"All the young dudes"

"carry the news" David Bowie & Mott the Hoople

The pic is of the old fisherman's wharf, back in the day it was a cool place to take the kids because while you were waiting for your dinner the kids could go out on the dock and feed the catfish. It is now scheduled to be a condo clubhouse.

We were discussing in our last week's sales meeting the state of the market. In the month of October there were 596 single family homes sold in Brevard County. Of these 224 were under $100,000 and 245 between 100K and 200K, that leaves 127 over 200K. So it is not hard to figure out that the number of sales are up but the prices are well down.

Merritt Island

There is a complex of condos on S. Tropical,Sunset Bay, which is on the Indian River with pool and exercise room. There are several on the market but the one that grabbed my attention is a 1 bedroom 1 bath, foreclosure priced at $23,800.

A home off Newfound harbor, 3 bedrooms 1 bath built in 1960 and priced at $67,000.

A home in a golf course community with 3 bedrooms 2 baths and pool, priced at $238,000.

Newspaper

There was a article in today's paper that had a consensus of Realtors that thought the prices would go up in 2010, if they are right then it could be the time to buy.

Thanks
Jim Bagwell

Mr. Taxman

"The Beatles"

First time home buyer tax credit.

I am sure most of you know that the 1st time home buyers credit has been extended with additional benefits.

For the 1st time buyer, which means you haven’t owned a principal residence in the prior 3 years. The tax credit remains at $8000 and time frame was extended to May 1, 2010, you have to have a signed contract by this time and have until the end of June to close the transaction. The income level for these buyers is now $125,000 annually and for married couples $225,000.

Current home owners

To me this is exciting news, for current home owners who want to buy a new principal residence, you will get up to $6500 in tax credit. You have to have lived in your current home for 5 consecutive years of the last 8 years. Income levels are the same as 1st time home buyers. This means over 70% of all home owners qualify for this program.

Purchase price of properties is now up to $800,000.

This is a real tax credit and can be used to pay income tax due or added to your refund.

This whole thing is a very good thing for home buyers because of the lowered prices of all kinds of properties now on the market.

Jim Bagwell

"You got to serve somebody"

"It may be the devil or it may be the lord" Bob Dylan

I am sure most people were brought up similar to me to believe that a person’s word is their bond. Especially when a contract is signed to acknowledge this agreement that is the reason that foreclosures and short sales were so distasteful for all of us.

I have since had an epiphany that has really changed my attitude. We have helped many sellers and buyers with short sales and foreclosures and in each situation it was the right thing for both parties. There are so many people out there who are burning through savings and 401K’s to pay for homes and investments which are now valued as much as 50% less than when purchased. Now intelligently speaking this is not the best thing to do for your family or yourself, it is our pride that is forcing us to keep it going. Truth is it will be years before the prices are back to a point to sell at a break even or profit from a sale.

The lenders themselves are the main culprit behind our dilemma. For a few years the banks made huge profits and rolled along, now some have filed bankruptcies’ and others have been bailed out by the government. To pay us back for our generosity some of the bigger banks are now going to charge a fee to their clients that are never late and do not write bad checks, why because they don’t make enough money on the good clients. That is why I now feel that the majority of people, investors included should not have a moments worry over a default.

Some properties to consider:

At the top end, short sale direct Newfound Harbor home priced at $799,000. This home was built in 1979 and features 3709 sq ft, 5 bedrooms and 3 ½ baths, pool screened, 3 car garage, tennis court,2 boat lifts and a tiki bar. All of this sits on 1.22 acre on beautiful Newfound Harbor.

At the lower end a 1600 sq ft home on the canal with 3 bedrooms 2 baths updated in 2005. Priced at $179,900.

These are both short sales!

Jim Bagwell