What Does Toni Have To Say?

I heard a commercial the other day about foreclosures and what a great deal they were.  This commercial also touted the fact that 1^st time home buyers should buy a foreclosure. 

Well, I'm not so sure about that.  Now, everybody wants a deal, but a deal to one person could be a nightmare to another.  There are some GREAT foreclosed properties out there that are in good condition, but you have got to be choosy, look at what you are getting and don't buy just because someone says "You need to buy a FORECLOSURE because they are a DEAL"

 One thing to know is that most foreclosures are to be purchased AS IS.  That means the seller will make NO REPAIRS.  Most houses have sat empty for months without any power or maintenance. It is imperative that the buyer have a home inspection done on the property so they will know what is under the skin so to speak, however, the bank already knows that the property may need some repairs and usually prices them accordingly. You may include a laundry list of items noted as being wrong with the property; however, the bank may not even look at it.  AS IS means AS IS

The next question is, if you DO uncover something in the inspection, how will you fix it?  Do you have enough cash in your bank account to cover fixing the problem items?  Do you personally know HOW TO fix things, or are you relying on repair people that you don't know? Things ALWAYS cost more to fix than you think. Buying a house with no extra $$ in the bank - especially a foreclosure - is a bad idea.  Also, thinking that you will LEARN by going to classes at Home Depot may seem like a good idea at the time, but this gets REALLY OLD.  I've met many couples that bought a fixer upper as their first house, and of those couples, none wanted to do it again.

Now, you could be getting a fantastic deal on a property, have worked on houses since you were a kid, have a little extra cash in the bank for repairs and are ready to go.  If the buyer is getting a standard FHA, VA, or high LTV conventional loan, the condition of the property is very important. In most cases, if the house is not in average condition then underwriting will decline the loan. Consult with your lender with what repairs are needed, to determine if the property will qualify for the type of loan being sought.  

I showed houses over the weekend and several were foreclosures. There are some foreclosures out there, like the home for sale in Glen Gate above, that are in nearly perfect condition (I say nearly perfect because there is no perfect house), most need some work and others are total dogs.  Be cautious and make sure you know what you are getting into when buying a foreclosure.

Looking for a home in Hoover or the Greater Birmingham area.  There are lots of properties available.  Call me for an appointment to look at your favorites.

The American Recovery and Reinvestment Act of 2009, that President Obma signed into law on February 17, 2009 is loaded with provisions that are supposed to jump start the economy.  Approximately 35% of the bill includes TAX CUTS.

The President is really interested in energy conservation.  He is also a champion of putting people to work through the creation of more GREEN jobs. The ARRA has significant provisions for making homes and buildings more energy efficient. So if YOU take advantages of the TAX CUTS available to you to make your home more energy efficient, then you will be saving money by saving energy costs, creating a job for someone AND getting a tax credit.  Sounds like a Win - Win - Win.

One of the tax advantages that you can take advantage of through 2010 is a 30% tax credit for the purchase of a new furnace, windows or insulation.

Last year I put all new windows in my house.  I am able to take a tax credit this year (2008), but it was only for 10% of the cost.  Now that credit is 30%.

Is your furnace energy efficient?  Click here for information on how much you can save with a new energy star furnace. Have you looked in your attic at the amount of insulation up there (insulation shrinks and deterorates over time). Do you have insulated windows?  Additions of any of these can save you big bucks if you replace them in the next 2 years.

If you would like to more about the American Recovery and Reinvestment Acts of 2009, check out my monthly on-line newsletter.  If you would like to receive a copy every month, let me know at www.ToniBird.com.

The American Recovery and Reinvestment Act that President Obama signed into law on February 17^th has 46.7 Billion dollars allocated to states and localities for transportation projects including building and/or fixing highways, bridges TRANSIT and rail projects.  

What a great way to put people to work. 

I know the pot holes in I-65 and I-459 in the Hoover area would be on the top of MY list for improving roads.  Yesterday when I was leaving the office, I looked down and there was a big LUMP on one of my tires - just what I needed, right.  My mind traced back to a couple of days ago when I couldn't avoid this HUGE pot hole on I-65 South.  I'd be willing to BET that is what caused my tire - with only 6,000 miles on it - to fail.  So, I am doing my part toward keeping someone at a tire manufacturing plant employed, but I'd rather see some work being done on the interstates! The folks at NTB were great by the way! I was in and out in an Hour.  And, I got to see the Michellin Man which reminded me of the snow we got last week.

Now, back to roads.....hasn't it been 10 years or so since they started talking about 4 laning Morgan Road between Helena and I-459.  I was behind a garbage truck the other day and I thought he was going to throw a rod before he got to the top of Shades Mountain. I think we were down to 2 miles per hour behind him. It happens all the time in that spot - the grade is too steep. Oh, I heard a good one the other day - Jefferson County is out of money - OMG - what a shock.  Alright we won't go there.  I DID notice they are building the extension from HWY 52 SOUTH to Fox Valley.  So then all the people will be able to get up to the northern part of HWY 52 MORE QUICKLY.  Now my question is - once they get there how are they supposed to get the next 4 miles to I-459....

They say a lot of bridges in this country are really in disrepair.  I always wonder when I drive over a clunky bridge how much useful life it has.

What about some type of rail system from downtown to Hoover and Helena and other places around the city.  How about a rail to Atlanta. Just sit back and read the paper while you're on your way to that meeting. That would cut down on the pollution. Automobiles are a HUGE form of pollution is the Over the Mountain area. You remember those days in summer when the air quality is so bad.

There are so many things that need to be done with that money in our own backyard. We can only hope the government with hire companies fairly and the projects will be completed without wasteful spending and fraud.  I'm really tired of hearing how our elected officials just happened to get several thousands of "favors" in return for government contracts.  Then when they get caught, it also amazes me that they don't seem to think they did anything wrong.  Let's do it and do it RIGHT!

There is a lot to this new stimulis package. If you would like to hear about the American Recovery and Reinvestment Acts of 2009, check out my monthly on-line newsletter.  If you would like to receive a copy every month, let me know at www.ToniBird.com.

On February 17^th, President Obama signed the American Recovery and Reinvestment Act into Law. Over the last week, I've had several people ask me about the new tax credit.  This is similar to the housing bill that President Bush signed at the end of July but better.

If you are a first time home buyer (and a 1^st time home buyer is defined as someone who hasn't owned a home in the last 3 years), then you can qualify for an $8,000 TAX CREDIT on your 2009 taxes.  A tax credit is better than a deduction because it is subtracted directly from the amount of tax you owe. The credit works on a primary residence that you purchase between January 1, 2009 and December 1, 2009.  The tax credit is actually 10% of the purchase price, so if the house only cost $65,000, you would only receive $6,500.

There is nothing that you have to apply for.  The credit will be claimed when you file your income tax return. If you owe less than 8,000 in taxes, you will get CASH BACK to use on whatever you want.

A lot of people get excited because they think they can use the 8K for their down payment - well you can't.  You don't get the money back until AFTER you file your tax return.  So, you will still need to save up for that down payment. One thing you CAN do, though is reduce the deductions you claim on your W-4 (the withholding form at your employer), that way you will take home more money each month in your paycheck.  If you are self employed, you can make similar adjustments on your estimated payments.

There ARE income limits.  If you make under $75,000 personally or 150,000 as a married couple you are eligible for the whole $8,000 amount.  If you make up to $95,000 as a single and $170,000 as a couple then you have a "phased out" amount that you can claim.  Over $95,000/$170,000 you get nothing.  Also, if you sell the house within 3 years (and just about everybody stays in their house for at least that long) you have to pay the tax credit back.

Wow what a wonderful gift from Uncle Sam.  Interest rates are still low and now you get a credit - Not a deduction, so you will pay up to $8000 in less tax with your 2009 return.

 If you haven't already done so, now is the time to contact a lender and get pre-approved for a loan.  You can shop for houses on line at my website www.ToniBird.com,  When you are ready, contact me and I'll help you find the home of your dreams.

I haven't looked at any news yet today, but when I do I'm sure I'll hear SOMETHING about the housing market.  It is part of almost every conversation.  We had some friends over for dinner Saturday night and before the night was over, the topic turned to Real Estate. Last evening at the dinner table my 15 year old asked, "what is the real story about the financial crisis".  So, when your teenager is asking about the financial crisis and it's not for a paper he has to write for one of his classes, you KNOW it is in mainstream conversation.

 There are people out there who want to buy a house, but they are scared.  They are scared that they will buy a house and loose all their money.  We have been told that our house is an investment and some people have turned it into a commodity.  Others think it MUST make a certain "rate of return" or it is a bad investment.

Yes, your house is an investment, but it is also a place for you to LIVE. You also have the responsibility to take care of it - to keep it maintained.  You can also personalize it through painting, landscaping, changing fixtures, adding on, etc., and IT IS YOURS. The landlord can't raise your rent or kick you out.  If you live in a neighborhood with restrictions, there may be some things you can't do to the outside of your structure or pile junk cars up in the yard. Some neighborhood restrictions are a little too restrictive for some, but basically these rules won't be hard to follow if you have PRIDE in your home and take care of it. So, you have a place to live, you can do what you want to it AND your home will increase in value so when you get ready to sell it, it will be worth more.

Let's face it.  Recently, what happened in the real estate market was a bubble, not something permanent. Birmingham is not nearly as bad as the rest of the county - believe me -but we have lost value in some areas. This bubble was created by removing all barriers to owning real estate. Getting a mortgage became too easy because people COULD get a house without having ANY money. Interest rates were at historical lows and some lenders started offering "creative financing" so some people were buying more house than they could really afford. Because all of a sudden, anyone could by a house, there were more buyers than houses and prices went up (remember the old supply and demand). Appreciation skyrocketed in many markets. The rush to riches through real estate came to an end because bubbles eventually burst. Now we are left with a buyer's market, instead of a seller's.

From a financing perspective, we are back to the way it was 10 years ago.  A person has to save money to buy a house and they have to have money in the bank for an emergency (like enough to make a payment or two if you loose your job). They need to show that they CAN pay back the mortgage company by having a good credit history.  One advantage over 10 years ago is that rates are LOW, so your payment is less and if you get a fixed rate loan your loan payment will not go up (your taxes and insurance may, but not the repayment on your loan).  Can you say that the rent you pay for your apartment will not go up????  Even though you hear the banks are not lending money, there is PLENTY of MONEY out there for you to buy a house.

 And, assuming you don't try to sell your house right away, your house will be worth more when you DO sell it.  A basic rule of thumb is if you take care of it, a house will appreciate 3% per year.  There are costs associated with selling a home, just like buying a home and those costs tend to be about 9% of the salesprice. So keep it 3 years and you are going to "break even".  After that you will make a profit.  We saw prices shoot up in 2005-2007, so if you bought then, these rules don't apply, because the people who owned then made more than 3% per year, but over time prices will go UP.  Now prices have come down and are where they should be - it is a good time to buy.

 I saw some national statistics for housing appreciation on RISMEDIA:

1970-1979 = 142% appreciation
1980-1989 = 52% appreciation
1990-1999 = 45% appreciation
2000-2008 = 42% appreciation

Source: The National Association of Realtors

Birmingham prices are not as high as some other areas of the country so we are probably a little on the low side of those numbers, however, looking at that, we can say the 3% would be conservative.  Conservative would be smart for the next few years.

What else can you buy, use it for 5 years and then sell it and make money: your car, your clothes, your TV, your cell phone?

Buying a Home is a smart choice for your money.  If you would like to talk more about buying a home, let me know I'd be happy to help.  Contact me at www.ToniBird.com.

It snowed today in Hoover Alabama.  Most people stayed inside and watched the snow come down in the morning and then went about the rest of their day as  planned.  It is getting to be that time of year when people start thinking about buying a  house and lots of people who were thinking about home ownership last fall decided to wait a little while longer and save up for a bigger down payment. With the new tax credit for first time home buyers available, this is an even better time to think about home ownership.  But where to start?

Once you've Saved up money for a Down Payment to Buy A House, Checked Your Credit so there are no glitches, and have a good idea about Where you Want to Live, the next step is to get Pre-Approved by a lender. The key here is Pre-Approved not Pre-Qualified.  You want to fill out the lender's application and have them review your credit documentation BEFORE you go and look for that house.

There are hundreds of lenders out there that loan money to purchase homes in Hoover, Al or the greater Birmingham area.  I have worked with several great ones and some bad.  Some lenders will just ask you a few questions and they tell you - yes you can qualify for a house, but the good ones will want to verify your information before they give you an answer.

If you don't know a lender, get some recommendations from people who work with lenders everyday - such as your friendly realtor.  I have several I can recommend.  I wouldn't shop for a lender based on rate, I would shop based on service.  Most lenders in this area are going to be competitive; you want to make sure they can get you to the closing table on the DATE YOU WRITE IN THE CONTRACT.  Give me a call at 821-3312 or e-mail me at http://www.tonibird.com  I'll be happy to recommend a few for you to choose from.

When you meet with the lender you will need some financial information, so plan to bring these documents:

Your W-2 forms from last year and your most recent pay stub,

Your last 2 months bank statements,

Any investment accounts you have such as a 401K from work,

The name and address of your current landlord,

Your credit card numbers, the balances and the monthly payment of each,

Information on any other loans you have such as student loans, car loans, etc.

The lender MAY need other information from you, but this will get you started and after they meet with you, they'll let you know if they need anything else. If they ask for other documentation, get it as quickly as possible. Expect them to have you sign a form saying it is OK for them to pull your credit report.  Even if you have run your own, they will need to do it to make it official.  They will probably charge you a fee for this - as the credit bureau will charge them a fee (even though you can pull one each year for free).

Feel free to ask questions.  If you feel the lender is not willing to answer you or is too pushy - then walk away and find another one.

Once you are PreApproved, you'll be ready to shop for your house.  You can get started on my website at www.ToniBird.com/listings.asp. Let me know if I can help toni@tonibird.com.

I woke up this morning at 6:20, peered out the window and there it was SNOW.  They had promised us snow several times this year and didn't deliver so when my husband told me yesterday that it was going to snow today, I just dismissed the thought.  But this morning, with eternal optimism, I took a peak and here it was ‘THE WHITE STUFF".

 I was born in Massachusetts and have many happy childhood memories of playing in the snow.  So I look forward to those infrequent occasions when we receive snow here in Hoover and today I was not disappointed.

 I went back to bed until 7:30 and then arose to drink our morning coffee in the living room while we watched the snowflakes pour from the sky. It was so quiet and peaceful!  It snowed until about 10:30 AM - not enough to stick on the roads, but the wooded areas are just beautiful.  Here are some pictures to enjoy.

Recently we moved to a new home.  It has hardwoods floors through the main level except the master bedroom.

 Personally, I like carpet because it is easier on my feet.  My husband loves the hardwood floors and they DO look nice when you walk in the front door and the wood shines all the way through to the wall of windows on the back of the house.

 I wanted a rug in the living room because I thought it would make the room look more cozy.  Rug shopping wasn't easy.  Have you ever tried to "flip" rugs?  You know they have someone working in the rug store whose job it is just to flip rugs.  Boy, I bet they are tired at the end of the day!  I wanted something that was more contemporary and opposed to the old oriental looking rugs.  Then of course, we had to have the correct colors....  Needless to say, this was something you had to SHOP for.

 Getting a new rug was only one of many projects you take on after buying a new house. You have to arrange furniture and "decorate". One thing we noticed is that Maggie didn't want to sit in the Living Room with us.  She would either sit by the front door and look out (she is quite a "watch dog"), or she would go to the master bedroom and sleep.  She would come out to be petted when we were watching TV, then go back to sleep in the bedroom.

 Last week we finally brought home a rug for the living room.  It wasn't quite the size we were looking for - but we were pretty tired of "shopping" - so we had to work with it.  After a couple of days of arranging and rearranging, we settled on the location of the rug and furniture.  I am really happy with the end result.

AND SO IS MAGGIE.  Maggie LOVES the rug.  Now she is quite happy and takes several naps a day on the rug, and sits with the family when we watch TV or read in the living room.  Rugs add comfort to YOUR life and YOURS DOGS dogs.

If you'd like to find a new home that you can decorate, I can help.  Contact me at 205-821-3312 or e-mail at Toni@ToniBird.com

The New Stimulus Bill that President Obma just signed into law gives First Time Home Buyers a TAX CREDIT of 10% of the purchase price for a home purchased between January 1, 2009 and December 1, 2009.  This means if you buy a home that costs $80,000 or more, you will receive an $8000 tax credit.   The maximum you can receive is $8000, but even if you pay a lot more than 80K for a house, that $8,000 is still a nice little sum.

This 3 Bedroom, 2.5 Bath home for sale in Hoover Alabama is priced at $153,900.  If you purchased this home, you could get an $8000 tax credit next winter!

If you were waiting for something great to happen THIS IS IT.  There was a tax credit in the housing bill that former President Bush signed, however, that one had to be paid back over time.  This Tax Credit for 1^st Time Home Buyers is bigger AND doesn't have to be paid back.

Interest rates are still low and now you get a credit - Not a deduction, so you will pay up to $8000 in less tax.

If you haven't already done so, now is the time to contact a lender and get pre-approved for a loan.  There is nothing you have to apply for to get the credit, just request the credit when you file your 2009 tax return next winter.

You can shop for houses on line at my website www.ToniBird.com,  When you are ready, contact me and I'll help you find the home of your dreams.

Home sales in the Hoover, Alabama were down in January 2009 to 44 - but that number is still higher than they were in November 2008 (33).

In the Hoover Alabama area, the average salesprice was $288,806 with prices ranging from $79,900 for a 3 Bedroom 1 Bath in Chapel Hill, to $599,000 for a 5 bedroom 4.5 Bath in the Ross Bridge.  Currently, there are 927 homes on the market.  Just think of the possibilities!  Of course not every house is for everyone so a realtor can help you sort out what suits your needs. 

Activity of people looking for a home has picked up after the 1^st of February and sales in February and March should increase.

If you would like any specific information about YOUR neighborhood, or to sign up for Hot Breaking News on New Listings, contact me at www.ToniBird.com.