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	<title>Susan Rauth &#187; Omaha</title>
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		<title>14 Tips for Finding the Best Neighborhood</title>
		<link>http://www.susanrauth.com/2013/02/04/14-tips-for-finding-the-best-neighborhood/</link>
		<comments>http://www.susanrauth.com/2013/02/04/14-tips-for-finding-the-best-neighborhood/#comments</comments>
		<pubDate>Tue, 05 Feb 2013 03:11:24 +0000</pubDate>
		<dc:creator><![CDATA[Omahaadmin13]]></dc:creator>
				<category><![CDATA[Find the Right Property]]></category>
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		<guid isPermaLink="false">http://www.susanrauth.com/?p=1118</guid>
		<description><![CDATA[Moving can be one of the most expensive and life-changing financial transactions a family will make. While a move can be exciting, it is also very stressful — right up there with losing a job and the death of a loved one. Yikes. Of course, relocation services can take some of the worry off your [&#8230;]]]></description>
				<content:encoded><![CDATA[<p>Moving can be one of the most expensive and life-changing financial transactions a family will make. While a move can be exciting, it is also very stressful — right up there with losing a job and the death of a loved one. Yikes.</p>
<p>Of course, relocation services can take some of the worry off your shoulders. But they can cost thousands of dollars. The good news is you can manage a move by yourself, save tons of money, and still have some sanity left on the other end.</p>
<p>In this three-part series, I’ll talk about:</p>
<ul>
<li>How to identify the best neighborhood for your family</li>
<li>Unconventional ways of finding a great house (with a focus on rental properties)</li>
<li>Finding a trustworthy mover and organizing the details of your relocation</li>
</ul>
<p>My family and I are in the midst of our fourth long-distance move (including one overseas), and as a single I packed up house six times. While I’m not a relocation expert (yet), I hope that the skills I’ve gained from our itinerant lifestyle can help others make the experience a little less daunting.</p>
<h4>HOW TO FIND A GOOD NEIGHBORHOOD</h4>
<p><a href="http://www.susanrauth.com/wp-content/uploads/2013/02/neighborhood.jpg"><img class="alignleft size-full wp-image-1119" alt="neighborhood" src="http://www.susanrauth.com/wp-content/uploads/2013/02/neighborhood.jpg" width="300" height="300" /></a></p>
<p>Finding the right neighborhood is a huge factor in determining the success of your move. Because we all have different needs, tastes and lifestyles, there is no “best neighborhood.” One person’s paradise might be another’s dungeon.</p>
<p>Here are some methods for finding the right place for you. I suggest trying as many of them as you can. Finding a neighborhood is like assembling a mosaic: each small tile you place will help you see the big picture more clearly.</p>
<h3>Fun Online Tools</h3>
<p>Of course visiting neighborhoods in person should be at the top of your list. But with kids in tow and travel expensive, sometimes much of the legwork has to be done long-distance.</p>
<h4>NeighborhoodScout.com</h4>
<p><a title="NeighborhoodScout.com" href="NeighborhoodScout.com"><img class="alignleft size-full wp-image-1120" alt="neighborhoodscout.com" src="http://www.susanrauth.com/wp-content/uploads/2013/02/neighborhoodscout.jpg" width="550" height="300" /></a></p>
<p>Recommended by Money magazine, NeighborhoodScout can help you search for the best neighborhoods for you, with categories such as urban sophisticates, first-time homebuyers, or great deals on great towns. In the advanced search you can even select median home value and an urban, suburban or rural setting.</p>
<p>If you’d like to find out more about a certain place, type its name in the Learn tab and get all sorts of details about a neighborhood and its residents, such as age and lifestyle, education level and income. The description tab is an especially welcome feature, which distills the statistics and gives you a written overview of the neighborhood.</p>
<p>NeighborhoodScout also has a neat Match tool where you can search for neighborhoods that are similar to ones that you already know and love.</p>
<h4>You Are Where You Live</h4>
<p>Another site that can give you a feel for the type of people that live in a certain zip code is You Are Where You Live. Based on a “lifestyle segmentation” system called PRIZM from the Nielsen Company, it classifies consumers into 66 categories — like Shotguns &amp; Pickups, Bohemian Mix and Newlyweds — based on census data, consumer surveys, and other sources of demographic and consumer information.</p>
<p>Because PRIZM operates on the principle that “birds of a feather flock together,” it can be a curious exercise to type in your own neighborhood and see if they’ve got your number.</p>
<h4>WalkScore.com</h4>
<p><a title="Walkscore.com" href="WalkScore.com"><img class="alignleft size-full wp-image-1121" alt="walkscore.com" src="http://www.susanrauth.com/wp-content/uploads/2013/02/walkscore.jpg" width="550" height="300" /></a></p>
<p>If you’re like me and you enjoy being able to walk to shops, restaurants, banks, and schools, WalkScore is an excellent site to know about. WalkScore ranks the most walkable nabes in the 40 largest cities, or if you want to know about a particular neighborhood or house, you can type in an address or a zip code and get a walkability score from 1 to 100 and a classification like “car-dependent”, “somewhat walkable,” or “walker’s paradise.”</p>
<h4>GreatSchools.org</h4>
<p><a title="Greatschool.org" href="http://www.greatschools.org/"><img class="alignleft size-full wp-image-1122" alt="greatschool.org" src="http://www.susanrauth.com/wp-content/uploads/2013/02/greatschool.jpg" width="550" height="300" /></a></p>
<p>While I believe GreatSchools is the best of the school ranking sites out there, I recommend using it as just one of the many ways you judge a school. Test scores — upon which most of their ratings are based –are only one aspect of a school’s overall success.</p>
<p>It’s tempting to whittle down your list based on this concrete, easily-obtained information. But if you are very interested in a neighborhood for other reasons, I would not write the area off simply because its elementary school gets a 2 out of 10.</p>
<p>I have personally known schools to have low ratings on GreatSchools, but to be well-loved places where kids are engaged, challenged and thriving. Oftentimes scores are outdated, don’t reflect the dynamism of the teaching, a new principal, or how your child would do in that school.</p>
<p>Finally, standardized test scores and demographic information cannot replace a personal visit to a school, where you will immediately get a feeling about a place (see below). Don’t underestimate the mother’s gut!</p>
<p>Also talking to parents who have children currently at the school is another great way to get a reading on whether you would be happy there or not. (GreatSchools may have a few parent reviews about your school, but I would not count on them as an indicator of how most parents feel about a school. And really, the most important thing is how you feel about a school.)</p>
<p>Tip: If you are not only looking for a neighborhood, but a city to live in, you might want to check out GreatSchool’s Best Cities to Live and Learn. The series includes sub-articles on small, midsize and large cities with outperforming public schools, as well as articles which rate towns with great public schools based on median home prices that range from under <a title="Top public schools: Under $100,000" href="http://www.greatschools.org/find-a-school/moving/slideshows/2338-top-public-schools-under-100K.gs">$100,000</a> to <a title="Top public schools: $800,000 or more" href="http://www.greatschools.org/find-a-school/moving/slideshows/2324-top-public-schools-800K.gs">$800,000 or more</a>.</p>
<h3>Researching on the Web</h3>
<h4>Mamapedia.com</h4>
<p><a title="Mamapedia" href="http://www.mamapedia.com/"><img class="alignleft size-full wp-image-1123" alt="mamapedia.com" src="http://www.susanrauth.com/wp-content/uploads/2013/02/mamapedia.jpg" width="550" height="300" /></a></p>
<p>Sarah from Buttoned Up recommends asking the moms at Mamapedia for advice about your new destination. While this national networking resource probably won’t replace locally based groups (see below), it’s a good place to start asking questions about your city.</p>
<p>Use parent networks like this to find out more than just places to live. In a search for Syracuse, I found moms exchanging advice about OBs, pediatricians and babysitters. If you don’t find what you are looking for searching with key words, sign up and post a query yourself.</p>
<p><strong>Tip:</strong> If you introduce yourself first — telling a little bit about you and your family and what brings you to the area — you might just sow the seeds of some future friendships.</p>
<p>Neighborhood Reviews in City Newspapers and Magazines<br />
Many cities have a column dedicated to reviewing area neighborhoods each week. In the Washington Post, for example, the column is called “Where We Live.” The New York Times has “Living In,” and New York magazine as well as Time Out Kids both run regular neighborhood write-ups and ratings.</p>
<p>See if you can get an online or paper copy of the local newspaper and magazine and check out the real estate or living section.</p>
<p>I love these articles because they mean an intelligent person has already done a lot of the legwork: touring the hood, investigating its history, talking to residents, evaluating housing prices and commute times, and identifying some of the pros and cons of living in the area.</p>
<h4>Good ol’ Google</h4>
<p>Type in your city or county name with some characteristics you desire, such as “walkable,” “historic district” or “charming downtown.” I found a few fantastic New York suburbs this way, and while we didn’t end up moving there, it gave me hope that there are places that are really right for us if we are just willing to unearth them.</p>
<h3>Person-to-Person</h3>
<h4>Mine Your Personal Networks for Local Contacts</h4>
<p>When we told people we were moving to Syracuse, we were surprised at the amount of friends, acquaintances and colleagues who actually knew people who lived there.</p>
<p>To speed the process, try writing an email to everyone you know asking if they know someone with experience in your city. Once you make the connection, ask each person what neighborhoods they like best and which ones would they recommend for you.</p>
<p>While I had these personal contacts on the phone, I also asked their tips for finding rental houses, parent groups, and schools.</p>
<h4>Join Local Parent Groups and Ask Questions</h4>
<p>These online networks are invaluable sources of information. Most membership mom groups will have an email loop that you can join before you move there and some are strictly online networks. You can search the archives or just fire away. I’m sure you’ll get lots of input from local moms who have been in the same situation you’re in.</p>
<p>How to find one in your area? Ask your new-found contacts (or Mamapedia moms). Search the online version of the local newspaper for articles about parenting or mom groups. Another way to find people with similar interests is to search <a title="Yahoo Groups" href="http://groups.yahoo.com/">Yahoo Groups</a>, <a title="Google Groups" href="https://groups.google.com/forum/?fromgroups#!overview">Google Groups</a>, and <a title="MeetUp" href="http://www.meetup.com/">MeetUp</a>.</p>
<p>Once you’ve found some, join the ones that you can for free and from a distance. Introduce yourself in an email and ask members to recommend neighborhoods with the characteristics you seek.</p>
<h4>Use Your Alumni Network</h4>
<p>Most colleges have an alumni organization. I can search mine for fellow graduates by city and other things like field of work and date of graduation.</p>
<p>When internet searching was leaving me thirsty for more information about our future city, I found a few people who lived there and who graduated around the same time I did.</p>
<p>Even though I didn’t know them from Adam, I just called and said we’d gone to school together and that I was moving to the area. Did they have a minute to give me a lay of the land?</p>
<h4>Nothing Beats Your Own Eyes, Ears and Sixth Sense</h4>
<p>As mentioned before, neighborhoods will appeal to different people in different ways. A place one person raves about may throw another over the edge. Just remember that you are on a fact-finding mission and you might end up with a conclusion that will surprise you.</p>
<p>No one source is going to provide you with your answer. It will be a process of gathering and selecting, like sifting sand at the beach. Eventually you’ll end up with a few pretty shells to examine further.</p>
<p>That’s when it’s time to pack your bags and go see for yourselves.</p>
<h4>Reconnaissance Trip</h4>
<p>With no car, three kids and a tight budget, we didn’t visit our new city until we actually had some houses lined up to look at. But if we had, we would have saved ourselves a lot of time and effort.</p>
<p>Neighborhoods will usually affect you in a visceral way. You’ll know pretty quickly if it’s a place you’d feel comfortable or not. This will help you eliminate houses that look great on their own, but whose surroundings would not fit your bill.</p>
<h4>Check out the Neighborhood from All Angles</h4>
<p>In How to Find a Good Neighborhood, the Life Hacker blog recommends visiting a neighborhood at different times of day and night.</p>
<p>Check out the area at rush hour and on the weekends. You might find the place comes to life on the weekends (or the opposite), that traffic on the single thoroughfare is unbearable, or that university students hog all the street parking on weekdays.</p>
<p>Lifehacker also advises, “If you depend on public transportation, find out how accessible it is in this area. Drive to and from the house from several different directions, so you see both the scenic and not-so-scenic routes.”</p>
<h4>Visit Schools, Libraries and Playgrounds</h4>
<p>Make appointments with schools in neighborhoods you think you’ll like. Ask to tour the school and meet the principal. Peek in classrooms. Do the children seem engaged and happy? Do the staff seem cheerful and friendly?</p>
<p>If you and your children like to frequent the public library, it’s easy to walk in and check out what the local branch has to offer, who uses it, and what is posted on their bulletin board. Same goes for the town playground.</p>
<h4>Go to Open Houses</h4>
<p>Even if you’re not serious about buying or renting a house in the area, it doesn’t waste anyone’s time to show up at a scheduled open house. Touring a local house will give you a more intimate view of a neighborhood, almost from the inside out. Plus you might get a chance to talk to the real estate agent or other house-seekers about the area.</p>
<h4>Eat at Local Hang-Outs</h4>
<p>Ask your new mom networks their favorite cafe’s, or go to the town center and arrive at a restaurant at prime time: say 6 pm on a Saturday night. You’ll get a sense of the kind of residents the place has and how friendly people are.</p>
<p>You might also visit the YMCA, community center, hardware store or even post office. Check out the bulletin boards and observe people interacting in everyday ways.</p>
<p>Every place you visit will help you flesh out your picture of a place. And once you’ve figured out some neighborhoods that will make you happy, it’s time to find that perfect house.</p>
<p>Stay tuned to Frugal Mama for the next three installments: How to Find a Quality House to Rent, Finding a Low-Cost Mover Without Getting Scammed, and Frugal Mama’s Moving Checklist.</p>
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		<title>Uptrend Expected Through 2014 in Housing Market</title>
		<link>http://www.susanrauth.com/2012/11/13/uptrend-expected-through-2014-in-housing-market/</link>
		<comments>http://www.susanrauth.com/2012/11/13/uptrend-expected-through-2014-in-housing-market/#comments</comments>
		<pubDate>Tue, 13 Nov 2012 23:19:02 +0000</pubDate>
		<dc:creator><![CDATA[Omahaadmin13]]></dc:creator>
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		<guid isPermaLink="false">http://www.susanrauth.com/?p=1029</guid>
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             Lawrence Yun , chief economist of the National Association of Realtors®, said the housing market clearly turned around in 2012. "Existing-home sales, new-home sales and housing starts are all recording notable gains this year in contrast with suppressed activity in the previous four years, and all of the major home price measures are showing sustained increases," he said.
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              <a href="http://www.susanrauth.com/?p=1029"><img title="Uptrend Expected Through 2014 in Housing Market'" src="http://www.susanrauth.com/images/Blog/housing_market_uptrend.jpg" alt="" width="300" height="200" /></a></div></div></td>  
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				<content:encoded><![CDATA[<p><a href="http://www.susanrauth.com/?p=1029" target="_blank" data-ls-seen="1" data-ls-existing-link-tracked="1"><img src="http://www.susanrauth.com/images/Blog/housing_market_uptrend.jpg" alt="House Market Trends" width="500" height="345" /><br />
</a></p>
<p><a title="Walter Molony" href="http://www.realtor.org/bios/walter-molony" target="_blank"><strong>By Walter Molony</strong></a></p>
<p>ORLANDO (November 9, 2012) &#8211; The housing market recovery should continue through the coming years, assuming there are no further limitations on the availability of mortgage credit or a &#8220;fiscal cliff,&#8221; according to forecast presentations at a residential forum here at the 2012 Realtors<sup>®</sup>Conference and Expo.</p>
<p><a href="http://www.realtor.org/research/chief_economist_bio">Lawrence Yun</a> , chief economist of the <a title="NAR" href="http://www.realtor.org/" target="_blank">National Association of Realtors</a><sup>®</sup>, said the housing market clearly turned around in 2012. &#8220;Existing-home sales, new-home sales and housing starts are all recording notable gains this year in contrast with suppressed activity in the previous four years, and all of the major home price measures are showing sustained increases,&#8221; he said.</p>
<p><a href="http://www.susanrauth.com/wp-content/uploads/2012/11/Lawrence-Yun.png"><img class="alignleft size-full wp-image-1033" title="Lawrence Yun" src="http://www.susanrauth.com/wp-content/uploads/2012/11/Lawrence-Yun.png" alt="" width="289" height="176" /></a></p>
<p>&#8220;Disruption from Sandy likely will be temporary, notably in New Jersey and New York, but the market is likely to pick up speed within a few months with the need to build new homes in damaged areas,&#8221; Yun added.</p>
<p>Yun sees no threatening signs for inflation in 2013, but projects it to be in the range of 4 to 6 percent by 2015. &#8220;The huge federal budget deficit is likely to push up borrowing costs and raise inflation well above 2 percent,&#8221; he said.</p>
<p>Rising rents, quantitative easing (the printing of money), federal spending outpacing revenue, and a national debt equal to roughly 10 percent of Gross Domestic Product are all raising inflationary pressures.</p>
<p>Mortgage interest rates are forecast to gradually rise and to average 4.0 percent next year, and 4.6 percent in 2014 from the inflationary pressure.</p>
<p>With rising demand and an ongoing decline in housing inventory, Yun expects meaningfully higher home prices. The national median existing-home price should rise 6.0 percent to $176,100 for all of 2012, and increase another 5.1 percent next year to $185,200; comparable gains are seen in 2014.</p>
<p>&#8220;Real estate will be a hedge against inflation, with values rising 15 percent cumulatively over the next three years, also meaning there will be fewer upside-down home owners,&#8221; Yun said. &#8220;Today is a perfect opportunity for moderate-income renters to become successful home owners, but stringent mortgage credit conditions are holding them back.&#8221;</p>
<p>Existing-home sales this year are forecast to rise 9.0 percent to 4.64 million, followed by an 8.7 percent increase to 5.05 million in 2013; a total of about 5.3 million are seen in 2014.</p>
<p>New-home sales are expected to increase to 368,000 this year from a record low 301,000 in 2011, and grow strongly to 575,000 in 2013. Housing starts are forecast to rise to 776,000 in 2012 from 612,000 last year, and reach 1.13 million next year.</p>
<p>&#8220;The growth in new construction sounds very impressive, and it does mark a genuine recovery, but it must be kept in mind that the anticipated volume remains below long-term underlying demand,&#8221; Yun said. &#8220;Unless building activity returns to normal levels in the next couple years, housing shortages could cause home prices to accelerate, and the movement of home prices will be closely tied to the level of housing starts.&#8221;</p>
<p>&#8220;Home sales and construction activity depend on steady job growth, which we are seeing, but thus far we&#8217;ve only regained half of the jobs lost during the recession,&#8221; Yun said.</p>
<p>Yun projects growth in Gross Domestic Product to be 2.1 percent this year and 2.5 percent in 2013. The unemployment rate is showing slow, steady progress and is expected to decline to about 7.6 percent around the end of 2013. &#8220;Of course these projections assume Congress will largely avoid the &#8216;fiscal cliff&#8217; scenario,&#8221; Yun said. &#8220;While we&#8217;re hopeful that something can be accomplished, the alternative would be a likely recession, so automatic spending cuts and tax increases need to be addressed quickly.&#8221;</p>
<p>Regardless, Yun said that four years from now there will be an even greater disparity in wealth distribution. &#8220;People who purchased homes at low prices in the past couple years, including many investors, can expect healthy growth in home equity over the next four years, while renters who were unable to get into the market will be in a weaker position because they are unable to accumulate wealth,&#8221; he said. &#8220;Not only will renters miss out on the price gains, but they&#8217;ll also face rents rising at faster rates.&#8221;</p>
<p>Also speaking was Mark Vitner, managing director and senior economist at Wells Fargo, who said the fiscal cliff is the biggest situation that needs to be addressed. &#8220;Beyond concerns about the fiscal cliff, the economic improvement seems to be broadening,&#8221; he said.</p>
<p>&#8220;Housing will strengthen in 2013 even if the economy weakens because there is a demand for more construction, and the demand for apartments is rising at a faster rate than the need for more single-family homes,&#8221; Vitner said. &#8220;Unfortunately, apartment construction is focused on about 15 submarkets, so additions to supply will be uneven.</p>
<p>Even with declining market shares of foreclosures and short sales, Vitner said they will continue. &#8220;Distressed homes right now are like an after-Christmas sale &#8211; most of the best stuff has been picked over, but make no mistake they&#8217;ll be with us for a while.&#8221;</p>
<p>Yun projects the market share of distressed sales will decline from about 25 percent in 2012 to 8 percent in 2014.</p>
<p><a title="Housing Market Uptrend Expected Through 2014" href="http://www.realtor.org/news-releases/2012/10/housing-market-uptrend-expected-through-2014" target="_blank">Original Article &#8211;&gt;</a></p>
<p>The National Association of Realtors<sup>®</sup>, &#8220;The Voice for Real Estate,&#8221; is America&#8217;s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.</p>
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		<title>10 GREAT CITIES TO RAISE YOUR KIDS</title>
		<link>http://www.susanrauth.com/2012/05/31/10-great-cities-to-raise-your-kids/</link>
		<comments>http://www.susanrauth.com/2012/05/31/10-great-cities-to-raise-your-kids/#comments</comments>
		<pubDate>Thu, 31 May 2012 23:30:58 +0000</pubDate>
		<dc:creator><![CDATA[Omahaadmin13]]></dc:creator>
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		<guid isPermaLink="false">http://www.susanrauth.com/?p=802</guid>
		<description><![CDATA[          <table width="550" border="0" cellspacing="0" cellpadding="0">
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             The city that bore Warren Buffett is a great place to raise children — though there’s no guarantee they’ll grow up to be billionaire investors. Southwestern Omaha, in particular, is an idyll of good schools, tended sports fields and tidy cul-de-sacs.
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				<content:encoded><![CDATA[<p><strong>1. Omaha, Nebraska</strong></p>
<p><a title="10 GREAT CITIES TO RAISE YOUR KIDS"><img class="alignnone" title="Omaha" src="http://susanrauth.com/images/Blog/Omaha.jpg" alt="" width="500" height="375" /></a></p>
<div id="articleColumn1">
<p><strong>City population: </strong>408,958</p>
<p><strong>Average family income: </strong>$78,466</p>
<p><strong>Percentage of families with children: </strong>28.3%</p>
<p><strong>Metro-area spending per student: </strong>$6,077</p>
<p><strong>Public playgrounds: </strong>157</p>
<p>The city that bore Warren Buffett is a great place to raise children &#8212; though there’s no guarantee they’ll grow up to be billionaire investors. Southwestern Omaha, in particular, is an idyll of good schools, tended sports fields and tidy cul-de-sacs. The Millard School District, home to Nebraska&#8217;s only K-12 International Baccalaureate program, features sky-high standardized test scores, a top-ranked music program and one of the country&#8217;s best school library systems (according to the American Association of School Librarians, which awarded Millard top honors in 2003). In the western suburbs especially, crime rates are low enough for kids to walk to school worry-free.</p>
<p>And there&#8217;s plenty to do in the city itself: A zoo, a children&#8217;s museum and a 64-year-old children&#8217;s theater anchor Omaha&#8217;s kid-friendly offerings. <strong>Parents, meanwhile, enjoy living costs 10.5% below the national average, a modest 4.7% unemployment rate and well-paid jobs</strong> at major companies, including Union Pacific and the aforementioned Buffett’s Berkshire Hathaway.</p>
<p>Read more: <a href="http://www.kiplinger.com/slideshow/10-great-cities-to-raise-kids/11.html#ixzz1wUcSg9x9">http://www.kiplinger.com/slideshow/10-great-cities-to-raise-kids/11.html#ixzz1wUcSg9x9</a><br />
<a href="http://www.facebook.com/#!/pages/Kiplingers-Personal-Finance-magazine/65904782836" target="_blank">Become a Fan of Kiplinger&#8217;s on Facebook</a></p>
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		<title>Home Prices Show Strongest Gain in 6 Years: NAR</title>
		<link>http://www.susanrauth.com/2012/05/31/home-prices-show-strongest-gain-in-6-years-nar/</link>
		<comments>http://www.susanrauth.com/2012/05/31/home-prices-show-strongest-gain-in-6-years-nar/#comments</comments>
		<pubDate>Thu, 31 May 2012 23:22:29 +0000</pubDate>
		<dc:creator><![CDATA[Omahaadmin13]]></dc:creator>
				<category><![CDATA[For Buyers]]></category>
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		<guid isPermaLink="false">http://www.susanrauth.com/?p=797</guid>
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             The median price of an existing home climbed 10.1 percent to $177,400 from $161,100 in April 2011, the strongest year-to-year gain since January 2006. The median price in April reached its highest level since July 2010 when it was $182,100.  

The inventory of homes for sale in April rose to 2.54 million, the highest level since last November, bringing the months’ supply of homes on the market to 6.6.</a>
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				<content:encoded><![CDATA[<p><strong>Home Prices Show Strongest Gain in 6 Years: NAR</strong></p>
<p>Existing-home sales rose to 4.62 million (seasonally adjusted annualized rate) in April from a downwardly revised March rate of 4.47 million, the <a href="http://www.realtor.org/" target="_blank">National Association of Realtors</a> (NAR) reported Tuesday. Economists had forecast the April sales pace would be 4.66 million.</p>
<p><a title="Warren Buffett Bullish on Housing"><img class="alignnone" title="Warren Buffet" src="http://susanrauth.com/images/Blog/Prairie_house.jpg" alt="" width="500" height="300" /></a></p>
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<p>The median price of an existing home climbed 10.1 percent to $177,400 from $161,100 in April 2011, the strongest year-to-year gain since January 2006. The median price in April reached its highest level since July 2010 when it was $182,100.</p>
<p>The inventory of homes for sale in April rose to 2.54 million, the highest level since last November, bringing the months’ supply of homes on the market to 6.6.</p>
<p>The 10.0 percent yearly gain in the sales rate was the strongest since October when sales were up 14.0 percent year-over-year.</p>
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<p>Distressed homes – foreclosures and short sales sold at deep discounts – accounted for 28 percent of April sales (17 percent were foreclosures and 11 percent were short sales), down from 29 percent in March and 37 percent in April 2011, the NAR said. Foreclosures sold for an average discount of 21 percent below market value in April (compared with an average discount of 19 percent in March), while short sales were discounted 14 percent in April compared with 16 percent in March.</p>
<p>The months’ supply of existing homes for sale remains well below the July 2010 cyclical peak of 12.4 which had been the highest level since 1982. Inventories as tracked by theNAR are 20.3 percent below their year ago level. However, anecdotal evidence suggests there is still a large “shadow” inventory of homes available for sale, especially bank-owned properties.</p>
<p>Regionally, existing-home sales rose in April in every region of the country led by a 5.1 percent month-to-month increase in the Northeast where sales were up19.2 percent over April 2011. Sales rose 4.4 percent over March in the West (a 7.3 percent year-year gain), 3.5 percent in the South (6.5 percent year-year) and 1.0 percent in the Midwest (14.4 percent year over year).</p>
<p>The median price of an existing home rose month-to-month and year-to-year in all four regions. At $256,600, the median price of an existing home reached its highest level since August 2010. The median price of an existing home in the South rose to $153,400, the highest level since July 2010 and the median price of an existing home in the West rose to $221,700, also the highest since July 2010.</p>
<p>The year-to-year price gain in the West, 15.9 percent, was the strongest since November 2005. The year-to-year price increase in the Northeast was the first since last June.</p>
</div>
<p>To view the original article, click here:<a href="http://www.dsnews.com/articles/existing-home-sales-rise-in-april-for-after-two-month-month-drops-prices-show-strongest-year-year-gain-6-years-2012-05-22" rel="nofollow" target="_blank">http://www.dsnews.com/articles/existing-home-sales-rise-in-april-for-after-two-month-month-drops-prices-show-strongest-year-year-gain-6-years-2012-05-22</a></p>
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		<title>Fannie&#8217;s Squeeze on Banks Makes 4% Mortgage Too Good to Be True</title>
		<link>http://www.susanrauth.com/2011/10/30/fannies-squeeze-on-banks-makes-4-mortgage-too-good-to-be-true/</link>
		<comments>http://www.susanrauth.com/2011/10/30/fannies-squeeze-on-banks-makes-4-mortgage-too-good-to-be-true/#comments</comments>
		<pubDate>Sun, 30 Oct 2011 18:58:26 +0000</pubDate>
		<dc:creator><![CDATA[Omahaadmin13]]></dc:creator>
				<category><![CDATA[Finance Your Home]]></category>
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             Lenders are insisting on higher credit scores and more documents than required by the Federal Housing Administration and government-backed Fannie Mae and Freddie Mac. Quicken Loans Inc. and Vision Mortgage Capital are among firms saying they are increasing scrutiny of would-be borrowers in response to pressure to cover losses incurred on U.S.-backed housing debt.  "You've got to take measures now to protect yourself," John B. Johnson, chief executive officer of Birmingham, Alabama- based MortgageAmerica Inc., said during a panel discussion this month. Demands that lenders repurchase bad mortgages from Fannie Mae and Freddie Mac are "casting a pall over the market. I fear that it will face a much longer recovery because of this."</a>
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				<content:encoded><![CDATA[<p>By <a href="mailto:jshenn@bloomberg.net">Jody Shenn</a><br />
BUSINESS WEEK</p>
<p><a title="Fannie's Squeeze on Banks Makes 4% Mortgage Too Good to Be True" href="http://www.businessweek.com/news/2011-10-25/fannie-s-squeeze-on-banks-makes-4-mortgage-too-good-to-be-true.html">Original Article &#8211;&gt;</a></p>
<p><img class="alignright" title="Pending Home Sales Rise More Than Expected" src="http://susanrauth.com/images/Blog/dreamhouse.jpg" alt="" width="350" height="500" /></p>
<p>(Bloomberg) &#8212; Government efforts to make lenders pay for soured mortgages may be keeping potential borrowers from record-low interest rates, slowing home sales and refinancing as banks tighten standards to avoid more demands for refunds.</p>
<p>Lenders are insisting on higher credit scores and more documents than required by the Federal Housing Administration and government-backed Fannie Mae and Freddie Mac. Quicken Loans Inc. and Vision Mortgage Capital are among firms saying they are increasing scrutiny of would-be borrowers in response to pressure to cover losses incurred on U.S.-backed housing debt.</p>
<p>&#8220;You&#8217;ve got to take measures now to protect yourself,&#8221; John B. Johnson, chief executive officer of Birmingham, Alabama- based MortgageAmerica Inc., said during a panel discussion this month. Demands that lenders repurchase bad mortgages from Fannie Mae and Freddie Mac are &#8220;casting a pall over the market. I fear that it will face a much longer recovery because of this.&#8221;</p>
<p>Mortgage rates as low as 3.94 percent are proving insufficient to revive housing. Sales of existing homes fell 3 percent last month, National Association of Realtors data show, and 18 percent of the group&#8217;s members reported contract cancellations, at least twice as high as in normal circumstances. Among the reasons were refusals of loan applications after appraisals came in below sales prices.</p>
<p>Faulty mortgage lending and foreclosure practices have cost the five biggest U.S. home lenders more than $68 billion since 2007, according to data compiled by Bloomberg News. Much of the amount has stemmed from losses tied to Fannie Mae, Freddie Mac and the FHA, which together buy or insure more than 90 percent of new mortgages.</p>
<p>&#8216;More Onerous&#8217;</p>
<p>Fannie Mae and Freddie Mac have drawn $170 billion of U.S. aid since being seized 2008. The companies are under orders from their regulator to recover as much as they can for taxpayers.</p>
<p>Lenders&#8217; contracts with Fannie Mae and Freddie Mac allow them to force buybacks of mortgages if the loan originators fail to properly vet debt, such as by accepting inflated borrower incomes or appraisals. Flawed paperwork can lead to pressure from Fannie Mae and Freddie Mac even on performing mortgages.</p>
<p>&#8220;Documentation standards are getting more and more onerous because no one wants to manufacture an imperfect loan, even if the imperfection is really insignificant,&#8221; said Quicken Loans CEO Bill Emerson, who leads the eighth-largest U.S. home lender and No. 1 online mortgage originator.</p>
<p>The response by his Detroit-based company includes having each of its loans reviewed by a second underwriter to ensure the quality isn&#8217;t later questioned, Emerson said in an Oct. 11 interview during the Mortgage Bankers Association&#8217;s annual conference in Chicago.</p>
<p>Septic Tank</p>
<p>MortgageAmerica has had to deal with repurchase demands for seemingly minor issues or ones outside a lenders&#8217; expertise, according to Johnson. In one case, the septic tank for a home was located slightly beyond the mortgaged property. The natural response, he said, is to limit lending.</p>
<p>The Justice Department sued Deutsche Bank AG in May for more than $1 billion for alleged failures by the company&#8217;s shuttered lending unit to meet FHA standards. The U.S. sued under the False Claims Act, which allows damages three times the size of loss. Deutsche Bank has said the case targets conduct that occurred before it bought the unit and a spokeswoman for the company called the allegations &#8220;unreasonable and unfair.&#8221;</p>
<p>Lenders are probably &#8220;overcompensating&#8221; for the risk they face from soured mortgages, said Robert C. Ryan, a senior adviser to the head of U.S. Department of Housing and Urban Development, which oversees the FHA. &#8220;We&#8217;re not in the business of trying to scare lenders.&#8221;</p>
<p>&#8216;The Right Balance&#8217;</p>
<p>The government must &#8220;strike the right balance between providing financing and access to borrowers and, at the same time, making sure the loans originated are fair and sustainable for the borrowers,&#8221; Ryan said in an interview.</p>
<p>Freddie Mac is doing what it should to protect itself and taxpayers, and is being reasonable in its demands, said Brad German, a spokesman for the McLean, Virginia-based firm.</p>
<p>&#8220;We don&#8217;t want to pay for mortgages that should never have been sold to us,&#8221; German said in an interview. &#8220;When minor defects in a loan file are found, it does not necessarily trigger a repurchase; it triggers a request to the lender to remedy the defect, either by finding a missing document or taking similar corrective actions.&#8221; Andrew Wilson, a spokesman for Washington-based Fannie Mae, declined to comment.</p>
<p>&#8220;Mortgage originators are more closely adhering to underwriting guidelines resulting in fewer of the mortgage defects of prior years,&#8221; said Corinne Russell, spokeswoman for the Federal Housing Finance Agency, which regulates so-called government sponsored enterprises Fannie Mae and Freddie Mac. &#8220;This lowers default risk to the GSEs.&#8221;</p>
<p>&#8216;Substantial&#8217; Relief</p>
<p>President Barack Obama&#8217;s latest push to help more borrowers refinance into cheaper rates may hinge on the effectiveness of changes to Fannie Mae and Freddie Mac repurchase rights. FHFA acting Director Edward DeMarco told reporters yesterday that the companies would offer &#8220;substantial&#8221; relief from buyback demands without providing &#8220;blanket or absolute&#8221; protection as they expand the federal Home Affordable Refinance Program for borrowers with little or no equity in their houses.</p>
<p>While the average rate on a 30-year fixed loan was 4.11 percent in the week ended Oct. 20, the historically low costs don&#8217;t capture the &#8220;very, very harsh underwriting standards&#8221; that potential home buyers face, said Ron Peltier, CEO of HomeServices of America, the property brokerage owned by billionaire Warren Buffett&#8217;s Berkshire Hathaway Inc. The process is &#8220;the most embarrassing, difficult thing you can imagine,&#8221; Peltier said in an Oct. 13 interview at Bloomberg headquarters in New York.</p>
<p>&#8216;Gone too Far&#8217;</p>
<p>The average time between mortgage application and closing rose to about 52 days last year, three weeks longer than in 2008, according to J.D. Power and Associates surveys.</p>
<p>Pressure from the GSEs has &#8220;definitely stanched the flow of credit to the mortgage market, but we had clearly gone too far,&#8221; said Richard Eckert, an analyst in San Francisco at securities firm B. Riley &amp; Co. who wrote research on subprime lenders during the housing boom and then joined a hedge fund betting against property loans during the collapse. &#8220;We&#8217;ve got to return to some kind of happy balance.&#8221;</p>
<p>Bank of America Corp. has scaled back mortgage lending as CEO Brian T. Moynihan prepares for new capital requirements and grapples with demands that it compensate investors including Fannie Mae and Freddie for losses.</p>
<p>&#8216;Increasingly Inconsistent&#8217;</p>
<p>&#8220;Our repurchase experience with the GSEs continues to evolve and their repurchase requests and resolution processes has become increasingly inconsistent with our interpretation of our contractual obligations,&#8221; the Charlotte, North Carolina- based bank said in a slide presentation last week.</p>
<p>Terry Francisco, a spokesman for Bank of America, had no immediate comment. Wells Fargo &amp; Co., the largest U.S home lender, had no comment, according to Vickee Adams, a spokeswoman.</p>
<p>The prospect of reimbursement demands has hurt home sales, said Brian Chappelle, a partner at consulting firm Potomac Partners LLC, during a panel at the mortgage conference. While the FHA allows down payments as low as 3.5 percent from borrowers whose credit scores are at least 580, lenders are setting the bar higher, such as at 620, he said.</p>
<p>Lenders &#8220;feel like they&#8217;re being held accountable for things beyond their control,&#8221; he said. &#8220;The only thing the industry can do is tighten up on the front end.&#8221;</p>
<p>Vision Mortgage Capital President Regina Lowrie has her staff conduct extra quality-control reviews on all of its loans before closings, up from 10 percent before housing slumped. &#8220;That adds cost to the process,&#8221; hurting consumers who ultimately must pay for the work, she said at the conference.</p>
<p>The unit of Plymouth Meeting, Pennsylvania-based Continental Bank also started taking additional looks at consumers&#8217; credit files shortly before completing loans, based on Fannie Mae and Freddie Mac guidance, Lowrie said. It finds more situations like the potential borrower who took out a new car lease while waiting for the application to clear, &#8220;and now that loan&#8217;s going back to underwriting again,&#8221; she said.</p>
<p>To contact the reporter on this story: Jody Shenn in New York at jshenn@bloomberg.net</p>
<p>To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net</p>
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		<title>Optimistic signs for real estate</title>
		<link>http://www.susanrauth.com/2011/06/11/optimistic-signs-for-real-estate/</link>
		<comments>http://www.susanrauth.com/2011/06/11/optimistic-signs-for-real-estate/#comments</comments>
		<pubDate>Sat, 11 Jun 2011 17:58:25 +0000</pubDate>
		<dc:creator><![CDATA[Omahaadmin13]]></dc:creator>
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              Part of the optimism shared by those in real estate is the relative steadiness of the local economy and the area's low unemployment rate compared with the rest of the nation. “We don't see the boom and we don't see the bust,” said Valenti. “We always fall somewhere in between.”</a>
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				<content:encoded><![CDATA[<p>By <a href="mailto:cindy.gonzalez@owh.com">Cindy Gonzalez</a><br />
WORLD-HERALD STAFF WRITER</p>
<p><a title="Optimistic Signs for Real Estate" href="http://www.omaha.com/article/20110609/MONEY/706099924">Original Article &#8211;&gt;</a></p>
<p><img class="alignright" title="Pending Home Sales Rise More Than Expected" src="http://susanrauth.com/images/Blog/Erie.jpg" alt="" width="350" height="492" /></p>
<p>Julie and Kevin Grady spent a lot of years in the big house that hugs Champions golf course.</p>
<p>They built it in 1997, raised two kids and honed careers there, and only recently decided to downsize, knowing also that they spend winters in Arizona.</p>
<p>Once the couple mentally made that lifestyle switch, the rest of the story went much quicker.</p>
<p>Less than 24 hours after going on the market, the Gradys&#8217; four-bedroom home sold to a Des Moines family that once lived in the neighborhood and wanted to return to Omaha.</p>
<p>Although the housing market remains far short of its pre-recession heyday, the Grady case and other recent home sales have made local real estate agents optimistic that the recovery continues.</p>
<p>“We&#8217;re cautiously optimistic,” said Joe Valenti, president of CBSHome Real Estate. “It&#8217;s a lot better than it could be if Omaha was following national trends.”</p>
<p>New statistics from the Omaha Area Board of Realtors show that 943 homes went under contract last month — not quite the 1,000-to-1,200 range that Mike Riedmann, president of residential sales for NP Dodge, would like to see. But the level was fairly consistent with the previous two months.</p>
<p>The May tally does represent a huge 60 percent jump from May 2010, but last May&#8217;s number was artificially low because it was the first month after the expiration of the federal stimulus effort that sparked a homebuyer rush.</p>
<p>In May 2009, the number of signed contracts was reported to be 1,129; in 2008, 993.</p>
<p>Vince Leisey, president of both the Omaha Realtors board and Prudential Ambassador Real Estate, views the latest sales report as “good,” especially considering the showing in the second half of last year.</p>
<p>Historically, he said, March through June are peak home sales months. Leisey expects June to suffer “a pinch” with the all-out focus on the first College World Series at the new downtown stadium. But he sees this year&#8217;s trend as steady.</p>
<p>“We&#8217;re not going to have that roller coaster this year like we had last year,” said Leisey.</p>
<p>Riedmann suspects that eye-popping gas prices magnified insecurity of would-be homebuyers and dampened activity in early May. As gas prices fell back, he said, interest has picked up. He saw a bright spot in last weekend&#8217;s traffic at the NP Dodge 285-home super open house.</p>
<p>“Good activity in open houses usually means there is going to be good activity in the market,” he said. “That bodes well for us.”</p>
<p>Still, overall, it is not what might be expected given that home prices and interest rates are down. Riedmann said one cannot underestimate the shakiness of consumer confidence as the nation tries to rebound from a recession.</p>
<p>Part of the optimism shared by those in real estate is the relative steadiness of the local economy and the area&#8217;s low unemployment rate compared with the rest of the nation. “We don&#8217;t see the boom and we don&#8217;t see the bust,” said Valenti. “We always fall somewhere in between.”</p>
<p>A new report from CoreLogic, which analyzes real estate trends, shows both Nebraska and Iowa in better shape than the nation in terms of borrowers who are “underwater” — meaning that they owe more on their mortgages than their homes are worth.</p>
<p>Nebraska and Iowa, for the first quarter of this year, each had about 9 percent of their homes underwater. The national average, by comparison, had nearly 23 percent.</p>
<p>Such drowning, or negative equity, can occur because of a decline in value, an increase in mortgage debt or a combination of the two. Whatever the reason, said Mark Fleming, chief economist at CoreLogic, “negative equity for the foreseeable future will weigh on the housing market recovery by holding back sale and refinance activity.”</p>
<p>Teresa Elliott, the Prudential representative who sold the Grady house, said her business has stayed above any national fray in part by pricing competitively and beefing up marketing strategies.</p>
<p>To the Gradys, Elliott&#8217;s team suggested certain changes — including replacing flowery wallpaper and window coverings with a more neutral theme — to increase appeal.</p>
<p>When Laura Doll went to the open house, she was sold.</p>
<p>Doll had been scoping out the familiar subdivision for two months and actually had been inside the property before its official placement on the market. Her family missed Omaha, she said, and her daughters had been accepted in a nearby Catholic school that they had attended before. They&#8217;re all eager to pick up where they left off.</p>
<p>Meanwhile, the Gradys, whose two kids attend out-of-state universities, plan to be settled in their new Midtown Crossing condo in time to watch Jazz on the Green concerts from their balcony that looks toward downtown.</p>
<p>Once they made that mental leap from suburban to urban, Kevin said, it was full speed ahead.</p>
<p>“It&#8217;s time for that change to happen.”</p>
<p>Contact the writer:</p>
<p>402-444-1224, cindy.gonzalez@owh.com</p>
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		<title>Can you claim home buyer tax credit?</title>
		<link>http://www.susanrauth.com/2011/02/16/can-you-claim-home-buyer-tax-credit/</link>
		<comments>http://www.susanrauth.com/2011/02/16/can-you-claim-home-buyer-tax-credit/#comments</comments>
		<pubDate>Wed, 16 Feb 2011 21:50:17 +0000</pubDate>
		<dc:creator><![CDATA[Omahaadmin13]]></dc:creator>
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              If you bought a home last year, you may be eligible for a tax credit of up to $8,000 when you file your 2010 tax return. But before you start shopping for hardwood floors, make sure you qualify. And even if you're eligible, you'll need to take extra steps to prove that your claim is legitimate.</a>
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				<content:encoded><![CDATA[<p><img class="alignnone" title="Home buyer tax credit" src="http://www.susanrauth.com/images/Blog/Home2.jpg" alt="" width="550" height="400" /></p>
<p><a href="http://www.usatoday.com/money/perfi/taxes/2011-02-04-personalfinance04_ST_N.htm" target="_blank">Original Article &#8211;&gt;</a><br />
By <a title="Sandra Block" href="http://content.usatoday.com/topics/reporter/Sandra+Block" target="_blank">Sandra Block</a>, <em>USA Today</em></p>
<p>If you bought a home last year, you may be eligible for a tax credit of up to $8,000 when you file your 2010 tax return. But before you start shopping for hardwood floors, make sure you qualify. And even if you&#8217;re eligible, you&#8217;ll need to take extra steps to prove that your claim is legitimate.</p>
<p>Congress first enacted a home buyer&#8217;s tax credit in 2008 in an effort to revitalize the housing market. Since then, the credit has been revised and extended several times. Here are the factors that will determine your eligibility for the credit:</p>
<p>•<strong>When you signed the contract to buy your home.</strong>To claim the credit on your 2010 tax return, you must have signed a contract to purchase your primary residence before May 1, 2010.</p>
<p>•<strong>When you closed.</strong> Home buyers who closed as late as Sept. 30, 2010, qualify for the credit, as long as their original contract called for the purchase to be completed by June 30. Congress added the extension because many of last year&#8217;s home purchases involved short sales or homes in foreclosure, and banks have been slow to process those transactions, says John W. Roth, analyst for tax publisher CCH.</p>
<p>•<strong>Where you lived before you bought the home. </strong>For homes purchased Nov. 7, 2009, to April 30, 2010, there are two tax credits: a first-time home buyer credit and a repeat home buyer credit.</p>
<p>The first-time home buyer credit is worth 10% of the purchase price of the home, up to a maximum of $8,000. The law defines a first-time home buyer as someone who hasn&#8217;t owned a principal residence in the three years before the purchase.</p>
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<h4>FROM THE IRS: <a href="http://www.irs.gov/taxtopics/tc612.html" target="_blank">First-time homebuyer credit for purchases made in 2009 and 2010</a></h4>
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<h4>Q&amp;A: <a href="http://www.irs.gov/newsroom/article/0,,id=218698,00.html" target="_blank">Claiming the credit on your tax return</a></h4>
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<p>The repeat home buyer credit is worth up to 10% of the purchase price, up to a maximum of $6,500. The law defines a repeat buyer as someone who has owned and lived in the same home for at least five consecutive years of the eight years. If you&#8217;re married, both spouses must meet the residency test.</p>
<p>•<strong>How much you paid for the home.</strong> The first-time and repeat home buyer credits are limited to homes purchased for less than $800,000.</p>
<p>•<strong>Your income.</strong> The full credit is available to taxpayers with a modified adjusted gross income of up to $125,000, or $225,000 for joint filers. (Those limits apply to homes purchased after Nov. 6, 2009; there are lower cutoffs for homes purchased before that date.) A reduced credit is available for home buyers with MAGI of up to $145,000, or $245,000 for married homeowners.</p>
<p><strong>Payback time</strong></p>
<p>Now comes the bad news for taxpayers who claimed the home buyer&#8217;s credit in 2008. Starting this year, they&#8217;ll have to pay it back.</p>
<p>That&#8217;s because the original first-time home buyer&#8217;s tax &#8220;credit&#8221; was in fact an interest-free loan that had to be paid in equal installments over 15 years. The law gave home buyers who claimed the credit a two-year grace period, which means the first installment is due this year. H&amp;R Block estimates that more than 950,000 taxpayers claimed the credit in 2008.</p>
<p>The maximum 2008 &#8220;credit&#8221; was $7,500, so if you claimed the full amount, you&#8217;ll have to pay $500 when you file your 2010 tax return, Roth says. &#8220;A lot of people will end up owing a fair amount of taxes this year because of the additional $500 they&#8217;ll have to repay,&#8221; he says.</p>
<p>If you bought a house in 2008 then sold it, you could owe even more, because in that instance, you&#8217;re required to repay the entire amount of the credit all at once.</p>
<p>Tax credits claimed for homes purchased in 2009 and 2010 don&#8217;t have to be repaid, as long as the home remains your primary residence for three years. If you sell the home within 36 months after the purchase, you&#8217;ll have to repay the credit. The repayment can&#8217;t exceed the gain on the sale, so if you didn&#8217;t make any profit on the sale, you may not owe anything.</p>
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<h4>MORE FROM THE IRS: <a href="http://www.irs.gov/taxtopics/tc611.html" target="_blank">First-time homebuyer credit for purchases made in 2008</a></h4>
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<h4>UNDERSTANDING YOUR IRS NOTICE: <a href="http://www.irs.gov/individuals/article/0,,id=233589,00.html" target="_blank">Repaying the first-time homebuyer credit</a></h4>
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<p>However, your &#8220;basis&#8221; for purposes of calculating the loss or gain on the sale is the amount you paid for the home minus your tax credit, says Kathy Pickering, executive director of H&amp;R Block&#8217;s Tax Institute. For example, if you bought your house for $100,000 and claimed an $8,000 first-time home buyer&#8217;s credit, your basis is $92,000.</p>
<p><strong>Be prepared to wait</strong></p>
<p>The IRS is requiring taxpayers who claim the home buyer&#8217;s tax break to provide documents proving that they purchased a home within the required time frame. To meet that requirement, you must file your tax return by mail.</p>
<p>The IRS imposed the requirement to deter fraud. The Treasury Department&#8217;s inspector general reported last year that thousands of individuals, including nearly 1,300 prison inmates, had fraudulently claimed the tax credit.</p>
<p>Documents you may need to include:</p>
<p>•A copy of your settlement statement. For most home buyers, that&#8217;s the HUD-1 provided at closing. Sign the settlement statement, even if the document doesn&#8217;t have a line for your signature.</p>
<p>•For newly constructed homes, a dated copy of the certificate of occupancy that shows your name and the address of the home.</p>
<p>•For repeat buyers, copies of documents showing that you lived in your previous residence for five consecutive years during the past eight years. Acceptable documents include mortgage interest statements, property tax records or homeowners insurance statements. You don&#8217;t need to provide five years of the same documents, the IRS says. You can use a combination of documents to verify the years you were in the home.</p>
<p>Paper-filed returns take the IRS up to six weeks to process, vs. less than two weeks for e-filed returns. Returns that claim the credit may get extra scrutiny from the IRS, which could also delay your refund. &#8220;It&#8217;s worth it to get the credit,&#8221; Pickering says, &#8220;but people need to be patient.&#8221;</p>
<p><a href="http://www.usatoday.com/money/perfi/taxes/2011-02-04-personalfinance04_ST_N.htm" target="_blank">Original Article &#8211;&gt;</a></p>
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