(Money Magazine) -- Plenty of forces, from overly cautious lenders to inaccurate appraisals, are wrecking real estate deals right now. But one of the biggest roadblocks to getting a house sold these days is the disconnect between buyers and sellers.

In general, sellers have gotten more realistic in pricing their homes than they were right after the housing bubble burst, but agents say that many still don't grasp how much they must concede to close a deal. And buyers are still spraying lowball offers around in hopes that sellers will be desperate enough to bite.

Take such unreasonable expectations, multiply by two, and what do you get? "A standoff," says Glenn Kelman, CEO of real estate brokerage Redfin.

With the busy summer home-sale season drawing to a close, there's little time to waste. Whether you're trying to unload your place or land a new one, follow these dos and don'ts to negotiate the best deal -- fast.

Don't say: "I'll pay 85% of your asking price and not a penny more."

Instead: Look for homes that are fairly priced and make a reasonable offer. "Coming in about 10% below list is a good starting place for negotiations now," says Denver real estate broker Jeff Fogler. Yes, you have the upper hand in most markets, but the average homebuyer is paying only 2.7% below list price (see the chart). Set your expectations accordingly. You can always ask if the seller is willing to bridge a price gap in other ways -- for example, by picking up your closing costs (which can run $7,500 on a $300,000 house).

Don't say: "I haven't put my own place on the market yet."

Instead: List your current home before you start shopping seriously for the next one. Because it takes almost three months to move a house these days, sellers are loath to write home-sales contingencies into purchase contracts. You'll have far more leverage if you've gotten rid of your house before you start negotiating: Sellers know there's less chance of the deal falling apart. (Prequalifying for a mortgage helps too.) What's more, you'll know exactly how much money you can put into your new digs.

Don't say: "This is my dream house."

Instead: Stop imagining the great parties you'll throw there and gird yourself to walk away if the seller won't make reasonable concessions. Your ability to abandon negotiations is your most powerful bargaining chip. Given that plenty of other homes are on the market now, finding another place to love shouldn't be too hard. You might let the seller know that. Nicely.

Don't say: "You're offering how much? Forget you!"

Instead: When bidders lob low-balls at you, thank them for their interest -- and ask that they come back with earnest offers. "If you become offended, enraged, or unreasonable, you've blown any chance at negotiation," says Warwick, R.I., real estate agent Ron Phipps. These days many buyers are just testing you to see how big a discount they can get. Point the bidder to comparable recent sales that support your list price. (Received several super-low offers? Check the comps to make sure your price isn't too high.)

Don't say: "I didn't know the deck was rotting."

Instead: Pay a few hundred dollars to get your house inspected before you put it on the market. Then arrange to make any necessary repairs yourself. (In most states the law requires you to disclose to potential buyers any defects of which you're aware.) "Taking care of any inspection issues upfront helps sellers limit the points that buyers can negotiate on," says Pat Lashinsky, CEO of the national brokerage ZipRealty.

Don't say: "It might take us a while to move out."

Instead: Make sure to tell buyers -- especially those who might have children starting school this month -- that you're willing to scram pronto, if possible. That will help you stand out from any short sales in your area, which may have lower list prices but can take months to close. "If the buyers have a strict time limit, they're going to pay more money to get into a house quickly," says Ellen Klein, a realtor in Rockaway, N.J. More money plus more speed: That's what it's all about.  

In a typical real estate transaction, capital gain taxes are due on the gain from the sale of investment real estate. A 1031 Exchange is used by real estate investors to defer capital gain taxes. A 1031 Exchange allows a property to be sold and replaced without the payment of taxes. A 1031 tax exchange is basically the exchanging of "like-kind" properties of equal or greater value without paying taxes.

In real estate, "like-kind" property is property used as a trade or business as described in IRS Section 1231, or property held as investments as described in IRS Section 1221. Some of the investment properties that qualify for an exchange are rental homes, apartments, office buildings, shopping centers, industrial property, motels, land, farms, ranches, etc. "Like-kind" does not mean that you have to exchange a like rentsl property for another like rental property. You are allowed to mix and match. As long as you are completing a structured exchange, the IRS allows you to exchange raw land for a shopping center, a condo rental for an apartment building, etc. You are allowed to exchange real property used for business, trade or investment purposes for any other type of business, trade or investment properties.

Personal residences do not qualify for "like-kind" property, so they cannot be used for an exchange. With your personal residence you can qualify for the $250,000\$500,0000 Capital Gain Tax Exclusion, which is better than a 1031 Exchange. Qualified personal residences are tax-free, not just tax-deferred.

With the 1031 exchange the gain can't be taxed. Your income taxes are deferred until the day you decide to sell your property and pocket the sales proceeds. You can avoid ever paying income taxes at all by continuing to exchange properties throughout your entire lifetime. With proper estate planning, you can pass your investment properties to your heirs tax-free.

An exchange must be performed by a qualified intermediary. A qualified intermediary does not have to be an accountant, but they must be a neutral party. They keep track of the sales of the property you will relinquish, as well as the replacement property purchase. The intermediary keeps all of the funds from the sale of the relinquished property in an interest bearing joint trust account, until the settlement of the replacement property. The funds must be held by the intermediary in order to remain tax free.

Guidelines for a 1031 Exchange are as follows:

• You have 45 days from the sale of the relinquished property to identify your replacement property, and you have 180 days from the sale of the relinquished property to settle.
• The value of the replacement property must be equal or greater than the value of the relinquished property(s).
• The equity in the replacement property must be equal or greater than the equity in the relinquished property(s).
• The replacement property(s) must have an equal or greater debt than the relinquished property.
• All of the net proceeds from the sale of the relinquished property must be used to purchase the replacement property(s).
• Entities, such as corporations, trusts, partnerships, LLC' etc. may do a 1031 exchange. They must follow this rule: the tax return that holds title to the relinquished property must be the same tax return that takes title to the replacement Property.

You have 45 days to identify your replacement property after you have sold the relinquished property.  The investor can identify up to 3 replacement properties. You also need to settle on your replacement property within 180 days of the sale of your relinquished property. If you cannot identify a replacement property within 45 days or settle within 180 days of the sale of the relinquished property, your fund will now be taxable. The IRS has no exceptions to this rule. These timelines cannot be extended.

One of the biggest 1031 exchange rules that must be followed is that the property being sold has to be equal to or lesser than in value than the new property being obtained. This means if you have an investment property worth $200,000, you can only do a 1031 tax exchange on another property that is worth $200,000 or more. There are absolutely no exemptions from this 1031 exchange rule.

One of the disadvantages to an exchange is that you will have a slightly lower depreciation schedule when you acquire your new properties. Your new property will have the same tax basis as the previous property, which will reduce your yearly depreciation of your new higher valued property.
Although it is not suggested, a replacement property can be converted to a primary residence, as long as you follow the holding requirements of Section 1031. The big concern with the IRS is whether you can prove that you had the intent to hold the property for rental, investment or business use. If your home qualifies for a personal residence, you can take advantage of the home owner's exemption (up to $250,000 or $500,000 for a couple). There is a five year holding period requirement for the personal residence tax exclusion.

An owner that is planning on doing a 1031 exchange should only do so after seeking help from a qualified intermediary, accountant, and attorney.
 
Examples:

Example #1:
John and Mary sell their relinquished property for $200,000. After paying the mortgage on the relinquished property, the balance of $80,000 is transferred to the intermediary. If they buy their New Property for $180,000, they bought down by $20,000. The buy down does not kill their exchange, but the $20,000 difference between the exchanging properties is taxable. The IRS calls this taxable amount boot.
 
Example 2:
10 years ago, Bob purchases an apartment building for $600,000. The IRS allows the depreciation of a property over 27.5 years, which allows for a depreciation of $21,818 per year. After 10 years, the property has depreciated by $218,810. Bob has also made $100K in property and land improvements.

His taxable basis is as follows:

If Bob sells his property for $1 million dollars his federal tax will be as follows:

Calculated Taxes:

Capital Gain from Depreciation Recapture:($218,810 X 25%)	$54,702
Long-term Capital Gain ($300,00 X 20%)	$60,000
Total Federal Tax:	$114,702

                                                                                                      

In this case, a 1031 Exchange would defer $114,702 in capital gain taxes.
 

IRS Helpful Links: IRS Tip - Like-Kind Exchanges - Real Estate Tax Tips

Tips on How to Fix Your House Up to Sell

Curb appeal has always been important for homesellers. With the vast majority of today's homebuyers starting their search on the Internet, the appearance of your property is more critical than ever. You only have a few seconds to catch their attention as they scroll through listings online to get them to stop and take a closer look.

But the role of curb appeal goes beyond just making a good first impression. The way your house looks from the street can impact its value. It can also shorten the time it takes to sell your house.

We asked real estate agents, appraisers, home stagers, landscape designers, and home inspectors which curb appeal projects offer the most value when your house is on the market, both in terms of its marketability and dollars. Here is what they told us:

1. Paint the house.

Hands down, the most commonly offered curb appeal advice from our real estate pros and appraisers is to give the exterior of your home a good paint job. Buyers will instantly notice it and appraisers will note it on the valuation.

"Paint is probably the number one thing inside and out," says Frank Lucco, managing partner of Houston-based IRR-Residential Appraisers and Consultants. "I'd give additional value for that. If you're under two years remaining life (on the paint job), paint the exterior because it tends to show wear badly." 

Just make sure you stay within the range of accepted colors for your market. A house that's painted a wildly different color from its competition will be marked down in value by appraisers.

2. Have the house washed.

Before you make the investment in a paint job, though, take a good look at the house. If it's got mildew or general grunge, just washing the house could make a world of difference, says Valerie Torelli, a California real estate agent with a background in accounting.

Before she puts a house on the market, Torelli often does exterior makeovers on her clients' homes, a service she pays for herself to get higher selling prices. Overall, she says her goal is to spend less than $5,000, with a goal of generating an extra $10,000 to $15,000 on the sale price.

Torelli specifies pressure-washing-a job that should be left to professionals. Pressure washing makes the house look "bright and clean in addition to getting rid of unsightly things like cobwebs, which may not be seen from the yard but will detract from the home's cleanliness when seen up close," she says.

The cost to have a professional cleaning should be a few hundred dollars-a fraction of the cost of having the house painted.

3. Trim the shrubs and green up the yard.

California real estate agent Valerie Torelli says she puts a lot of emphasis on landscaping, such as cutting down overgrown bushes and replacing them with leafy plants and annuals mulched with beautiful reddish-brown bark. "It runs me $30 to $50," says Torelli. "Do you get a return on your money? Absolutely. It sucks people in."

You also don't want bare spots. Take the time to fertilize the yard, throw out some grass seed, and if need be, add some sod.

4. Add a splash of color.

It could be a flower bed of annuals by the mailbox, a paint job for the front door, or a brightly colored bench or an Adirondack chair. "You can get a cute little bench at Home Depot for $99," Torelli notes. "Spray paint it bright red or blue and set it in the yard or on the front porch."

It's not a bad idea, but don't plan on getting extra points from an appraiser for a red bench, says John Bredemeyer, president of Realcorp in Omaha. "It's difficult to quantify, but it does make a home sell more quickly," Bredemeyer says. "Maybe yours sold a couple weeks faster than the house down the street. That's the best way to look at these things."

5. Add a fancy mailbox and house numbers.

An upscale mail box and architectural house numbers or an address plaque can give your house a distinctive look that stands out from everyone else on the block. Torelli makes them a part of her exterior makeovers "I've gotten those hand-painted mailboxes," she says. "A nice one runs you $40 to $50." Architectural house numbers may run as high as a few hundred dollars.

6. Repair or clean the roof.

Springfield, Va.-based home inspector and former builder Reggie Marston says the roof is one of the first things he looks at in assessing the condition of a home. He'll look at other houses in the neighborhood to see if there are a lot of replaced roofs and see if the subject house has one as well. If not, he'll look for curls in the shingles or missing shingles. "I'm looking at the roof for end-of-life expectancy," he says.

You can pay for roof repairs now, or pay for them later in a lower appraisal; appraisers will mark down the value by the cost of the repair. That could knock thousands of dollars off your appraisal. According to Remodeling Magazine's 2009-2010 Cost vs. Value Report, the average cost of a new asphalt shingle roof is more than $19,000.

"Roofs are issues," Lucco says. "You won't throw money away on that job. You gotta have a decent roof."

Stains and plant matter, such as moss, can be handled with cleaning. It's a job that can often be done in a day for a few hundred dollars, and makes the roof look like new. It's not a DIY project; call a professional with the right tools to clean it without damaging it.

7. Put up a fence.

A picket fence with a garden gate to frame the yard is an asset. A fence has more impact in a family-oriented neighborhood than an upscale retirement community, Bredemeyer says, but in most instances, appraisers will give extra value for one, as long as it's in good condition. "Day in a day out, a fence is a plus," Bredemeyer says. Expect to pay $2,000 to $3,500 for a professionally installed gated picket fence 3 feet high and 100 feet long.

8. Perform routine maintenance and cleaning.

Nothing sets off subconscious alarms like hanging gutters, missing bricks from the front steps, or lawn tools rusting in the bushes. It makes even the professionals question what else hasn't been taken care of.

"A house is worth less if the maintenance isn't done," Lucco says. "Those little things can add up and be a very big detractor. When people say, 'I'd buy it if it weren't for all the deferred maintenance,' what they're really saying is, 'I'd still buy it if you reduce the price.'"  

For Your Clients: Short Sale Myths De-Bunked

"The CARD Act is a good thing in that it seeks to eliminate unfair practices and make the entire credit fee practice more transparent," said Brad Stroh, co-founder and CEO of Bills.com. "However, for many consumers, it will likely mean more headaches in managing their credit card account, and at the end of the day these changes could actually lead to higher fees or reduced lines of credit."

5 sensible credit card management tips:

1. Maintain prompt payment status with your credit card company. Demonstrating that you can responsibly meet your current credit obligations is the number one behavior that will impact your standing with the credit card company and your credit score. By missing or being late on a payment, you will incur fees, potentially increase your interest rate and lower your overall credit score.

2. Pay down high balances to improve credit card utilization. This will show that you can responsibly manage your credit limit, minimizing the chance of higher tiers of interest rates or reductions in credit limit. Additionally, better credit utilization will help boost your credit score.

3. Maintain activity on your credit card accounts. By using the revolving credit lines that you need or want to keep and promptly paying on them, you can help avoid cancellation of those credit card accounts. Additionally, some credit card companies are introducing inactivity fees. This behavior will avoid those fees and help boost your credit score, while having a long existing credit line closed could lower your score.

4. Avoid fees through responsible spending habits. Credit card providers will likely look to recoup revenue by charging fees for extra services. New regulations prohibit over limit provisions unless consumers opt-in to the service. Card providers could then charge consumers for this right. By remaining aware of credit limits and balances, consumers can avoid a need for these fees altogether.

5. New regulations do not apply to corporate or small business cards. This means some small business owners might consider using personal cards for business expenses because of fee and rate limitations. However, these owners should remain cautious because their personal credit scores could suffer in the event of missed payments or defaults.

"It is important to remember that these new regulations do not limit interest rates, they only make the communication with consumers more transparent," continued Stroh. "The best approach to these changes is to be proactive and adjust personal behavior to avoid negative implications."

For more information, visit www.bills.com.

Conduct a "draft check." Your heating dollars could be going out your windows, doors and electrical outlets. Check for air leaks throughout your home; check around doors, windows, fixtures, electrical outlets, wiring, plumbing and fireplace dampers. Draft-proofing is the least expensive energy efficiency investment with the biggest payoff.

Plug those air leaks. Seal leaks between doors or windows and their frames with weather stripping and between window frames and walls with sealant or caulk.

Install door sweeps on the insides of exterior doors. Cold air can seep in under doors. Solution: Door sweeps are cheap and keep the draft out. No sweeps available? Even a rolled up towel or blanket will help. And consider twin or dual draft guards on both sides of doors where you feel drafts.

Open curtains and other window treatments on your west- and south-facing windows during the day to allow sunlight to naturally heat your home, and close them at night to make it harder for warm air to escape. If you are purchasing new drapes, consider an insulated lining, which reduces both heating and cooling bills.

Freezing by your windows? If that's the case, and you've already plugged window leaks and can't afford new high-efficiency windows, consider purchasing a kit containing sheets of plastic film to tape over the insides of your windows. Use a hair dryer to create a tight fit.

Consider insulating drafty electrical outlets. Use light switch foam insulation pads and wall jack foam insulation pads on outlets on colder exterior walls.

You're not in the South Seas. Don't turn up the heat so high that you can be comfortable dressed in a T-shirt and going barefoot. Even when indoors, dress for winter weather and layer clothing so that you can keep the thermostat at a reasonable yet comfortable temperature. It's a good time to wear those sweaters you received as holiday gifts.

Consider a space heater for the room where you spend a lot of time. But keep in mind that this makes sense from an energy standpoint only if you reduce heating in other rooms.

Keep furnace filters clean. Check and change your filter every month during heavy-use winter months to assist air flow, so your system doesn't have to work harder to keep you warm.

Seal your heating and cooling ducts. In a typical house with a forced air system, about 20% of the air that moves through the duct system is lost due to leaks, holes and poorly connected ducts. Sealing and insulating ducts increases their efficiency, lowers home energy bills and can often pay for itself in energy savings. Insulate ducts in unheated areas such as attics, crawlspaces and garages with duct insulation that carries an R-value of 6 or higher. Also, a well-designed and sealed duct system may make it possible to downsize to a smaller, less costly heating and cooling system that will provide better dehumidification.

Let a programmable thermostat "remember for you" to lower the heat while your home is empty and/or overnight to reduce heating costs by up to 10%- and allow you to come home and wake up to a toasty, comfortable house.

For more information, visit www.ase.org.

Dan Steward
President
Pillar To Post
www.pillartopost.com

Enthusiastic new home buyers often stretch financially to cover a home's initial deposit, closing costs and any cosmetic touchups.

However, buyers frequently focus only on those first costs, overlooking the financial requirements of maintaining the home over time. Providing some guidance to your clients regarding realistic maintenance costs will help them transition smoothly into ownership of that house.

According to industry standards, homeowners should have 1% of the purchase price of their home in savings for improvements and surprise expenses. While this minimum will help ease through maintenance costs, a 2-3% cushion is far more prudent.

A home inspection will help prospective buyers better understand the condition of the house, gaining insights and recommendations from the inspector during the inspection. At Pillar To Post, we also deliver a detailed, computerized inspection report onsite, so buyers have a printed guide available for future planning.

A home inspector will estimate the age of major structural components and systems, providing the buyer an indication of each item's anticipated lifespan. A furnace, for example, often lasts between 12 and 15 years and a water heater lasts from ten to 12 years. Understanding the current age of any particular system will allow buyers to calculate approximately when they'll be due for major repairs or replacement.

LivingWithMyHome.com offers a list of approximate life expectancies of home components as well as cost estimates, useful as a tool for financial planning of homeownership. Our company, Pillar To Post, sponsors this site in response to questions from prospective home buyers across North America regarding how much they should plan to spend on ongoing maintenance costs.

Once the buyer has completed the home inspection, negotiated the price according to information gained in the inspection and possibly had the sellers repair or pay for needed upgrades, it's time to plan the maintenance budget for the future.

Home buyers should plan for big-ticket costs across a five-year timeline, budgeting for major expenses, such as roof repairs, new air conditioners or plumbing upgrades. The best plan is to sock away those funds, rather than relying on borrowing from banks. As the credit crunch has deepened, banks have nearly stopped offering home equity lines of credit, so counting on a loan for needed repairs is a risky strategy.

This brings us to timing of repairs-when small problems pop up, it's important to address them before they become large-scale projects. A minor leak on a window frame can seem innocuous, but with repeated rains that leak can turn into window rot and even mold.

Again, this is where preparedness in budgeting can make all the difference-the ability to correct a minor problem immediately will likely mean a lower-cost repair and a less-demanding repair job.

Buying a home is one of the largest investments most people ever make. Helping your clients plan successfully to have a strong, positive home-buying experience will create the most beneficial outcome possible for them and for you.

Now, back to the monthly expenses. Estimating these regular costs often trip up new home buyers as well. Many people, particularly former renters, are accustomed to paying rent and likely utilities, phone, Internet service and cable.

As a homeowner, however, there will be other utility costs such as water, sewer and trash collection. Then there are property taxes, homeowner's insurance and possible homeowner's association dues.

Home buyers can also have seasonal, recurrent expenses such as snow removal and lawn service that should also go into that five-year budget. Helping your customers understand not only how to find and purchase their ideal home, but maintain it as well is the value-add service you can provide that will benefit them for the future.

A real estate agent is a REALTOR when he or she becomes a member of the NATIONAL ASSOCIATION OF REALTORS, The Voice for Real Estate, the world's largest professional association. The term "REALTOR" is a registered collective membership mark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS and abides by its strict Code of Ethics.

Founded in 1908, NAR has grown from its original nucleus of 120 members to more than 1 million today. NAR is composed of REALTORS who are involved in residential and commercial real estate as brokers, salespeople, property managers, appraisers, counselors, and others who are engaged in all aspects of the real estate industry.

Members belong to one or more of 1,700 local associations/boards and 54 state and territory associations of REALTORS and can join one of our many institutes, societies, and councils. Additionally, NAR offers members the opportunity to be active in our appraisal and international real estate specialty sections. REALTORS are pledged to a strict Code of Ethics and Standards of Practice.

Working for America's property owners, the NATIONAL ASSOCIATION OF REALTORS provides a facility for professional development, research, and exchange of information among its members.

Check out the Public Awareness Campaign television and radio spots that encourage consumers to rely on the expertise and integrity of REALTORS.

The NAR advertising campaign runs February through November on network and cable television and network and satellite radio, helping consumers understand the real value of working with REALTORS. From their voluntary adherence to a Code of Ethics to their incomparable knowledge of real estate processes, REALTORS are the experts of residential and commercial property transactions.

February 12, 2010-Thirty-year fixed mortgage rates on Zillow Mortgage Marketplace are currently 4.81%, down six basis points from 4.87% at this time last week. The 30-year fixed mortgage rates hovered at or below 4.80% for most of the past weekend and neared 4.75% on Monday.

Zillow's real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers through the site, and reflect the most recent changes in the market. These are not marketing rates or a weekly survey.

The rate for 15-year fixed home loans is currently 4.27%, while the rate for 5-1 adjustable rate mortgages is 3.70%.

The volume of mortgage requests in the past week fell 9.4% from the prior week. Of last week's requests, 34.7% were for refinance loans, 63.5% were for purchase loans and 1.9% were for home equity loans. The prior week, 34.5% of requests were for refinance loans, 63.5% were for purchase loans and 2.1% were for home equity loans.

While the credit is not as important as staying in the Wallingford school district, where her younger daughter will enter sixth grade next fall, Mansfield says it will help make expenses associated with the move 'a wash.' "It will help with moving costs, and with getting this house ready for sale," said Mansfield, who has lived in the five-bedroom split-level Colonial she bought with her former husband nine years ago.

The house, which she says is far larger than what "two people and a small dog need," will list for under $525,000 and heads for the market Feb. 15, 2010.

Current homeowners buying a house between Nov. 7, 2009, and April 30 and who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight can qualify for the $6,500. It seems less is known about the repeat buyer credit. This incentive was added when the original $8,000 tax credit for qualified first-time buyers, which expired Nov. 30, was extended.

Houses purchased for $800,000 or less are eligible for repeat buyers. Single buyers with incomes up to $125,000 and married couples up to $225,000 may receive the maximum tax credit for both repeat and first-time purchases. The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Buyers earning more than the maximum are not eligible for the credit. If a binding written contract to purchase is in effect April 30, the purchaser will have until July 1, 2010 to close.

The 2009 credit for first-timers helped jump-start the sagging home market in the summer and fall, data show. Walt Molony, a National Association of Realtors (NAR) spokesman, said two million existing-home sales in 2009 could be attributed to the $8,000 first-time buyer credit. Although it is too early to measure the credit's effect on sales so far this year, Molony said NAR chief economist Lawrence Yun believes it will add 1.5 million sales to the tally.

The repeat-buyer credit was added to appease builders, who said the original did not offer enough time to purchasers of new houses, which take at least six months to build, to close on them. New homes accounted for only 7% of the tax-credit-based sales, Molony said.

The National Association of Homebuilders' Donna Reichle said, "We hear builders saying they are getting inquiries, but that's all so far. According to our economists, it's way too early," Reichle said. "If you look back at the passage of the original $8,000 credit and impact on housing starts, it took a couple of months, and that was in the spring as well."

Moody's Economy.com chief economist Mark Zandi says the credit will boost sales "modestly," however, by 300,000, with one-third trade-up buyers. "I don't expect the credit to be extended again," Zandi said. "Each time it is extended, it becomes less effective and thus more costly."

David Krieger, senior vice president and general manager of Coldwell Banker Preferred in Philadelphia, says he believes that "a very large increase in our listing inventory in January is a result of the $6,500 credit." Still, the $8,000 first-time credit remains the chief reason his company's home sales were 33% higher last month than in January 2009, he said.

Typically, repeat buyers are better off financially than first-timers, so a lot of repeat buyers realize from the start they don't qualify for the credit, Weichert Realtors agent Alec Schwartz said. "What they do realize, and what is getting more sellers to list, is that they understand that there are plenty of first-time buyers who qualify for the $8,000 credit out there, and they have a much better chance of selling their house and buying a new one than before," said Schwartz, Liv Mansfield's agent.

This is also true in the region's new-home market, said Wayne Norris, regional sales manager for Hanley Wood Market Intelligence. "Builders have experienced increased activity in recent months" attributable to the $6,500 credit and "the fact that many potential buyers were able to sell their houses" to those taking advantage of the first-time buyer credit," he said. The sense of urgency to make the tax-credit deadline and fears of rising interest rates will push new-home sales higher in the spring, Norris said.

This past November, Congress elected to expand the home buyer tax credit to repeat buyers after seeing the success the temporary financial incentive had on the housing market and overall economy. As a result, current homeowners who will have lived in their home for 5 consecutive years out of the last 8 may now be eligible to receive a $6,500 tax credit.

"The expanded tax credit offers a great financial opportunity for existing homeowners, particularly those looking to trade up," said James M. Weichert, president and founder of Weichert, Realtors, one of the nation's largest independent real estate companies. "Not only can you receive a large sum of money from the government, you'll also likely purchase your next home for less money and at a lower interest rate than you could have in years past or years to come."

To qualify for the tax credit, the repeat buyer must have signed a binding contract by April 30, 2010 and close on the home by June 30, 2010. Tax credit eligibility is subject to income limits, $125,000 for single buyers and $225,000 for couples. In addition, the sale price of the home being purchased can not exceed $800,000.

There is no requirement that existing homeowners must have sold their home to be eligible for the $6,500 tax credit. However, Weichert encourages existing homeowners who want to benefit from this incentive to move quickly, particularly those who prefer to first sell their current home before purchasing a new one.

"Typically, it takes three months or longer to sell a home. That's why it is critical repeat buyers put their home on the market right away. Otherwise they might not leave themselves enough time to both secure a buyer for their current house and find a new home by the April 30 deadline," added Weichert.

RISMEDIA, December 2, 2009-The weekly average rate borrowers were quoted on Zillow Mortgage Marketplace for 30-year fixed mortgages decreased seven basis points last week to 4.62%, down from 4.69% the week prior, according to the Zillow Mortgage Rate Monitor, compiled by real estate website Zillow.com. Rates for 15-year fixed mortgages fell four basis points to 4.19% from 4.23%, while 5-1 adjustable rate mortgages increased five basis points to 3.74%, from 3.69% the week prior.

The volume of mortgage requests last week fell 17% from the prior week. Of last week's requests, 49% were for refinance loans, 49% were for purchase loans and 2% were for home equity loans. There was no change in the mortgage type mix from the prior week.

Rates for 30-year fixed purchase mortgages fell further, with the average rate on Zillow Mortgage Marketplace at 4.52%. Thirty-year fixed mortgage rates varied by state. Ohio mortgage rates and North Carolina mortgage rates decreased the most, from 4.79% to 4.63% in Ohio and from 4.72% to 4.60% in North Carolina. New York mortgage rates (4.79%), Missouri mortgage rates (4.72%) and Illinois mortgage rates (4.72%) were the highest in the country, while Texas mortgage rates (4.52%) and Colorado mortgage rates (4.54%) were the lowest. California mortgage rates were the most requested among all states.

November 10, 2009-HomeGain.com, one of the first websites to offer Web-based free instant home values, announced that it has released the results of its nationwide home improvement and home staging Home Sale Maximizer survey. 

HomeGain's recent survey shows the top do-it-yourself home improvements that Realtors recommend to home sellers. HomeGain received responses from nearly 1,000 Realtors nationwide and configured a list of the top 12 do-it-yourself (DIY) home improvements that cost under $5,000 and benefit sellers most when they sell their homes. 

According to the HomeGain survey, the top five home improvements that Realtors recommend to home sellers based on cost and return on investment (from highest to lowest ROI) are: 

1. Cleaning and de-cluttering ($200 cost / $1,700 price increase / 872% ROI)
2. Home staging ($300 cost / $1,780 price increase / 586% ROI)
3. Lightening and brightening ($230 cost / $1,300 price increase / 572% ROI)
4. Landscaping ($320 cost / $1,500 price increase / 473% ROI)
5. Repairing plumbing ($385 cost / $1,250 price increase / 327% ROI) 

Cleaning and de-cluttering continues to rank as the top suggested home improvement (since the survey was originally conducted in 2000), recommended by 98% of Realtors, costing less than $200 and returning a value of nearly $1,700 to the home's sale price, or an 872% return on investment. 

"Many Realtors agree, especially in a buyer's market, that sellers who make these recommended home improvements often get their homes sold faster and at higher prices," stated Louis Cammarosano, General Manager at HomeGain. "We have customized our Home Sale Maximizer online home improvement tool to help identify and prioritize the projects that can increase the salability and selling price of a home." 

Rounding out the top 12, the list of low cost, do-it-yourself home improvements includes: updating electrical, replacing or shampooing carpets, painting interior walls, repairing damaged floors, updating kitchen, painting outside of home, and updating bathroom/s.

The home improvement projects with the highest price increases to a home's resale value are updating the kitchen ($1,200 cost / $2,850 price increase), followed by painting the outside of the home ($900 cost / $1,815 price increase) and home staging ($300 cost / $1,780 price increase). 

"Inexpensive cosmetic home improvements and basic improvements greatly enhance the value of the home," stated Carol Wilson of Carpenter Real Estate in Indianapolis, IN, HomeGain AgentEvaluator member since 1999.

November 9, 2009-President Obama recently signed an expanded version of the $8,000 first-time homebuyer tax credit that was set to expire on November 30. "The new version of the tax credit has the potential to stimulate the housing market even more than the old version due to the fact that more people will qualify under the new rules," said Gibran Nicholas, Chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers. "Although the tax credit remains at $8,000 for homebuyers that have not owned a primary residence in the last three years, it has been expanded to include a $6,500 tax credit for homebuyers that have lived in their current primary residence for at least five consecutive years out of the past eight years. Under the old rules, move-up homebuyers did not qualify." Consider these three examples: 

Example 1:
Jane purchased a home in 2002, lived there for 5 years as her primary home, moved out in 2007, and turned that home into a rental property. If Jane decides to buy a new primary residence today, she would qualify for the $6,500 tax credit based on the fact that she lived in the same residence as her primary home for at least five consecutive years out of the past eight.

Example 2:
Harry purchased a home in 2004, and lived there for the past 5 years as his primary home. If Harry decides to buy a new primary residence today, he would qualify for the $6,500 tax credit based on the fact that he lived in the same residence as his primary home for at least five consecutive years out of the past eight.

Example 3:
Nicole purchased a home in 2006, and lived there for the past 3 years as her primary home. If Nicole decides to buy a new primary residence today, she would not qualify for the $6,500 tax credit based on the fact that she did not live in the same residence as her primary home for at least five consecutive years out of the past eight. 

The tax credit applies to homes purchased for less than $800,000 before May 1, 2010. "If you sign a binding contract to purchase a home before May 1st, you would need to close on the transaction before July 1, 2010," Nicholas said. "It works kind of like a gift certificate that can be redeemed for cash. You simply file a form with the IRS right after you buy your home, and the IRS will send you a check for the full amount of your credit." 

The income limitation for single tax payers went up from $75,000 under the old rules to $125,000 under the new rules. For married tax payers, the income limitation went up from $150,000 to $225,000. "This means that more people will qualify for the credit - especially in parts of the country with higher costs of living," Nicholas said. "This should help stimulate parts of the housing market that may not have been impacted by the old version of the credit." 

There are many creative ways of structuring your home purchase transaction in ways that maximize the benefits of the credit. Here are a few examples: 

-The credit applies to 1-4 unit homes as long as you live in one of the units as your primary residence - you could live in one unit and rent out the others

-If two unmarried individuals buy a home, and only one of the individuals qualifies for the credit based on their income or past home ownership status, the individual who qualifies for the credit can claim the full credit. (Note: In the case of married couples, both spouses must qualify for the credit).

-The credit applies even if you have co-signers on your mortgage loan 

Existing-home sales bounced back strongly in September with first-time buyers driving much of the activity, marking five gains in the past six months, according to the National Association of Realtors®. Existing-home sales-including single-family, townhomes, condominiums and co-ops-jumped 9.4% to a seasonally adjusted annual rate of 5.57 million units in September from a level of 5.10 million in August, and are 9.2% higher than the 5.10 million-unit pace in September 2008. Sales activity is at the highest level in over two years, since it hit 5.73 million in July 2007. 

Lawrence Yun, NAR chief economist, said favorable conditions matched with a tax credit are boosting home sales. "Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home," he said. "We are hopeful the tax credit will be extended and possibly expanded to more buyers, at least through the middle of next year, because the rising sales momentum needs to continue for a few additional quarters until we reach a point of a self-sustaining recovery." 

Even with the improvement, Yun said the market is underperforming. "Despite spectacular gains in the stock market, principally from the financial sector recovery, most of the 75 million home owning families have more wealth tied to their homes. Home values could soon turn consistently positive and help the broad base of middle-class families, but we are not there yet," he said. "We're getting early indications of price stabilization, but we need a steady supply of qualified buyers to meaningfully bring inventories down and return us to a period of normal, steady price growth and to fully remove consumer fears, which would then revive the broader economy. Without a firm foundation for middle-class wealth recovery, the post-recession economic growth likely will be one of the weakest in U.S. history." 

Early information from a large annual consumer study to be released November 13, the 2009 National Association of Realtors® Profile of Home Buyers and Sellers, shows that first-time home buyers accounted for more than 45% of home sales during the past year. A separate practitioner survey shows that distressed homes accounted for 29% of transactions in September. 

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said affordability conditions remain historically high. "Potential first-time buyers can take heart in that affordability conditions this year are the highest on record dating back to 1970, but with the first-time buyer tax credit scheduled to expire at the end of next month, people could hold back from entering the market," he said. "Our read is that housing overshot on the downside because homes are selling for less than replacement construction costs in much of the country, and the home price-to-income ratio has fallen below the historical average," McMillan said. 

Total housing inventory at the end of September fell 7.5% to 3.63 million existing homes available for sale, which represents an 7.8-month supply at the current sales pace, down from an 9.3-month supply in August. Unsold inventory totals are 15.0% below a year ago. 

"The current housing supply is the lowest we've seen in two and a half years," Yun said. "If we could continue to absorb inventory at this pace, home prices would return to normal, modest appreciation patterns next year. 

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 5.06% in September from 5.19% in August; the rate was 6.04% in September 2008. The national median existing-home price for all housing types was $174,900 in September, which is 8.5% lower than September 2008. Distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes in the same area. 

Single-family home sales rose 9.4% to a seasonally adjusted annual rate of 4.89 million in September from a pace of 4.47 million in August, and are 7.7% above the 4.54 million-unit level in September 2008. The median existing single-family home price was $174,900 in September, which is 8.1% below a year ago. Existing condominium and co-op sales jumped 9.7% to a seasonally adjusted annual rate of 680,000 units in September from 620,000 in August, and are 9.7% above the 561,000-unit pace a year ago. The median existing condo price was $175,100 in September, down 11.7% from September 2008. 

Northeast
Regionally, existing-home sales in the Northeast increased 4.4% to an annual level of 950,000 in September, and are 11.8% higher than September 2008. The median price in the Northeast was $234,700, down 7.0% from a year ago. 

Midwest
Existing-home sales in the Midwest jumped 9.6% in September to a pace of 1.25 million and are 7.8% above a year ago. The median price in the Midwest was $147,600, which is 1.0% below September 2008. 

South
In the South, existing-home sales rose 9.0% to an annual level of 2.06 million in September and are 10.8% higher than September 2008. The median price in the South was $153,500, down 7.6% from a year ago. 

West
Existing-home sales in the West surged 13.0% to an annual rate of 1.30 million in September and are 5.7% above a year ago. The median price in the West was $219,000, which is 15.0% below September 2008. 

For more information, visit www.realtor.org. 

October 30, 2009-(MCT/The Wall Street Journal)-The Senate has reached a compromise on extending and expanding the $8,000 tax credit for first-time home buyers, a boost the housing industry believes will help it pull out of its two-year-old downturn. 

While its passage remains uncertain, the agreement would extend the existing credit for first-time homebuyers, worth up to $8,000, while offering a new credit of up to $6,500 for some existing homeowners, Senate aides said. The reduced credit would be available to all homebuyers who have been in their current residence for a consecutive five-year period in the past eight years. Lawmakers in Washington also raised the qualifying income limits to $125,000 for single taxpayers and $250,000 for joint taxpayers, from the current $75,000 and $150,000, housing-industry sources said. Under the Senate compromise, buyers must have sales agreements in hand by April 30, but they will have until June 30 to go to settlement, said the sources. The measure still faces votes in the full Senate and the House. 

Treasury Secretary Tim Geithner and HUD Secretary Shaun Donovan are in full support of the Senate's proposal to both extend and expand the first-time homebuyer tax credit and called on Congress to approve key housing measures that include the tax credit. "We welcome efforts taken by Congress to extend the First-Time Homebuyer Tax Credit for a limited period. This credit has brought new families into the housing market and contributed to three consecutive months of rising home prices nationwide," said Secretaries Geithner and Donovan. "In extending the credit, we urge Congress to include strict measures to combat tax fraud and protect responsible homeowners." 

The current tax credit did little for the new-home market in September, the Commerce Department recently reported-news that took many industry analysts by surprise. Sales fell 3.6% from August and 7.8% from September 2008. Industry observers had expected a fifth consecutive monthly increase in new-home sales, believing that the tax incentive for qualified first-time buyers-credited with 357,000 sales of previously owned homes so far this year-would do the trick. Instead, sales of typically more expensive newly built houses slipped. "The decline in new-home sales seems to us to be more a function of the attractive pricing available on resales in the current environment than a reflection of weakening demand," said Michael Feder, president of Radar Logic in New York, which tracks the market. 

"Since hitting rock bottom in March, demand is up 20 percent," said Joel L. Naroff of Naroff Economic Advisers in Holland, Pa. For Naroff, the robust rise in existing-home purchases-9.2% year over year in September-indicated that the housing market was not faltering. "Maybe the issue is supply, which fell to its lowest level in 27 years," he said. "Builders, at least those left standing, have been making sure they don't have any houses sitting around, and they have been very successful in controlling inventories." 

IHS Global Insight economist Patrick Newport echoed that, noting new-home inventories "sank for the 29th straight month to their lowest level since November 1982." Naroff maintained housing has recovered enough to stand without the tax credit, but Newport said that if the credit were not extended and expanded, housing demand would take a hit, and home sales would drop. 

The new provisions are aimed at broadening availability of the credit beyond first-time buyers and giving the weakened real estate market a bigger boost while preventing real estate investors from benefitting. While Senate lawmakers appear to have reached a deal on the substance of the tax credit, they are still at odds over how it would be brought to the Senate floor. 

It may be too late for most first-time home buyers to cash in on free money from the government aimed at stimulating the housing market. Under the American Recovery and Reinvestment Act of 2009 [AARA], a qualifying individual who has not owned a primary residence within the past three years can get a tax credit equal to 10% of the purchase price of a new home, up to a maximum of $8,000.(1) Moreover, unlike similar legislation passed last year, you never have to pay the money back.

But the deadline is fast-approaching. It's not enough to simply make an offer on a property by Nov. 30 -- the deal has to be closed by this date. "Closed" means you actually take title to the property. "When the clock strikes twelve on December 1st, it's over," says Lucien Salvant, a spokesperson for the National Association of Realtors.

Prolonging the Process
The problem is, two things have to happen before you can close on a home: 1) the property has to be appraised, and 2) you need to secure financing. Both are taking longer than they used to. According to Salvant, these days "private lenders are requiring more documentation -- in some cases a lot more" -- before they will approve a mortgage. And, new regulations covering appraisers are also slowing up the process. As a result, Salvant says it's commonly taking 60 days to get from offer to closing.

Toss in the fact that you'll lose a day or two due to the Thanksgiving holiday in late November and it's easy to understand why, if you haven't already started the process, you may be out of luck.

Hail Mary Strategy
Still, if you've already zeroed in on a couple of homes you're considering and you can find a co-operative lender, there's one tactic you might consider: apply for a loan ASAP. In other words, get pre-approved for the amount you'll need to borrow before you even decide which property you want to make an offer on. "Make sure you get 'pre-approved' and not simply 'pre-qualified,'" says Salvant. The former means you've already got the loan, while the latter simply says you're eligible for one.

What Qualifies?
According to the National Association of Home Builders, the property can be a single family home, a condo, a co-op, mobile home, or even a houseboat! It can be new construction or previously-owned. It can also be a home that you are having built as long as you move in by Nov. 30.

Again, the credit is only available if the property you're purchasing is going to be your primary residence. So forget about using it to buy a vacation home or rental property.

Who Qualifies?

The first test you have to meet is the requirement that you have not owned a primary residence in the past three years.
There's also an income limit. Abe Schneier, senior technical manager with the American Institute of Certified Public Accountants, says to be eligible for the credit, your "modified" adjusted gross income [MAGI] this year cannot exceed $75,000 if you file as a "single" taxpayer, or $150,000 if you are married. A partial credit is available provided your MAGI is not more than $20,000 above these amounts.

Using 2008 Income Instead of 2009
Even though you purchase the home this year, the law gives you the option of using your 2008 MAGI if that would enable you to meet the income limit. You might also want to use last year's income if that would mean you can qualify for a larger credit. However, you will have to file an amended 2008 tax return.

The Marriage Penalty
If you're married, both spouses must meet the three-year test about previously owning a home. That is, if you owned a condo, but your spouse rented, as a couple, you don't qualify for this credit. If you both meet the 3-year test, your combined income will determine whether you meet the MAGI test.

However, if you're not married to the person you're buying the property with, then each of you is considered separately. If you both meet the eligibility requirements, you have to split the credit. How you do this is pretty much up to you provided it's "reasonable." One way, suggests Schneier, is "percent of ownership" based upon, say, how much each contributed to the purchase price.

Furthermore, if one of you owned a home within the past three years, but the other didn't or one meets the income requirement, but the other earns too much, then the individual who qualifies can claim the entire credit, according to Schneier. This will not affect how the home is titled. For instance, the two of you can still own it as "joint tenants."

With a Little Help From Mom and Dad
This opens the door for parents to help a child buy a home. Even if his parents have owned their current residence for 20 years and are joint owners of the new home, Junior could qualify for the tax break. As Schneier points out, "It's the person who lives in the home that gets the credit. Not the one who's financing it."

What About the Red Tape?
It's surprisingly simple to claim the credit. You or your tax preparer calculate the amount for which you're eligible on IRS Form 5405 and then enter this figure on Line 69 of your 1040 income tax return. As mentioned above, if your income tax bill is less than the credit, you'll get the difference in a check from Uncle Sam. For instance, if you owe $3,000 in income tax and your credit is worth $5,500, you'll receive a check for $2,500.

Not So Fast
This credit is not meant to help speculators. You'll have to re-pay the credit (known in tax-speak as "recapture") if you don't live in the home for three years.

Why Are You Reading This?!

If you're in the market to buy a home and could qualify for this tax credit, time's a-wastin'. Decide on the home your want. Get your paperwork to your lender ASAP. Be a pest. Check in with your realtor, appraiser and lender frequently to find out how they're progressing. It might seem as if December is a long way off, but it's closer than you think.

1. Since it's a "refundable" credit, you will get a check from the government if your tax liability is less than the amount of your credit.

September 17, 2009-Nearly everyone is using the Internet these days to find information or connect with others. But surfing the Web can still sometimes feel like the Wild West. Despite technological advances to help reduce the risk of identity theft, becoming the victim of an Internet scam or having your privacy invaded is a persistent threat. And, as a number of recent incidents involving social networking websites have shown us, it can even be fatal. 

Keeping your guard up is essential to avoid trouble on the Internet. Here are nine tips to help you stay safe online: 

1. Be careful who you give your information to. Avoid giving out personal information such as your name, address or telephone number on websites until you have read and understand their privacy policy. For example, be on guard for online promotions or contests in which you may be asked to provide details about yourself. This information could be used to market to you in the future. Never give out your Social Security number or passwords online, unless you are certain the site is secure.

2. Don't reply to spam. Ever get one of those strange, unexpected e-mails for real estate, weight loss, work-at-home or investment opportunities? Your best bet is to delete those e-mails without opening them. Never reply to these e-mails, even to request they remove your name from their lists. Replying will alert the sender that your e-mail is a "live" e-mail attached to an actual person.

3. Use secured websites. Before you purchase a product or service online with a credit card, make sure the connection is secure or encrypted. Look for a small lock icon on the website, or look at the URL address line; a secure connection will begin with https:// ("s" for secured) instead of http://

4. Beware of public wireless access. Don't send personal or confidential information when using public wireless connections in cafes and other public places. Fellow wireless users could potentially monitor what you are doing from only a few feet away.

5. Think before you post. Avoid revealing personal information or photos on websites such as Facebook, MySpace or SecondLife. Personal or embarrassing information and images can haunt you in years to come when you are applying for college or a new job. If it's on the Internet, it's available for a potential employer, your school, a future or current spouse, your mother or grandmother to find.

6. Beware of classified listing meet-ups. When using websites such as Craigslist or Freelist to buy or exchange goods locally, always bring someone you trust with you to meet the seller/buyer. Be cautious about letting strangers into your home or meeting in unsafe places

7. Watch your cookies. Cookies are tidbits of information that websites store on your computer. Some cookies are useful, such as those that store information about you so you don't have to retype info every time you go to that site. Other cookies are used to track your motions through a website. Some companies keep this data for their own usage- however, some sell your information to other marketers. Be sure to monitor and edit the cookies on your computer.

8. Use anti-spyware. Spyware is sneaky software that rides its way onto computers during the download of screensavers, games, music and other applications. Spyware sends information about what you're doing on the Internet to a third-party, usually to target you with pop-up ads. Anti-spyware will help block this threat.

9. Monitor your kids' Internet use. Move computers out of the bedroom and into family space where parents and others can check on your child's Internet use by simply walking by. Set specific times that your child may surf the Web, and set rules about social media websites, such as Facebook, My Space and Twitter. 

For more information, visit www.findlaw.com. 

September 18, 2009-Tired of paying rent and enticed by a first-time home buyer tax credit, 25-year-old Garrett Rebel began his search for a home in August, scouring the suburbs of Dallas for a house to meet his current and future needs. And he's already running out of time. 

The federal tax credit for first-time buyers is "a huge motivator" for Rebel, and he may end his search if the Nov. 30 deadline arrives and he still hasn't closed on a deal. He unsuccessfully submitted an offer on one house; after going back and forth with the seller couldn't come to a price agreeable to both parties. "I haven't found anything that I've fallen in love with," Rebel said. 

Timing is everything for many first-time buyers today. For those who purchase a home this year, the tax credit is for 10% of the purchase price, up to $8,000. Those who have owned a home in the past three years aren't eligible. Buyers also have to meet eligibility requirements regarding income; the current credit begins to phase out for singles who make more than $75,000 and couples who make more than $150,000. 

Unless it is extended, this credit will expire on Nov. 30. "We are seeing an increase in buyers wanting to get closed prior to the tax credit closing deadline," said real-estate agent Amy Downs, who represents Rebel. "We are seeing an increase in sellers wanting to get their homes on the market and closed by this deadline. I feel that if we can get the homes priced accordingly and a strong offer by mid-October, we can beat this deadline with a reputable lender working the buy side." 

Some real-estate agents and mortgage brokers are recommending that first-time buyers close no later than the week before Thanksgiving to ensure that no holiday-related office closings or abbreviated schedules interfere with the process. That means finalizing a purchase on or before Nov. 20. In fact, to make sure you can take advantage of the credit, it's probably best to go under contract no later than the first or second week of October, said Jim Sahnger, mortgage planner with Palm Beach Financial Network in Florida. 

The National Association of Realtors reports that it's taking about two months to complete a home sale in the current market, as lenders scrutinize borrower paperwork and issues with appraisals pop up. In short, first-time buyers probably need to select a property and make an offer by the end of this month. But rushing to meet the deadline is a double-edged sword. The purchase of a home-let alone your first one-isn't a decision that should be taken lightly.

"For anyone, the decision to buy a house has to be a right one," Sahnger said. "While the $8,000 can be great to have, I wouldn't let that force you into a decision. But there is something that works and you want to take advantage of the credit, you can't afford to delay the decision."

For buyers who don't make the deadline, there is a chance the credit will be extended. There are at least 20 bills drafted regarding the credit; one-third of them have been introduced recently, said Lucien Salvant, managing director of public affairs for NAR. Some proposals would not only extend the first-time buyer credit into next year, but would also expand it to include all home buyers, remove income restrictions and raise the maximum amount of the credit, up to $15,000.

By including all buyers, there could be more of a ripple effect as more Americans spend money on moving vans, lawn equipment - any items or services associated with making a move, said Jerry Howard, president and CEO of the National Association of Home Builders. NAHB and NAR have been lobbying heavily for the extension. "The first priority is going to be to renew the $8,000 credit, but we have some good arguments for expanding it," said Jerry Giovaniello, senior vice president and chief lobbyist for NAR. He argues that the credit doesn't cost much but has a huge impact.

If you're a first-time buyer, however, waiting is a gamble. "What you have in front of you now is a tax credit. After that, you don't know what you have," Salvant said. "This thing can go all different kinds of ways."

NAR estimates that about 1.8 million to 2 million first-time buyers will take advantage of the tax credit this year, and says that roughly 350,000 sales wouldn't have taken place without the credit.

But the effectiveness of the credit will eventually peter out because there are only so many potential first-time buyers, said Richard Green, director of the Lusk Center for Real Estate at the University of Southern California. He said that the credit is likely getting many first-time buyers to make their purchases six months to a year earlier than they would have anyway. "In terms of how effective it is, I don't think it does any harm at this point. It's pushing sales forward that would have happened anyway," he said. "You're giving money to people who were going to buy anyway." Increasing the credit amount to $15,000 and expanding it to everyone, however, could end up translating to higher home prices, he added.

Still, there is growing Capitol Hill support for the extension of the credit. Senate Majority Leader Harry Reid, D-Nev., said it needs to be extended by the end of the year, according to a spokesman from his office. And Washington Research Group, a unit of securities firm Concept Capital, recently put the chance of extension at 60 percent.

Yet with Congress currently focusing on other issues, and concerns about the country's rising deficit, some wonder how difficult it will be for housing to garner attention anytime soon. "All eyes are on health care," said Bruce Hahn, president of the American Homeowners Grassroots Alliance.

According to Realtor.com, first-time buyers on average search 12 weeks to find a home. But there are ways for buyers to expedite their journey to closing: Sign up for automatic alerts for properties that fit your criteria. Many buyers start their search online, and it's possible to sign up for e-mail alerts when properties that meet your criteria are added, Realtor.com points out. If you're working with a real estate agent, he or she also may be able to register you for automatic alerts when homes are listed. But make sure the information you receive is fresh - you don't have time to look at unavailable homes.

Do all you can to ensure a smooth mortgage process. Collect pay stubs, bank statements and tax returns to prove income. Get prequalified. And while your loan is in process, don't make major purchases on credit cards - that could delay closing, said Julie Reynolds, a spokeswoman for Realtor.com.

Prepare for closing costs early. Get your insurance company and, if applicable, your homeowner association, to forward a cost estimate to the escrow company early, Realtor.com recommended in a news release. In many states, closing costs must be paid - in cash - at closing.

Ongoing sibling disputes led to Tuesday's dramatic changes atop the Carolina Panthers' organizational structure, according to sources.

The team issued a surprise news release during the morning practice announcing the dual resignations of team president Mark Richardson and stadium president Jon Richardson, but gave no reason for their departures.

Sources said the brothers had vastly different ideas about how the organization should be run, which ultimately led their father, team owner Jerry Richardson, to decide the best thing for the business was for both of them to leave.

As a result, the Panthers are no longer a predominantly family-run franchise. The only Richardson still involved in the daily operations is Jerry.

Mark and Jon led the organization over the past year while their father first waited for and later recuperated from the heart transplant surgery.

The elder Richardson is now back in charge.

Jon Richardson, 50, wouldn't discuss whether differences between him and Mark, 49, led to their exits.

"I love my mom and dad, I love my brother and I wish the organization the best," he told The Observer.

The news release said Jon Richardson told staff members last month that he would be stepping aside, which he told the Observer was related in part to health issues.

Different domains

The Richardson brothers had equal authority but different domains. Neither answered to the other.

They experienced the natural sales vs. operations clashes that exist in most pro sports franchises, a dynamic exacerbated by the fact that they are brothers.

Though Jon was in charge of stadium operations, Mark was responsible for acquiring stadium naming rights, sponsorships and stadium signage. Thus, the companies Mark signed on for sponsorships could affect the products and prices for Jon's stadium vendors.

Their differences in personal style have been obvious for years. Mark dresses with a corporate look, while Jon seems more comfortable in khakis.

Mark worked alongside his father in a very visible leading role during the bid to convince NFL owners to award the Carolinas a franchise in the late 1980s and early '90s. During that time, Jon owned a garbage collections business in Chapel Hill. Jon moved to Charlotte to run stadium operations after the franchise was awarded in October 1993.

Neither Jerry nor Mark Richardson could be reached, but they were quoted in the press release.

"Both Mark and Jon made great contributions to the stadium and team that have enabled us to enjoy much success over the last 15 years," said Jerry Richardson. "At the same time, I am thankful that we have a staff that has been in place for many years and knows our philosophy."

Said Mark: "It has been a great opportunity to work with a franchise from the start and have a chance to see it mature."

Rare changes at top

Changes at the top of the organization have been rare for the Panthers. Jon Richardson is the only stadium president in team history. Mark Richardson replaced Mike McCormack as team president in early 1997.

Mark oversaw the team's business operations, including obtaining naming rights twice for the stadium and taking an innovative approach to marketing. That included bringing the team's broadcast rights in-house. He also was a member of the NFL's prestigious Competition Committee, which recommends rules changes each year. He will be replaced in that role, according to a league spokesman.

Jon oversaw the construction of the stadium, its 1996 opening and its daily operations since then.

After practice Tuesday, coach John Fox voiced continued confidence in the franchise's direction.

"I've always been a guy to try to stay in (my) lane," said Fox. "I enjoyed working with both (Mark and Jon). One thing I can say is, I have the utmost trust and confidence in Mr. Richardson doing what's going to be best for this team and organization."

Mark and Jon will remain members of the team's ownership partnership group, according to the news release. Jerry and his wife, Rosalind, and their daughter, Ashley, also are part of the group.

There were no details from team officials about whether replacements will be hired for their positions, or what sort of succession plan was in place for the top spot in the organization.

Owner 'strong as a bull'

Charlotte developer Johnny Harris, a member of the ownership group, said Jerry Richardson met with partners Tuesday morning, apprising them of organizational changes and assuring them that he was leading the franchise.

Jerry Richardson has had a less active role in the past year since news last fall that he needed a heart transplant, which he received on Super Bowl Sunday, Feb. 1.

"Everyone was impressed with Jerry physically," said Harris. "He was engaged and as strong as a bull. When he's challenged, he steps forward and he's a great leader. He was as strong as a bear and committed to having the best franchise possible. The ownership group was entirely behind him."

Harris and Panthers officials said emphatically that the team is not for sale and won't be moving out of Charlotte.

"I'm upset that there's some stuff out there that the team might be for sale," Harris said. "It was clear at the meeting that this team is not for sale."

The Panthers' partnership group includes five Richardson family members and a dozen others, according to the team's media guide. It includes notable names such as UNC system president Erskine Bowles and Family Dollar Stores founder Leon Levine.

Charlotte-based Bank of America Corp. also has close ties to the team. The bank administers a loan for the team's stadium and has the naming rights for the building. Bank of America spokesman Joe Goode said the bank "remains supportive of the Carolina Panthers organization and its fans."

President Obama appears to be abandoning hopes for a bipartisan breakthrough on health care reform, as advisers say the president will try to reframe the debate by rallying Democrats around the partisan bills that have already advanced. 

Top White House officials over the past few days have blasted Republicans who were part of a "Gang of Six" negotiating team on the Senate Finance Committee, accusing them of stonewalling progress on what was considered the only bipartisan package in Congress. 

Two senior administration officials on Wednesday confirmed to FOX News that Obama is now actively considering a prime-time address from the Oval Office or an address to a joint session of Congress to invigorate the debate, as Congress returns from a rocky recess. 

And the path forward, as the president sees it, is to unify Democrats around the three House bills and one Senate bill that have already passed out of committee. This strategy suggests the Senate Finance Committee is considered a lost cause and that the White House will use the Democratic Party's strong majority in both chambers to finish the job. 

"We are entering a new phase driven in part by the actions of some in the GOP. They are essentially walking away from the table," said one senior adviser, referring to GOP Senate Finance Committee negotiators Charles Grassley of Iowa and Mike Enzi of Wyoming. 

"Now is the time to begin to pull together the various strands and solutions from the four bills that have been marked up and other proposals," one adviser told FOX News. "Basically all the cards are on the table." 

The assessment comes after Enzi blasted Democratic proposals in a radio address over the weekend and after Grassley asked people for "support in helping me defeat Obama-care" in an August fundraising letter. 

The White House's discontent with their actions was made clear early this week. 

"I think Senator Enzi's clearly turned over his cards on bipartisanship and decided that it's time to walk away from the table," White House Press Secretary Robert Gibbs said Monday. 

White House adviser David Axelrod also condemned their comments. 

Their remarks, he said, "were not exactly consistent with good-faith negotiations." 

Though it was reported that Obama had no plans to insist on a controversial government-run insurance plan in his speech, White House advisers insisted it remains in the mix. 

"The president thinks it's the best way to achieve his ultimate goal -- choice and competition -- but certainly not the only way to get there," one adviser said. 

Officials were not clear on the details of the president's coming push for reform. 

"The president is considering all of his options on how to advance the debate and get reform passed. This includes possibly laying out a more specific vision," the adviser said. "No decisions have been made, though." 

The president's willingness to put more of his own proposals out to the public shows he's been listening to critics, on both sides of the aisle, who say he has not done enough to steer the work of his congressional allies. In the absence of an Obama plan, public confidence in the president's ability to handle the colossal task, and in health care reform itself, has eroded. 

As Obama embarks on what is perhaps his most important political campaign since the election, he still faces the tricky task of bridging the gap between fiscally conservative Democrats and the liberal wing of his party -- let alone peeling off any remaining Republicans willing to strike a deal.

But the president may have to take a clear stand on the so-called public option to really shake up the debate. 

"This speech only has to be two paragraphs long," said a Democratic strategist who asked not to be named. "Two paragraphs saying you're fighting for the public option no matter what. Or two paragraphs saying you're setting it aside to focus on other priorities. Everything else has been said before and heard before. Over and over. If the White House doesn't say one or the other, I'm not sure another speech can make much difference." 

Following are the top 7 reasons why it's better to buy than rent in 2009

1. Buying doesn't always cost much more than renting. According to a recent study by the Associated Press, the gap between monthly mortgage payments on a median-priced home and the median rent has decreased from $777 to just $221 in the last three years.

2. Affordability is at an all-time high. In markets across the nation, including the inland areas of California, prices have declined by nearly 40%.

3. Buyers can take advantage of tax benefits of home ownership. Perhaps the biggest tax break is reflected in the house payment homeowners make each month. For most, the bulk of that payment goes towards interest. All interest is deductible, unless the amount is more than $1 million. Property taxes are also deductible.

4. Buyers can purchase homes with little or no down payment. Qualified first-time buyers may be eligible for loans insured by the Veterans Administration (VA), which does not require a down payment. Another loan product gaining popularity are those insured by the Federal Housing Administration (FHA), which require only a down payment of 3.5%.

5. The Tax Credit. First time homebuyers-defined as anyone who hasn't owned a home in the last three years- are entitled to an $8,000 tax credit. (Ownership of a vacation property or a rental property doesn't disqualify homebuyers from this program.) No repayment is required for homes sold after 36 months of occupancy and ownership.

6. Mortgage rates are at all-time lows. Take advantage of low 30 year fixed rates. We haven't seen rates this low in the last 3 decades.

7. It's yours. It feels good to own your own home. After all, you can paint it any color you want, make improvements, and plant a little garden.

THINGS TO DO IN CHARLOTTE( Fourth of July)

Top 10 mistakes of first-time buyers

“We believe that FHA has done a good job stepping up to today’s market challenges. However, along with the dramatic growth in market share comes greater responsibility and the need for increased infrastructure and staff,” Scott said. Over the past 18 months, FHA has handled an increase in volume four times greater than 2007 levels, increasing its market share to over 30%.

NAR suggests a number of FHA improvements that will help maintain safe and affordable FHA loan products. These improvements include investment in staff and technology; increased oversight and risk management; technical correction to help implement FHA programs; and monetizing the $8,000 first-time home buyer tax credit to allow buyers to apply it toward downpayment requirements.

“The U.S. Department of Housing and Urban Development has made a number of important and valuable changes to FHA over the years that has enabled it to stand up to the challenges of today’s mortgage market,” Scott said. “FHA is now a principal source of financing for millions of America’s families, and without it, the economic crisis would be significantly prolonged. This is why it is so important to invest in FHA improvements and advancements.”

NAR pledged to continue to work for FHA reforms that will ensure the continued success, availability and safety of FHA mortgage insurance programs.