Q & A with Dottie Herman

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Q1 - My wife and I are looking to purchase a home and are unsure about these tax credits. We hope the first time homebuyer tax credit is extended, but what is this other credit we are hearing about for 6500.00?

A - The $6,500.00 tax credit is being proposed for people that have owned their primary residence for at least five years and are buying a new primary residence. This is still on the drawing board and will hopefully pass with the proposed extension of the first time homebuyer's tax credit as it is another wonderful incentive.

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Q2 - My husband and I are trying to figure out if we should sell our home and move to a new house, or stay and update our current home.  Our current house needs a lot of work as it hasn't been updated since the 80's. What are some things we should look at?

A - There are a number of questions you and your husband should ask yourselves to ensure you end with the desired outcome. If you put money into your current residence, will this environment make you happy or would you be settling? After the renovation work, will the house have the necessary room, look and feel that you would have with a new home. Will the amount of money that you will spend exceed the value of your home? Keep in mind although the market values will increase over time, you don't want to over build for the area and create something where you will never see a return on your investment.  Are you totally happy with your neighborhood and school district, or are you ready for that big change?  There are a number of questions you two should ask yourselves and then contact a real estate professional in your area and let them come over and give you an idea of what your market looks like currently. The good news is there is no right or wrong answer; instead the key is to determine what works best for you.  Good luck!

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Q3 - My husband and I are looking to purchase a second home- we are wondering if the rates are going to be higher for that home? Do we have to put more money down?

A - Second home purchase for qualified borrowers typically has the same interest rates as primary residences. Remember this is not for investment properties which are properties that you would be renting out. Yes a second home is an investment, but one that you use as a secondary, summer or vacation home. The current minimum down payment for your second home would be 20%.

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Q4 - My wife and I have our home on the market. We do not have a sign outside of our house and we are wondering if we should re-think that as some people say it increases traffic?

A - A sign outside your house can only help increase traffic.  It is impossible to know who is driving by your house and what opportunities to capture buyers you are missing.  Rather than risk losing a buyer, you should reconsider and contemplate allowing your agent to leave a sign.

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Q5 -  My husband and I are moving from New Jersey to Philadelphia. Since we are constantly packing and our house is not very organized at the moment we have not had any open houses- do you think this is a negative? Would we sell it faster with some open houses?

A - It is possible that your home will sell faster by allowing potential buyers into it on a regular basis.  This means performing open houses as well as permitting scheduled showings.  When you have an open house, do your best to make your home look as presentable as possible.  If doing a weekly open house is too difficult, scheduling them every other week might work for you.  The goal is to get the market in there so you can get offers and a deal done.

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f you have a real estate question for Dottie, please send it to; Dottie@RealEstateChannel.com.
 
NOTE: Due to high volume of questions, not everyone can be answered, but she'll do her best.

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