Real Estate in Lake Norman

TAX CREDIT OVERVIEW

Who Gets What?

First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What are the New Deadlines?

In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

What are the Income Caps?

The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

What is the Maximum Purchase Price?

Qualifying buyers may purchase a property with a maximum sale price of $800,000.What is a Tax Credit?

A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual™s primary residence.

How Much are First-Time Homebuyers (FTHB) Eligible to Receive?

An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is Eligible fort FTHB Tax Credit?

Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible.

This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How Much are Current Home Owners Eligible to Receive?

The tax credit program includes a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Can Homebuyers Claim the Tax Credit in Advance of Purchasing a Property?

No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Can a Taxpayer Claim a Credit if the Property is Purchased from a Seller with Seller Financing and the Seller Retains Title to the Property?

Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Some examples of this would include a land contract or a contract for deed.

According to the IRS, factors that would demonstrate the ownership of the property would include:

1. Right of possession,
2. Right to obtain legal title upon full payment of the purchase price,
3. Right to construct improvements,
4. Obligation to pay property taxes,
5. Risk of loss,
6. Responsibility to insure the property, and
7. Duty to maintain the property.

Are There Other Restrictions to Taking the FTHB Credit?

Yes. According to the IRS, if any of the following describe a homebuyer™s situation, a credit would not be due:

• They buy the home from a close relative. This includes a spouse, parent, grandparent, child or grandchild. (Please see the question below for details regarding purchases from œstep-relatives.)
• They do not use the home as your principal residence.
• They sell their home before the end of the year.
• They are a nonresident alien.
• They are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
• Their home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
• They owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008.

Can Homebuyers Purchase a Home from a Step-Relative and Still be Eligible for the Credit?

Yes. As long as the person they buy the home from is not a direct blood relative, the purchase would be allowed.

If a Parent (Who Will Not Live In the Property) Cosigns for a Mortgage, Will Their Child Still be Eligible for the Credit?

Yes, provided that the child meets the other requirements for the tax credit.

As Always “ This is a Tax Ruling “

Please consult a Tax Accountant for your scenario

 Please contact me with any questions.

Lynda Ramirez

LRamirez@kw.com

704-806-2492

My Website

What is my Home Worth?

We moved to Lake Norman from Cazenovia NY in 2004. One of the highlights of the fall in the Syracuse area is the Lafayette Apple festival. There are rides, tons of crafts, food and the most important things of all….Apple Fritters and Apple Pies.

I have missed the Apple Festival, so we decided to go to the Brushy Mountain Apple Festival in North Wilkesboro this past Saturday. This festival was recommeded to me by some friends and it takes place the first Saturday in October every year.

The ride to get there is very nice and parking was easy. I was amazed at how big it was!! It filled all the main streets of the village and spilled over to the outskirts as well.There were so many people and vendors!

There were tons of crafts and great things to look at and buy. There was lots of food of all kinds We got a funnel cake and an apple dumpling with ice cream and shared them both. No calories on either of those! We alo bought some gifts and a large bag of apples.

Unfortunately, we got there in the early afternoon and all the pies were gone. We asked around and nobody knew of any apple fritters being sold. We did try something new to us….fried pies. They were great, but I still miss those Apple Fritters!

Lynda Ramirez

704-806-2492

http://LakeNormanRealEstateSite.com

It has been a wonderful summer for boating on Lake Norman! The weather has been fantastic, the lake level has been up, and we have made the most of it!. One of my favorite things to do is go for an evening cruise when most boaters have headed home for the evening. Its peaceful, quiet, and the lake is much calmer. I LOVE the beautiful sunsets and   have tried many times to get the perfect picture. I have decided that they are all perfect pictures when they involve sunsets and water!  

Here are two of my pictures:

If you are interested in the Lake Norman area, please contact me!

Lynda Ramirez

704-806-2492

LRamirez@kw.com

www.LakeNormanRealEstateSite.com

Provided by Tom Taucher of Davidson Mortgage:

First-time homebuyers, defined as those who have not owned a principal residence in the previous three years, who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit.  This tax credit is easily claimed on the homebuyer™s federal income tax return.Tax Credit Versus Tax Deduction

It™s important to remember that the $8,000 tax credit is just that¦ a tax credit. The benefit of a tax credit is that it™s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a homebuyer were to owe $8,000 in income taxes and would qualify for the $8,000 tax credit, they would owe nothing.

Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a homebuyer is liable for $4,000 in income tax, he can offset that $4,000 with half of the tax credit¦ and still receive a check for the remaining $4,000!

Phase-out Examples

According to the plan, the tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000.

To break down what this phase-out means to homebuyers who are over those amounts, the National Association of Homebuilders (NAHB) offers the following examples:

Example 1: Assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time homebuyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.

Example 2: Assume that an individual homebuyer has a modified adjusted gross income of $88,000. The buyer™s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.

Remember, these are general examples. You should always consult your tax advisor for information relating to your specific circumstances.

Homes that Qualify

The tax credit is applicable to any home that will be used as a principle residence. Based on that guideline, qualifying homes include single-family detached homes, as well as attached homes such as townhouses and condominiums. In addition, manufactured or homes and houseboats used for principle residence also qualify.

Best Regards,

Tom Taucher

Your Personal Mortgage Consultant for Life

Office:  (704) 895.8221 ext.306

Toll Free (800) 652.7177

Fax:  (704) 895.8661

Cell:  (704) 562.1396

P.S. It’s my intention to continue building lifelong relationships one client at a time and remaining your personal mortgage consultant for life.  If you know of a friend, coworker, or family member who has a mortgage or refinancing need, be sure to contact me.  Your personal referrals are the greatest compliment I can receive.

Please contact me if you have any questions.

Lynda Ramirez

Keller Williams Realty

704-806-2492

LakeNormanRealEstateSite.com

This is my favorite time of year in Lake Norman! The birds are back, the daffodils are blooming, the tulips are getting ready to bloom and its getting warmer!

The first sign of spring, besides the warmer temperatures, is the noticeable increase in songbirds. I am an avid bird lover, so I notice this maybe more than most. I just love hearing all the different birds singing and I never tire of it.

The next thing I notice is the trees start to blossom. There seems to be an order in which this happens. I notice the Bradford pears, the dogwoods, the crab apples, the cherries, and the magnolias. They are all just beautiful, but my favorite by far, is the Bradford pears. They look like huge white cotton puffs when they are in full bloom.

I was amazed, after my first winter here, to see this tulip blooming in my yard in February! In February, Upstate NY is still a frozen tundra! I knew I had moved to the right place if I could see blooming tulips in February! I was even more amazed that there were pansies that would bloom all winter!

Because the different species of trees bloom at different times, we have a show that goes on for weeks! I encourage you to visit during spring if you are considering relocating to the Charlotte and Lake Norman area. You too, will fall in love with spring in Lake Norman! Its actually warm enough to get out on Lake Norman and do some boating also! My husband and I went out last Sunday and Monday we took our daughter out during her visit from college.

This is especially hard to believe since a short week and a half ago it looked like this here:

Please contact me if you would like information about buying or selling a home in Lake Norman. I hope to hear from you!

Lynda Ramirez

Keller Williams Realty

704-806-2492

LRamirez@kw.com

www.LakeNormanRealEstateSite.com

Search for homes

Keller Williams Realty Climbs to
Third-Largest Real Estate Franchise in United States

Company outpaces market with financial model, agent-centric initiatives

AUSTIN, TEXAS (March 2, 2009) ” Keller Williams ® Realty Inc., announced last week at its annual convention in Orlando, Fla. that it is now the third-largest real estate franchise in the United States, surpassing RE/MAX ® International. According to Steve Murray of REAL Trends, a leading source of analysis and information in the residential real estate industry, the Austin, Texas-based company claimed the number three spot with 72,794 U.S. associates at the end of 2008.

œThe success of Keller Williams Realty can be directly attributed to the hard work and perseverance of our associates and the soundness of our economic and organizational models, said Mark Willis, CEO of Keller Williams Realty, Inc.  œWhile others might be looking at this market and seeing fear and uncertainty, we have always approached it as our opportunity to shine and grow. And that mindset has paid off.

The company has been gaining ground for the last three years, outpacing pervasive downward trends in the real estate industry. Comparing the average annual performance of the company from 2004 – 2005 (before the shift in the real estate market) to 2006 – 2008, Keller Williams Realty increased its associate count by 52 percent, while market share for its offices increased 83 percent and agent gross commission income went up 35 percent. Keller Williams Realty has 679 offices operating in the United States and Canada. In 2008, the company shared more than $30 million in profits with its associates through its profit sharing program.

œThrough profit share, our phenomenal coaching and training and our technology offerings, we are offering agents their own ˜bailout plan™ for this market. Willis added.

The company also announced that after years of searching for a partnership to provide its associates with affordable health insurance, they are moving forward with a solution.

The soon-to-be-launched Keller Williams Health Providers Program will include options for major medical, limited medical, catastrophic coverage and a separate cancer plan. The health insurance coverage is the first step toward a total wellness program for associates.

œWe have always been very aware that as independent contractors, our agents face barriers to obtaining health coverage, said Mary Tennant, president and COO of Keller Williams Realty. We know that for many, this new option may alleviate some of the stress that they face in today™s economy. After all, our associates are not just our partners “ they are our family.

Last fall, the company also announced the launch of KW Commercial, a new division of the company dedicated to providing commercial real estate associates with specialized technology, marketing tools and resources. KW Commercial already has more than 220 active brokers across the U.S. and Canada.

œOur goal is to create synergy between the residential and commercial sides of our Keller Williams offices, raising the bar for the service we provide to our clients, said Buddy Norman, president of KW Commercial. œWe envision our commercial and residential agents working side-by-side, sharing referrals and helping our offices grow.

œOur growth in the last year and now becoming the third-largest real estate company in the United States was a true team effort and a company-wide win. We are so grateful for all of the leadership and commitment our associates have shown to power through this shift, added Willis.

###

About Keller Williams Realty Inc.:

Founded in 1983, Keller Williams Realty Inc. is the third-largest real estate franchise operation in the United States, with 679 offices and 74,000 associates in the United States and Canada.  The company, which began franchising in 1990, has an agent-centric culture that emphasizes access to leading-edge education and promotes an economic model that rewards associates as stakeholders and partners. For more information, visit Keller Williams Realty online at (www.kw.com).

Lynda Ramirez

Keller Williams Realty

704-806-2492

LRamirez@kw.com

www.LakeNormanRealEstateSite.com

Overcoming the misconceptions about the “credit crisis”

You™ve watched the news and read about it in the papers.  You know, the œcredit crisis and how buyers need 20 percent down in order to buy a home? And even if you found a buyer with 20 percent down, lenders aren™t making loans anyway. So, why bother, right? Wrong!

We™re right smack in the middle of what just might be the biggest disservice ever perpetrated on potential home buyers.   It seems the press just can™t get enough of all the gloom and doom in the housing industry.   The fact is that mortgage money is as available today as it was a year ago and loans are being made this very moment with little or no money down. And, no, platinum credit isn™t required.   You just need to know where to look.   Who are these lenders? They™re right down the street.

Federal Housing Administration (FHA) loans are exploding onto the mortgage scene; recent estimates are that one out of five mortgages are FHA loans. FHA loans never went away, their reemergence is a result of the collapse of the sub-prime market. FHA doesn™t technically have a minimum credit score, although, in practice, lenders won™t approve an FHA loan with a credit score below 500. But that™s a far cry from the notion that an 800 score is the only thing lenders care about.

The best part?   FHA only requires 3 percent down. 3 percent. And that 3 percent can come in the form of a gift or grant.   FHA borrowers only need to have $500 in a transaction.   All the while, FHA mortgage rates are as good or better than their conventional counterparts.

Low or no down payment, extremely competitive rates and easier qualifying.   No wonder FHA is moving up the charts!

Please contact me if you would like more information about FHA loans or help getting into your first home.

Thank you!

Lynda Ramirez

704-806-2492

LRamirez@kw.com

http://LyndaRamirez.yourkwagent.com

LAKE NORMAN FUN FACTS

• Lake Norman is the largest man-made lake in North Carolina. It covers about 32,510 acres and is larger than the sea of Galilee. The largest natural lake in the state is Mattamuskeet, at about 30,000 acres.
• Lake Norman’s deepest point is 130 feet and the average depth is 33 feet.
• Lake Norman holds about 3,400,000,000 gallons of water.
• Lake Norman’s shoreline measures approximately 520 miles, more than the coastlines of North Carolina and South Carolina combined.
• Lake Norman is bordered by 4 counties: Mecklenburg was named for the home province of King George III’s wife, Queen Charlotte; Catawba was named for the Catawba Indians, who actually called themselves Eswataroa (meaning great river); Lincoln was named for Benjamin Lincoln, not Abraham Lincoln; and Iredell was named for James Iredell, who never saw the county.
• There have been many unusual sightings around Lake Norman, including a mysterious cat-like creature known as the wampus, UFOs, man sized catfish and an alligator or two.
• During the Revolutionary War a battle was fought on February1, 1781 at almost the exact spot where Cowan’s Ford Dam now sits. Militia General William Lee Davidson, for whom Davidson College is named, was killed in the battle.
• The groundbreaking for Cowan’s Ford Dam was held September 28, 1959. Governor Terry Sanford was the keynote speaker at the dedication of the completed dam five years later on September 29, 1964.
• The first metal bridge to span the Catawba River in this area was built by James W. Brown & B.A. Troutman of Mooresville and completed in 1911. It was located about 1/4 mile downstream form the present NC Hwy 150 bridge.
• Under the heading of planning ahead; James B. Duke’s associates began purchasing Catawba Valley bottomland in 1901 to prepare for the future power generation.
• Had Lake Norman  not been in place, there would probably have been flooding  on the Catawba River in 1970. Severe flooding did occur   in 1916 and 1940.
• The Catawba River froze solid enough  for horse drawn   wagons to cross in November 27, 1886 and January 19 1887.  

10 things you should ask a real estate agent

Having the right real estate professional by your side can greatly improve your home-buying experience. A good rule of thumb is to interview a minimum of three candidates.

Here are 10 questions to ask during an interview:

1. Are you a full-time professional REALTOR ®? How long have you worked full-time in real estate? What geographic areas do you specialize in?
2. Do you have a Website? What information can I find there?
3. How will you keep me informed during my home search and throughout the transaction?
4. Do you have a staff or a team? If so, what roles will they play in my transaction?
5. Will you show me properties from other companies™ listings? (Some real estate companies do offer their buyers™ agents a higher commission if they are able to sell œin-house listings. In those instances, there can be added incentive to limit the range of homes you are shown. This may affect your home search and how much you your agent™s fee will be.)
6. Will you represent me exclusively, or will you also represent the seller? May I have that in writing?
7. How will you get paid? How are your fees structured? May I have that in writing?
8. What distinguishes you from other real estate agents? What is your negotiating style?
9. May I contact some of your recent clients as references?
10. Do you have a performance guarantee? If I am not satisfied with your performance, can I terminate our buyer agency agreement?(In the heavily regulated world of real estate, it can be difficult to offer a performance guarantee. Typically, agents will outline verbally what you can expect from their performance. Keller Williams Realty understands the importance of win-win business relationships: The agent does not benefit if the client does not benefit.)

If you would like more information on buyer’s agents please contact me at LRamirez@kw.com or visit my website at http://LyndaRamirez.yourkwagent.com

Charlotte North Carolina named as one of only 3 cities in the US

that showed home value appreciation in 2007

(excerpts taken from The Charlotte Observer report dated 12 -27 -07)

As home prices tumble across the country, Charlotte is one of just a few metro areas where values

are rising over last year. Charlotte’s home prices rose 4.3 percent in October compared with the

same month last year — more than in any other city in Standard & Poor’s/Case -Shiller home price

index. Just two other cities, Portland,Ore., and Seattle, saw increases. The reasons: Steady job

growth and historically moderate home price appreciation. Bob Morgan, president of the Charlotte

Chamber, said the area’s strong economy helps keep home prices up. While the numbers are

preliminary, more than 14,000 jobs were created in the Charlotte area in 2007, he said, compared

with more than 12,000 jobs in 2006. Pat Riley, president of Allen Tate and chairman of the chamber

for 2008, agrees.”If you take care of creating jobs, that takes care of a lot of other things,” he said.

“Every new job means a new household, whether it’s an apartment or a house.”

Dot Munson of Re/Max Executive Realty, president of the regional Realtors, said Charlotte has

benefited from steadily growing home values in recent years, as opposed to sharp increases

elsewhere.We’ve never seen huge, double-digit price increases,” Munson said. “Just a steady,

healthy appreciation every year — 5, 6, 7 percent. So we don’t have the correction to be made, like

some of the other markets.”Munson and other real estate agents say that — so far — home sellers in

Charlotte aren’t cutting prices to speed sales. “We are seeing a longer time on the market,” Munson

said. “But people are not willing to give their homes away to sell them.”

In October of last year, the average home sold through Carolina Multiple Listing Services remained

on the market 118 days before closing. In October 2007, average time on market had increased to

almost 124 days The number of homes on the market longer than 121 days crept up 3.5 percent

over the same period. Munson and Riley agree with national economists that a growing inventory of

homes will have to work its way through the market before housing rebounds, and that’s not going to

happen right away, even in Charlotte.

Nationwide, home prices could fall another 10 percent over the next 12 to 18 months before

bottoming out, said Patrick Newport, an economist with the financial forecasting consultant, Global

Insight. Sales of homes will likely start to rebound late in 2008, with price appreciation to follow,

Newport said.

LRamirez@kw.com          

http;//LyndaRamirez.yourkwagent.com

704-806-2492