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It looks very promising that the government is not only going to extend the First Time Home Buyers Tax Credit but they may just sweeten the deal for everyone. The extention will include a 6500.00 tax crdit for those that own a home and have lived in that home for at least five years. If this goes through they will also increse the maximum income cap to $125,000 for individuals and $225,000 for married couples, up from $75,000 and $150,000, respectively. An earlier version of the compromise would have increased the cap to $250,000 for married couples. This is fantastic news for anyone looking to move up to a larger home or move to a better neighborhood. Now with interest rates holding steady and home prices at all time lows what could anyone be waiting for? In our lifetime there will never be a better time to buy a home.

So the question is what are you waiting for?

Senators Agree To Extend Home buyer Tax CreditProposed Plan Would Give Repeat Buyers Reduced Tax Credit

Posted: 4:32 pm CDT October 28, 2009Updated: 6:56 pm CDT October 28, 2009

WASHINGTON -- Senators agreed Wednesday to extend a popular tax credit for first-time home buyers and to offer a reduced credit to some repeat buyers.

Are you still on the fence?

Or Should I ask, WHY ARE YOU STILL ON THE FENCE?

Interest rate could be going up!

Looks like the days of the government artificially keeping interest rates low are about to end. The 8000.00 tax credit is scheduled to end at midnight November 30th 2009. If you are still wondering if it is the bottom and if it is a good time to buy this article should answer the question for you so .....

WHY ARE YOU STILL ON THE FENCE?

By TIM PARADIS, AP Business Writer Tim Paradis, Ap Business Writer – 49 mins ago

NEW YORK – A more upbeat Federal Reserve is reassuring investors that they've been making the right bets. Stocks bounded higher Wednesday after the central bank said the economy appears to be "leveling out" rather than simply shrinking at a slower rate. The Fed's more positive take on the economy compared with its assessment in June wasn't surprising but it still bolstered hopes that the economy is in fact rebounding.

Wednesday's advance restarted the market's summer rally after a pause on Monday and Tuesday. Major market indexes jumped more than 1 percent, including the Dow Jones industrial average, which jumped 120 points.

Financial and technology shares posted some of the strongest gains after ratings upgrades and profit reports provided fresh evidence of a recovery. The stock market's advance was itself adding to bank and insurance stock gains — its climb means their investment portfolios are surging in value.

Investors drew reassurance from Fed policymakers' comments. The central bank left interest rates unchanged, as expected, following a two-day policy meeting.

"They did really endorse the fact that we're moving into recovery, not searching for the bottom," said Bruce McCain, chief investment strategist at Key Private Bank in Cleveland.

Stocks have been rallying much of the past four weeks on expectations that the economy is strengthening.

The Fed also said it would slow the pace of its program to buy $300 billion worth of Treasury securities so that it will close at the end of October, rather than September as originally intended. The central bank has bought $253 billion of the securities so far. The program is designed to reduce rates on mortgages and other consumer debt.

"The fact that they are going to wind down the Treasury purchases I think leaves the clear impression that they are quite satisfied with the progress we are making in the recovery," McCain said.

But some analysts are skeptical that the market can maintain its climb even with the Fed's more optimistic words. The S&P 500 index is up 14 percent in little more than a month and 48.7 percent since it fell to a 12-year low in early March.

"I looks like a pretty sharp rise to me to have a lot of sustainability," said Dan Cook, senior market analyst at IG Markets in Chicago.

According to preliminary calculations, the Dow rose 120.16, or 1.3 percent, to 9,361.61. The Standard & Poor's 500 index rose 11.46, or 1.2 percent, to 1,005.81, while the Nasdaq composite index gained 28.99, or 1.5 percent, to 1,998.72.

Rising stocks outpaced those that fell 5-to-2 on the New York Stock Exchange, where volume came to a light 1.2 billion shares, flat with Tuesday. Light volume can skew price moves but is typical of late summer when many traders take vacations.

The gains came a day after the market posted its biggest loss in five weeks. The Dow fell 97 points as investors worried about the health of banks.

Investors found encouragement, however, from a range of industries.

Peter Jankovskis, co-chief investment officer at OakBrook Investments in Lisle, Ill., said quarterly results from luxury homebuilder Toll Brothers and retailer Macy's Inc. could be signaling that consumption is increasing. That is key to a recovery because consumer spending accounts for more than two-thirds of U.S. economic activity.

Homebuilders jumped after Toll Brothers said 3 percent more homebuyers signed contracts in its fiscal third quarter, the first annual increase in four years.

Toll's statement that many of its markets are improving boosted confidence because analysts point to unemployment and housing as two of the biggest obstacles to a rebound. Toll jumped $2.94, or 14.4 percent, to $23.42.

Macy's reported a better-than-expected second-quarter profit and cited cost-cuts in raising its full-year earnings forecast. Macy's rose 93 cents, or 6 percent, to $16.40.

Insurers rose after S&P raised its credit outlook for Travelers Cos. The commercial and personal property insurer advanced $1.50, or 3.3 percent, to $46.43. It was the biggest gainer among the 30 stocks that make up the Dow industrials.

Tech stocks rose after Applied Materials Inc.'s fiscal third-quarter results topped analysts' expectations. The maker of equipment for manufacturing semiconductors rose 44 cents, or 3.3 percent, to $13.66.

Meanwhile, bond prices were mixed after an auction of $23 billion in 10-year Treasury notes saw demand in line with recent levels but down from last month. The Treasury Department is issuing a record $75 billion in three auctions this week. The third auction, for $15 billion in 30-year bonds, is Thursday.

The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.71 percent from 3.67 percent late Tuesday. Bond prices jumped Tuesday as stocks fell.

Investors have been tracking demand because a drop in buyers could force the government to increase its payout. The results rise in rates would raise borrowing costs and could slow a recovery.

The dollar was mixed against other major currencies, while gold rose.

Benchmark crude rose 71 cents to settle at $70.16 a barrel on the New York Mercantile Exchange.

First I want to say Thanks to Matt Costello and Madcitydigs for a great weekend of foreclosure hunting. Madcity Property and Madcitydigs teamed up to caravan with a group of interested investors and home buyer looking for a great foreclosure bargain. We viewed 10 foreclosure/Bank owned properties on Saturday. What we found was just what we thought we would find when we all started out on this little caravan adventure. For those of us that have been working the foreclosure market for a while now, we knew we would find a very wide variety of properties in terms of styles, prices and conditions. What we found was just that a mix of styles, prices and most of all conditions. We expected to find properties that are in need of lots of work and we did. The ones that need a lot of work are still valuable properties for the right owner that has the knowledge and the skill to bring them back to life. The thing that was most surprising to some was, we found a lot of properties that are on the complete other end of that scale, we looked at properties that are less than 3 years old and in almost new condition and yet still priced to make them a very good deal with discounts around 10% off market. Although they are not the great deals with prices that many unrealistic buyers think they are going to find out in the foreclosure market, for the right buyer looking for a newer home that is in great condition; a ten percent discount is a big deal. What I think most of us set out to find was that diamond in the rough and we were not disappointed. There are some homes out there on the market that only need some cosmetic work to turn them around and make them winners. It is amazing what a little paint, new carpets and a little clean up will do for a property. They don't last long so if that is your game you need to be prepared to write offers because they are not going to be on the market for long. Overall the caravan was a great time. We met a great group of people that have very diverse wants and needs. I think everyone got a chance to see something that they had at least some interest in, maybe not the property they are ready to buy on the spot, although some did write offers, I think we all walked away with a much better understanding of the foreclosure market and what you will get for your hard earned dollars. If you dare to venture into the foreclosure/ROE market remember some homes you see will be that diamond in the rough and some will be just down right rough! There is a lot to choose from and a lot to look at but in the end there are some really good deals out there if you just know where to find them. If you are thinking of heading into the foreclosure market make sure you take along someone that has some experience and knowledge of this unique market. Go have fun but always be aware of the land mines involved. We have nothing but sympathy for homeowners in foreclosure and nothing we say here is intended to victimize them or worsen their situation. However, let's be realistic, in any kind of market, there are buyers and sellers. If you've been priced out of homeownership the last several years, this may be your chance to get a home of your own. For first time home owners this really is a great chance to get into the real estate market that has kept you out with high prices, add together the price adjustment and the $8000 tax credit and you have opportunity knocking on your door. You shouldn't feel guilty about buying a home that's been foreclosed -- you didn't make it happen and if you don't buy the home, someone else will. If you are interested in the foreclosure market give us a call and let’s talk about your options in a foreclosure home.

It’s a good time to buy? It's a Buyers Market

Much has been said and written about the advantages that First Time Home Buyers have in this buyers market. Homes are selling at cheap prices, interest rates are near record lows and with the $8000.00 tax credit how much better could it get for the First Time Home Buyer. It can’t so if you are a First Time Home Buyer it’s time to buy!

But what about the Move Up Buyer?

Is this the time to move up to that home of your dreams?

Well there are very good reason you should consider moving up. Many of these reasons are the very same ones as for first time homebuyers. Low interest rate will benefit everyone but what about home prices. Well let’s take a look at a client we just helped move up.

Most move up buyers have a home they need to sell in order to move up to that dream house. We recently helped a family do just that, move up to their dream house.

They bought a home in 2006; they paid right around $240k for their old house. Well in today’s market we sold that same house for $229k. 240k – 229k = 11k loss on their old home. WOW that is a pretty big loss. Well just hold on because that is not the whole story.

Now for the good news.

We moved them into a much nicer home with lots more room, in an area of town that they have always wanted to live in. Their new home cost them $280k. In ‘06, the same house sold for 335k. 335 – 280 = 55K

Simple math shows that the $55k savings on the purchase more than makes up for the $11k loss on the sale. The family gained $44k in net worth. Now that is called working the market. Let the market give you what it has to offer and use the market to your advantage.

You see we’ve got to get over our obsession with the depreciation of our current houses. Yes, they’ve gone down in value. SO, HAVE ALL THE OTHER HOUSES IN TOWN! It may take a few years to recover from the loses of the past couple years, but you can trust that you are not the exception. Your purchase will be at a lower price too! One thing is for sure what goes down will always go up and when it does you will be sitting in a position to take full advantage of the new Sellers Market!

So you are thinking of moving up?

Whether you're moving to a larger, more luxurious home or a different neighborhood with better schools and better homes, there are a number of things you probably haven't had to think about since you purchased your current home. Below are some tips to get you started.

Make Your Wish List

Create a list of your needs and use it as a guide to selecting the right home. To start, some items to consider are:

• Current and future needs of your family
• Square footage and number of bedrooms and bathrooms
• Storage and cabinet space
• Entertainment space (patio, great room, kitchen, media room)
• Neighborhood amenities
• Proximity to quality schools, transportation, work, shopping and recreation

Your question might be, Can you be a move-up buyer in a buyer's market? If you have a home to sell to move up to that next level home, this may very well be the best time to do it. Your current home may have lost some value, but the "move up" home you have your eye on, which is larger and in a higher price range has lost value too, probably more.

So yes it is a great time to Move it on up!

Experts have some creative financing advice to help move-up buyers get the home they want, without relying on selling the home that they don't want. Homeowners who've experienced rising income since purchasing their first home may actually qualify to carry two mortgages at once. These borrowers should ask their lender for a pre-qualification letter. Such a letter should specifically state that the new home purchase isn't contingent upon the sale of the old home. Presenting this letter with your offer will likely generate a smile and a sigh of relief from the seller. Not to mention a much lower sale price on that new home you have always wanted.

Qualifying for two mortgages, however, isn't the same thing as making payments on two mortgages. To make things easier, you might consider additional equity financing or a refinance mortgage on the first home. A mortgage refinance will provide for a down payment on the second, and perhaps some extra cash to cover the bills temporarily. If you choose to tap into the equity on your first home with a line of credit, home equity loan, or refinance mortgage, do it before you list the property for sale. Lenders aren't interested in financing a home that's on the market.

Another option is a bridge loan, which provides short-term financing that's usually repaid by a certain date, or upon the occurrence of a specific event. In this case, that event would be the sale of your first home.

Talk with one of our partner lender before you start home shopping. If you have good credit, your lender will be motivated to help you develop a financing strategy to make your home purchase go as smoothly as possible.

If you are interested in looking in to your next move give us a call we would love to help you out.

A buyer's market is technically defined as: "A market condition characterized by an abundance of goods available for sale."

The in-depth definition from the same source is: "When a buyer's market exists in commodities, the buyer is able to be selective in purchasing contracts, as there are many individuals wishing to sell. Furthermore, these buyers will generally be able to purchase contracts at lower prices than those that were previously prevalent."

The simple version is: when no one else wants a product of value -- buy it, because the price will be lower whereby you'll be able to maximize your investment for future gain. In essence -- buy low, sell high.

When it comes to purchasing real estate, it's not as easy as investing in your 401K or savings account. Those are simple. You can select as little as $1 to invest each month or as high as the law will allow -- thousands per year.

Most people really don't worry about how the stock market ebbs and flows as they are using the practice of dollar cost averaging to invest: "Dollar cost averaging is the practice of investing or saving money at specific times, regardless of market conditions or your personal financial outlook," according to a beginners guide to investing from About.com. The idea is that if you keep investing over the market levels (low and high) you will, through the law of averages, make money in the long haul.

The challenge with that type practice in real estate is that you can't slip into real estate investing. We don't buy our housing investments month after month with prices up and down. Instead, we slap down the down payment when it's time to buy. And wherever the market is, is where we start.

The best strategy for real estate and the best way to make money in real estate is to buy low, when the conditions are in the favor of the buyer to buy. Your start-up purchase is where you "begin" your investment growth -- and that's why I submit to my buyer friends the above headline question, again: "It's a buyers market. So when are you going to buy?"

Today in many markets you can by a house for 5 to 10 percent below asking price. For a $300,000 purchase, that's between $15,000 and $30,000 off your mortgage. On a 30-year fixed rate mortgage at 6 percent, that reduction in mortgage amount would save about $180 per month (more than $2,000 per year). In addition, many sellers are willing to help with closing costs just to sell their house.

Its a Buyers Market The Choice is yours!