Use It Before You Lose It…..

Terry Booth — Mon, 01 Jun 2009 15:02:23 +0000

First time Buyers across the country can now take advantage of the FHA program that allows qualified buyers to NOW use the $8,000 tax credit towards their down payment, their closing costs, or to pay down their interest rate. I say “NOW” because until May 29, 2009, first time homebuyers had to wait until AFTER they closed on their new home to apply for tax credit…with the new changes, FHA now permits lenders to provide a short-term bridge loan to buyers.

“The ability to use the tax credit at closing should have a meaningful impact on home sales and will allow thousands of families to achieve the dream of homeownership” reports the National Association of Realtors President, Charles McMillan.

But there is a catch….You must CLOSE on your loan BEFORE November 30, 2009. So…to all of you first time homebuyers…now is the time to get off the fence. I know committing to your first home can be scary, but with the abundance of inventory, reduced prices, historically low interest rates and now the availability of the tax credit at closing…there is no better time to buy.

Until next time….

It’s Easy Going Green

Terry Booth — Mon, 20 Apr 2009 14:29:11 +0000

We know there is a lot of talk about energy-efficiency and better built homes these days. The National Association of Home Builders has created a Green Program to provide standards that ensure energy efficiency, water and resource conservation, sustainable or recycled products, and indoor air quality are incorporated into the everyday process of home building. But not all of us can rush out and purchase one of these newer efficient homes. So…what can we do to improve our current homes? Here are seven things you can do this weekend to save water, energy, and money on your utility bills.

Plant a tree or two. Solar heat absorbed through the windows and the roof can heat up a house and make your air conditioner work harder. Leaves absorb and reflect the sunshine, making the air temperatures directly under a tree about 25*F cooler than air near your driveway or sidewalks. Installing shade trees can keep a home cooler and reduce your energy bills. To block heat in the summer but let much of it in during the winter months, choose deciduous trees, which lose their leaves in the winter. Planting a tree to shade the air-conditioning unit can increase its efficiency by as much as 10%.
Install shrubs and groundcovers. They will shade the ground and pavement around the house, which will, in turn, cool outside air before it reaches your home’s walls and windows. Putting up a trellis laced with climbing vines can also shade a patio or deck.
Buy a rain barrel. It will catch the water as it runs off your roof; you can then use it to water your plants, irrigate your yard, wash your car. Rain barrels are available at many of the big box stores and are reasonably priced.
Irrigate your plantings early in the morning. The water will soak into the soil instead of evaporating with the heat of the sun.
Install a irrigation system. It doesn’t have to be a fancy irrigation system…something as simple as soaker hoses does the trick. Soaker hoses distribute the water to the plants slowly so that it allows for better absorption.
Make friends with the caulking gun. It is important to seal off gaps found on the inside and outside of your home….this will prevent the warm air from seeping out in the winter, and the cooler air escaping your home during the summer. Inspect your doors, window frames, outdoor water faucets, dryer vents, and other areas for air leaks. There are many different types of caulk on the market. Make sure you select the proper type for the job.
Replace outdoor lightbulbs. Using the newer compact fluorescent bulbs will not only trim your utility cost, but will prevent you from having to change bulbs as often. To take it a step further, why not install solar-powered outdoor lights, which store sunlight during the day for a night-time glow.

Do you have any other ideas for going green? Let me hear from you.

Until next time….

Do You Qualify For The $8,000 Homebuyer Stimulus Package?

Terry Booth — Mon, 13 Apr 2009 14:27:57 +0000

It’s been all over the news…First time homebuyers rejoice….you might be eligible for a whopping $8,000 tax credit. So..what is the hook? Let’s take a look at some of the fine print.

1. First time homebuyers are eligible. For purposes of the $8,000 tax credit, a “first-time homebuyer” is defined as any individual ( or spouse) with no present ownership interest in a principal residence during the past 3 years. Even if a taxpayer owned another principal residence in the past, he or she can still qualify as a “first-time homebuyer” as long as the taxpayer transferred title to previous residence over three years ago.

2. What constitutes a “principal” residence under the $8,000 tax credit? A principal residence is generally the home the taxpayer lives in the majority of the time. It must be located in the United States. To qualify for the tax credit, the property can be new construction or a resale. It cannot, however, be a vacation home or rental property.

3. Do you have to purchase a home within a certain time-frame? Yes. A “purchase” for purposes of this tax credit is defined as an acquisition. An “acquisition” generally occurs when the property closes and title to the property transfers to the Buyer, and not when the purchase contract is signed. In order to be eligible for the $8,000 tax refundable tax credit, you must purchase AND close on your primary residence between January 1, 2009 and November 30, 2009. For example, if you enter into a contract to buy a property on October 25, 2009 but do not close on the property until December 5, 2009, you will not qualify for the tax credit, because, based on the law, acquisition did not occur before November 30, 2009.

4. Do all “first-time homebuyers” get the maximum $8,000 tax credit? No, the amount is based on several things: purchase price and income. The maximum tax credit for an individual first time buyer is 10% of the purchase price, not to exceed $8,000. For instance, if you purchased a home for $50,000, the maximum amount you would be eligible for would be $5,000; however, if you purchased a home for $80,000 or more, the maximum amount you would be eligible for would be $8,000. The “first-time homebuyer” tax credit is subject to certain income restrictions. The tax credit starts to phase away for an individual with a modified adjusted gross income from $75,001 to $95,000 ( $150,001 to $170,000 for joint filers). The tax credit is eliminated completely if an individual’s modified adjusted gross income is over $95,000 ( $170,000 for joint filers).

5. Do you have to repay the $8,000? No, the tax credit does not need to be repaid if the buyer owns and resides in the property for at least 36 months. If the Buyer disposes of the property or ceases to be primary residence within 36 months of purchase, the buyer will be required to repay the tax credit.

6. How does a first-time homebuyer apply for the tax credit? A first time buyer may claim the tax credit on their federal tax returns using IRS Form 5405, which is available at http://www.irs.gov/pub/irs-pdf/f5404.pdf. If you have already filed your 2008 taxes, you can file a amended return and include the above form.

What a great time to buy!…Historically low interest rates, affordable housing prices, loads of inventory to choose from…PLUS up to $8,000 tax credit. Take advantage of this stimulus package…and enjoy the benefits of homeownership.

Until next time….

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How Long Should It Last?

Terry Booth — Mon, 23 Mar 2009 20:53:42 +0000

Replacing a home’s windows, appliances, or roofing can be pricey. So knowing approximately how long before the refrigerator is likely to stop working or the roof might spring a leak can have value to both Buyers and Sellers. Buyers may want to factor in replacement costs or aging mechanicals when making an offer. Homeowners can use this information to decide if they should replace a component before a move. Here is a handy reference to some common household items that have a shelf life. The true longevity of any household material depends on maintenance, use, quality of installation, and climate conditions, so use these averages as a general guide.

5-10 Years

Security systems: 5-10 years

Heat and smoke detectors: 5-10 years

Dishwashers: 9 years

Microwave ovens: 9 years

Carpet: 8-10 years

10-20 Years

Aluminum windows: 15-20 years

Asphalt shingle roofs: 20 years

Faucets, kitchen sinks: 15 years

Gas ranges: 15 years

Cultured marble tops: 20 years

Dryers and refrigerators: 13 years

Air conditioning units: 10-15 years

Interior and exterior paints: 15+ years

Electric or gas water heaters: 10 years

Air conditioners: 10-15 years

Furnaces: 15-20 years

30-50 Years

Thermostats: 35 years

Wooden windows: 30 years

Wood shake roofs: 30 years

French interior doors: 30-50 years

50-100 years

Slate, copper, and clay and concrete roofs: 50+years

Copper gutters: 50+years

Kitchen cabinets: up to 50 years

Modified acrylic kitchen sinks: 50 years

Vinyl floors: 50 years

100 years or more

Brick siding: Lifetime of home

All wooden floors: Lifetime of home

Cellulose insulation material: 100+ years

Until next time….

Driving Home Goodwill Donations, One Bag at a Time

Terry Booth — Mon, 16 Mar 2009 01:35:40 +0000

Have you ever met someone and then realized that although it started out as a chance meeting, something good was going to materialize? I was out on a routine Listing Appointment, visiting a lady whose current listing had recently expired. I was hoping that she would decide to re-list her home, and that she would choose me to represent her as her Realtor. We conducted our business, and then, as I was walking out the door, we began to speak about what she does for a living….Suzanne wears her passion on her sleeve, and it wasn’t long before she had me convinced that teaming up, we could do some good for Goodwill. Suzanne is the Public Relations Manager for Goodwill Industries, representing the Middle Tennessee area. Listening to her speak about what Goodwill does for the community, how it gives back, how it educates and hires those individuals who might not find work elsewhere, I knew that I wanted to help…and as luck may have it, I am the Chairman for our Culture Committee at Keller Williams, responsible for finding new ways to let our agents give back to the very community that supports us as Realtors.

My fellow committee members and I took a field trip to the distribution center and were amazed at the number of workers it takes to run an organization like this. It was explained to us how the clothes and other household articles are sorted, tagged for resale, and prepared for shipment to Middle Tennessee Goodwill stores. This is a huge effort. All of these employees have a job because of ordinary citizens like you and me who make donations to Goodwill. When people donate and shop at Goodwill, they make an economic investment in their communities.

Donations are down this year and I am asking for your help. Keller Williams Realty is having a donation drive the entire month of April, 2009. This is the perfect time to clean out your closets and get rid of unwanted clothing and small household items….perhaps you are moving and need to get rid of some furniture. Call me…I will make arrangements for Goodwill to pick up any large items that you want to donate. You can drop off bags of clothing at my office in Brentwood or just call me…I will come to you.

This is the time in our Country’s existence when we need to be there for our fellow man. We need to say I have more than I can use…let me share. Please, look through your closets and share….

Until next time….

I’m a responsible homeowner….what’s in it for me?

Terry Booth — Tue, 10 Mar 2009 00:40:15 +0000

It seems as though everyone but the responsible homeowner was getting a piece of the government’s money, and American’s were becoming outraged by the country’s spending. Bailout money was being handed out like candy, and corporations and Wall Street were the first in line. We are already seeing that some of these same corporations are back in line, waiting for another hand-out. The housing market is in need of a help. Home prices are dropping…foreclosures are at record highs. We have asked the Government for help. Obama has revealed his new mortgage bailout. Some of the highlights are:

Who qualifies? $75Billion dollars has been allotted to reducing mortgage payments for “at-risk” homeowners. This program is only available to owner-occupied, principal residences with mortgages originated prior to January 1,2009. To qualify, a borrower’s monthly mortgage payment must exceed 31% of their monthly gross income. They must also be able to proof some sort of “financial hardship”, such as loss of income which puts them at risk of default. One key element of this bailout is that YOU DO NOT HAVE TO BE DELINQUENT ON YOUR MORTGAGE TO QUALIFY. One key ingredient of this plan is that your mortgage must be guaranteed by Fannie Mae or Freddie Mac. If it is not guaranteed by either of these government agencies, then you will not qualify for this bailout plan.

What are the benefits of participating in the Plan? If you qualify for the plan, lenders will work with you to reduce your monthly payment by either lowering your current interest rate, thus reducing your monthly payment to be no more than 31% of your gross monthly income, or, in severe cases, increasing the term of your current mortgage to 40 years, reduce your interest, and even reduce your principle balance if you are “upside-down” on your loan. You need to be prepared to “jump through hoops” with all the documentation that the government and lender are going to require.

I don’t qualify. How does this help me? Many Americans are frustrated that those people who made reckless decisions are getting the benefit of the bail-out dollars. But what we must remember is that it is important for all of us to keep our neighbors in their homes since foreclosures can force property values to decrease quickly. Falling property values affect us all.

If your current mortgage is an adjustable rate mortgage, I urge you to try to refinance to a fixed rate, and if you currently have a fixed rate mortgage, it is a great time to refinance to a lower interest rate. Take advantage of today’s historically low rates. If you have VA benefits, it is a great time to use them. With plummeting home values, many American’s have seen a reduction in their equity. Without having 20% equity in your home, you will be forced to pay PMI (Private Mortgage Insurance) which can increase your monthly premium by $100+ dollars every month. With VA, you do not have any PMI, so home equity is not needed to refinance. Contact your Lender to discuss ways to lower your monthly payment. You might end up saving hundreds of dollars each month!!

Until next time….

The Scoop on a Short Sale

Terry Booth — Sun, 01 Mar 2009 22:01:47 +0000

The phrase “Short-Sale” is getting quite a bit of face time. Just turn on the TV and you can hear reporters talking about the increasing number of short sales throughout the city…or pick up a local newspaper ( if your city is lucky enough to still have a daily newspaper) and read about short-sales and foreclosures. We keep hearing this term “short-sale”, but do we really know what it means?

What is a short sale?

The word itself is quite misleading; some assume that “short” means quick, which implies a quick closing. But what it really means is that the Homeowner is trying to sell his home for less than what he owes the Mortgage Lender. Let’s say that a Homeowner really needs to sell his home and owes $300,000 to his Lender, but that the current market says that his home is only worth $250,000. That is $50,000 less than what he owes…tack on additional monies to cover commissions that must be paid and closing costs, and the Homeowner is really in the red. Because a short sale results in the mortgage lender losing money on a property that is secured by a mortgage, these transactions must be done with full participation of the Lender. So…what does a Homeowner due if faced with a similar situation?

How to Get your Lender to Agree to a Short Sale

Approach your Lender as soon as you think you might request a short sale. If you are struggling to make your monthly mortgage, immediately list your home with a qualified Realtor. If the Realtor suggests that your home will likely sell for less than what is owed on it, immediately contact your Lenders “short-sale” dept. and request a short-sale package.
Authorize your Realtor – in writing – to work and to negotiate directly with your Lender.
When your Realtor receives an offer on your home, make sure the Realtor includes a cover letter explaining the buyer’s qualifications, and amount of down payment. Disclose any other pertinent information to Lender to help them make a decision.
Your Lender will require a hardship letter from you. Pour your heart out to lender. Present your finances in the worst possible light. If you lost your job, had a death in the family, or have any other circumstances, let the Lender know. Let them know that you are considering bankruptcy. Once you take the first step to bankruptcy, the foreclosure process is stopped and banks would rather resell your home at a loss than go through bankruptcy procedures and then try to sell it.
Make sure your “short-sale” package is complete when you send it back to Lender. Short sales generally take a considerable amount of time so you want to make sure that you give the Lender ALL the information that they require in order for them to make an informed decision. At a minimum the Lender will want:

The offer to purchase your home, including the Buyer’s pre-approval letter
Your Hardship Letter
A balance sheet showing your monthly income and expenses
Copies of your Bank statements
A Net Sheet from your Realtor showing all the closing costs that must be paid for your short sale to close
Supporting documentation, including 2 months pay stubs
Your last 2 years income tax returns.

Having a “short-sale” on your credit report is considered a small blemish compared to a foreclosure, which can keep you from purchasing another home for up to 10 years. If you see that you are having difficulty in making your mortgage payments, take the initiative and contact your Lending institution or a Realtor. Don’t delay!!

Until next time….

Putting Humpty Dumpty Together Again….

Terry Booth — Tue, 04 Nov 2008 13:11:25 +0000

Today we can participate in the making of history….It is Election Day in America…a day where either an African-American man will become the next President of the United States or a woman will be elected as Vice President.

“America is too great for small dreams”

Ronald Reagan ( 1911- 2004)

Both Obama and McCain have big dreams for our country’s future. Both men are committed to dedicating the next 4 years of their lives to securing our freedoms and our economy. Their words have inspired, comforted, persuaded and motivated us. It is with their words and their actions that we proceed to the polls to cast our votes. I do not know which man is right for the job, but I do know which one is wrong. (for me).

“In a moment of decision, the best thing you can do is the right thing. The worst thing you can do is nothing”

Theodore Roosevelt ( 1858-1919)

Voting is a right..it is a priviledge…it is your duty! Please get out and vote today. Make history. Have a voice. Do not let the long lines at the polls deter you. Be a part of history!

Until next time…

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Fall in love with Fall…

Terry Booth — Mon, 13 Oct 2008 00:35:27 +0000

My favorite time of year is Fall. I love the crisp mornings, the falling leaves and early evenings that make cozying up on the couch in front of the TV very appealing. But my most favorite thing about Fall is eating my Homemade Vegetable Beef Soup. I have shared this recipe with several of my clients and they can’t stop talking about it. So, in the spirit of sharing, I give you…

Homemade Vegetable Beef Soup

Sure to please even those who don’t like soup!

6 cups beef broth ( I use large container of Swanson Beef Broth)

1 can ( 15 oz) tomato sauce

1 can (14-16 oz) petite diced tomatoes

1-1/2 – 2 cups diced carrots

1-1/2 – 2 cups diced potatoes

½ cup diced onion

½ cup diced celery

½ cup diced bell pepper

2 ears fresh yellow corn, cut off cob ( If fresh corn not available, use frozen)

1-1/2 – 2 cups fresh green beans ( cut into bite size pieces).

1-1/2 lbs. stew meat or sirloin cut into bite size pieces.

Salt and Pepper to taste

1. In large saucepan or Dutch oven, combine ALL ingredients.

2. Bring to boil. Reduce heat, cover and simmer for 1-1/2 hours or until meat cooked and potatoes tender.

Serve with cornbread muffins.

I hope you take time to prepare this easy dish, sit around the table with family and friends, enjoying good food and good conversation!

Please leave me a comment below and let me know your thoughts!

Until next time…

Nashville…A Spirited City

Terry Booth — Mon, 06 Oct 2008 01:28:48 +0000

At Halloween, ghosts and and their stories are plentiful and Music City is no exception. Nashville has a long history of hauntings, from the Tennessee State Capitol Building to the Grand Ole Opry and Ryman Auditoirum.

Employees at the Opry House contend that the late Roy Acuff has never really left the building and frequently refuses to allow the curtains to be drawn on his beloved Grand Ole Opry. After a performance, when the artists and fans have already headed home, employees report that they will sometimes turn off the lights and prepare to lock the doors, only to hear the sounds of the stage curtains opening. A quick check will reveal the curtains are indeed open and the lights are on, as if the King of Country Music himself were about to take the stage for another show.

Across town at the Opry’s former home, the Ryman Auditorium, are additional reports of unusual activity. The most famous ghost of the Ryman may also be country music’s busiest. Several Ryman employees report seeing white apparitions, but a few claim that they’ve come face to face with the actual ghost of Hank Williams Sr. Some say they have encountered Williams backstage, while one employee seems to think the white mist she saw onstage was Williams singing. A recent visitor is convinced that he ran into Williams in the alley between the Ryman and Tootsie’s Orchid Lounge, another of Williams’ haunts.

Music Row has its fair share of hauntings. Although the building that housed the old Gilley’s nightclub has been demolished, some Music Row veterans recall it as the site of a bizarre wrestling match between the club manager’s son and a spirit dressed as a Civil War soldier. The soldier disappeared, but the young man’s black eye was very real. At the offices of a prominent recored company, lights often turned on and off in empty offices, doors opened and closed unexpectedly, and locks changed themselves. All of the occurences so unnerved the employees that the label executives finally enlisted pyschics to cleanse the building of negative spirits.

Nashville offers a 90 minute walking ghost tour of our downtown streets. To find out more about the tour, visit www.NashvilleGhostTours.com. Have a safe and Happy Halloween!

Until next time….