Permian Basin Homes & Land Magazine© is published weekly. All rights are reserved by copyright, 2009 Print Maniac/Permian Basin Homes & Land (PBHL), Odessa, TX 79760, (800)553-1361. No part of this magazine may be reproduced without the express written consent of Print Maniac/PBHL. The publisher accepts no responsibility for errors in

omissions or content. All terms and conditions of listings advertised are subject to change and any advertising special may be discontinued without notice.

With the revised first-time homebuyer federal income tax credit currently in

effect, now is the perfect time to consider making that big purchase, your first home.

“Buying a home is one of the biggest financial commitments a person can make, but first-time homebuyers and qualified return buyers are in an ideal position to take advantage of unique opportunities in the market, such as low interest rates and the choice among an abundance of for sale homes,” says Charlie Young, president and chief executive officer for ERA Real Estate.

But before you sign on the dotted line, ERA Real Estate, one of the world’s leading residential franchise networks, offers some helpful tips to ease the transition into homeownership.

Learn about the first-time homebuyer federal income tax credit

If you are considering purchasing your first home, or have not owned for at least three years, learn the parameters of the temporary first-time homebuyer tax credit, which is one of 10 provisions of the American Recovery and Reinvestment Act signed into law on Feb. 17, 2009. According to FederalHousingTaxCredit.com -- a consumer Web site created by the National Association of Home Builders -- for those who qualify and purchase before Dec. 1, 2009, the bill provides a tax credit of up to $8,000, calculated at 10 percent of the purchase price. Unlike the previously available credit from 2008, the money does not have to be repaid, as long as the homebuyer does not resell the house for at least three years. “The tax credit can help make the American dream

of homeownership a reality for potential buyers who previously could not afford the investment,” says Young. He adds that potential homebuyers should consult with a professional tax adviser for full details on how the tax credit may benefit them.

Calculate what you can afford

Before you start searching for your new home, know what you can afford. According to the U.S. Department of Housing and Urban Development, your total monthly mortgage payment -- which includes principal, interest, taxes and insurance -- should be about 29 percent of your monthly gross income.

What you can afford is also based on, among other things, how large of a down payment you can make and how much money you can borrow. You can start estimating this figure by using an affordability or loan calculator found on the Internet. These calculators can help compute what may fit comfortably within your budget based on factors such as annual income, annual debts, interest rates and credit score. Though Internet calculators and statistics are good references, it is recommended that you consult a financial adviser to determine exactly how much you can afford.

Choose a neighborhood

After you determine your home buying budget, think about where you want to live. Are you going to stay in your current neighborhood, or do you want to hit the open road and start fresh? No matter what, you should thoroughly research the demographics of the area. Some additional

factors to consider are how far you will be from work and shopping -- and if you have children, do some careful research on schools.

Make a wish list of needs and wants

Early in the home-searching process, list your basic needs such as minimum square footage, number of bedrooms and bathrooms, location and of course, the price you can afford. Web sites of leading real estate brands should have guided property searches that allow you to choose one or more of these criteria. If there are features that you would love to have in your home, but could live without, put them on your “want” list. This includes things like a pool, big yard, extra bedroom, etc.

Work with an experienced real estate professional

Searching for and purchasing your first home is an exciting experience, but it can be overwhelming. To help each step in the home buying process run smoothly, consider working with a seasoned real estate professional. Choosing a professional who is knowledgeable in your local and national markets, has access to the newest listings, and can help you negotiate prices, will increase the chances of finding your dream home.

To locate a real estate professional in your area and to learn more about home buying and the first-time homebuyer tax credit, visit ERA.com.

-Courtesy of ARAcontent

First-time homebuyer tax credit: 5 essential tips for new buyers

S m a r t S t r a t e g i e s to increase home sale profits

The proposition of selling a home is getting better with each passing day according to

a recently released report from the National Association of Realtors. If you need to sell your home, a few smart strategies can help you increase your profits.

A number of real estate pundits are pointing to the recent decline in home inventory and the fact that interest rates have increased on the 30-year fixed mortgage as a positive endorsement of a healthier housing market.

Joanne Sebby, a licensed real estate broker in Chicago, and operator of a local Two Men and a Truck moving franchise, believes she’s benefitting from what could be the start of a real estate “bloom,” if not a full “boom.”

“Bargain hunters are beginning to make moves on homes that are still way undervalued’’ Sebby says. “The key for sellers is to get creative in marketing your home’s offerings so you can become one of those homes that get a look, and hopefully sell your house in a reasonable amount of time.”

While the real estate outlook is the best it’s been in recent memory, home loans are still more difficult to come by and home values are down an average of 20 percent, according

to the NAR. It’s likely that if you are selling your house today, you’ll likely do so at the cost of higher profits that you may have realized in healthier markets.

Regardless, Sebby suggests there are a number of creative ways home sellers can mitigate their losses on the sale.

“Most home sales involve some service-oriented companies such as moving companies, carpet cleaners, painters or other services,” she says.

Sebby suggests sellers need to think of their bottom line when selecting service companies in order to maximize profits on their home, and consider pitching in to keep costs down.

“Determine what budget you have to work with and be up front with the people providing you with estimates,” Sebby says. “I’ll often counsel people who call our moving company to maybe box and label everything themselves, or have all the boxes collected in the room closest to the front door. If there’s a number we have to work with, we’ll make suggestions on how to make it work to suit their needs.”

Sebby suggests using the same tactics with home inspectors, painters or other service personnel.

“Do a little research and find what portion of the work you can comfortably do yourself. If you’re saving money along the way it’s going to impact your profit on the house. A little bit here and there can really add up.”

Brig Sorber, president and chief executive officer of Two Men and a Truck -- the nation’s largest franchised moving company -- believes the current housing market provides more opportunity than risk.

“As a business owner, you look at your operations a little closer and ideally come away with a clearer understanding of what your company needs to do to stay competitive,” Sorber says. “The same principle applies to homeowners looking to sell. In an optimal market, a buyer may just scan the Internet, find a local mover and sign on the dotted line. Today’s customer is more aware; they’ve done competitive research on what to expect from a legitimate moving company, and that benefits those of us who value long-term relationships with our customers.”

Chances are, even sellers with the best intentions won’t realize the full value of their home in today’s market. However, as Sebby suggests, there’s no harm in optimizing your profits with a little extra effort and a do-it-yourself approach.

(Courtesy of ARAcontent)

Have you checked your homeowners insurance policy lately? If not, then it is time to review it and check if the amount written in the document

is adequate to cover the total cost of rebuilding your home if it is destroyed by fire, flood, windstorm or any other catastrophe that can happen in your area.

The following steps will guide you in checking whether your house is adequately insured:

•Review your home insurance policies.

List what risks are covered and not covered. If your house is located in California, you should have earthquake coverage. Likewise, if you live in a flood-prone area, you should have flood coverage. Are there materials in your house structure that are costly to replace? Then they must be covered.

•Check building costs in your city or town from time to time.

Research the web sites of building contractors in your area and check their estimates. Look at the current prices of homes similar to your own.

•Update your checklist of valuable personal possessions regularly.

Have you recently purchased an expensive jewelry? Have you overlooked something valuable when you were making your first list of possessions to be covered? Then it is time to update your personal possessions coverage.

•Increase your home insurance coverage after a major remodeling project.

List all your remodeling expenses and then consult yourinsurance agent how your policy can be adjusted to cover your house improvement. •Research additional homeowners insurance coverages available in your state.

Is your house located in an area prone to mudslides? Do you conduct business in the premises of your home? Then you should consider additional coverage. •Be updated on developments in your state that could affect your home insurance.

Be well-informed. Are there regulations that limit certain types of coverages such as mold coverages? Is your home insurance company involved in a major claims lawsuit? Then you must consult your insurance agent immediately.

Home Owners Insurance: Make Sure Your Home Insurance Coverage Is Adequate

“All real estate advertised herein is subject to the Federal Fair Housing Act, which makes it illegal to advertise any preference, limitations, or discrimination based on race, color, religion, sex, handicap, familial status, or national origin, or intention to make any such preferences, limitation, or discrimination. We will not knowingly accept any

advertising for real estate which is in violation of the law. All persons are hereby informed that all dwellings advertised are available on an equal opportunity basis.”