volume of new and existing homes in September, compared to the same month last year. Also in September 2009, the company’s number of units sold was up 23%.

The 3^rd quarter also ended on a positive note, with a 16% increase in sales volume and 19% in units sold, as compared to 3^rd quarter of last year.

“We are confident 4^th quarter will show an even better improvement, since that was when the market came to a screeching halt last year,” said Caroline Ruhl, President of Ruhl&Ruhl REALTORS.

“With continued market improvement, coupled with the first-time home buyer tax credit and low interest rates, we are optimistic that home sales should stay strong through the end of 2009 and well into 2010.”

A family-owned company since 1862, Ruhl&Ruhl REALTORS annually sells approximately 3,400 homes in eastern Iowa, western Illinois and southwestern Wisconsin.  Caroline Ruhl is the President and owner of Ruhl&Ruhl REALTORS, and is the fourth generation of the Ruhl family to lead the residential brokerage and home services company.  Headquartered in Davenport, Iowa, the company has 250 sales associates and 60 employees based in sales offices located in Bettendorf, Bellevue, Clinton, Coralville, Davenport, DeWitt, Dubuque, Maquoketa, and Muscatine, in Iowa, and in Moline, Illinois.  In addition to residential sales, Ruhl&Ruhl offers services in relocation, new home sales, farm sales, senior services, and mortgage services through 1862 Mortgage.  For more information on Ruhl&Ruhl, visit their website at www.RuhlHomes.com

More and more people are taking their home search out of the car and onto the computer. With our great new site, ruhlhomes.com, it’s easy to search for a home from the comfort of your living room. Online websites have taken a lot of the leg work out of finding the perfect home. But many people aren’t utilizing social media, like Facebook, that they use on a daily basis to help them find a new home. How can social media help you find the perfect home?

Social media has provided us with an abundance of information that wasn’t necessarily available to us before! From a buyer and seller’s point of view, Facebook can aid you in choosing a real estate agent since it does provide a more up close and personal feel without being actually up close and personal. Real estate agents are turning towards social media, specifically Facebook, to help expand their client base. Ryan Vandaele, a Ruhl&Ruhl agent who uses Facebook as a business tool, says “There are sooo many people on Facebook in the Quad Cities that it seems that it is just as addicting as having your morning cup of coffee….Once you start getting more and more people responding to your posts or emailing you back, that is the time to promote yourself and your business!  People will read what you have to say!” As a buyer or seller, agents want you to read their page and check them out, use this to your advantage! You could find that a real estate agent has similar intrests, like is an avid cycler just like you, and you’d love to work with them because they know all the bike paths in the area.

For seller’s, Facebook is also a great way to get your home out there; not only will you have the exposure that a real estate agent is providing, but you can let everyone know that your house is up for sale! Maybe you have an acquaintance, which is also a friend on Facebook, who was looking to purchase a home in your neighborhood. 

For buyer’s, Facebook provides groups that can give you more information about the community. This is a great way to see if a community meshes with your lifestyle and is somewhere you would like to make your home. Also, buyer’s can scope out local groups they would like to participate in or join.

Facebook is not going to be your primary tool in selling or buying a home, but it does help provide information that isn’t traditionally found on an agent’s page or real estate website. Facebook can be used to aid in your home search or selling your home and make it an easier experience for all!