Portland Real Estate | Portland Oregon Homes For Sale

Current News

Autumn in Oregon

Posted By - Ernie Coufal - 10/12/2011

Oregon comes alive in the autumn, when the state’s natural landscape bursts into beautiful colors of red, gold and orange, and exciting festivals take place, celebrating everything from the arts to jazz music to the harvest.

Here are just a few of the reasons why fall is one of the best times to visit The Beaver State:

The Civil War

Civil wars usually lead to the death of thousands and the destruction of property. Oregon’s "Civil War" is no different, except the deaths are metaphorical and the destruction is to the combined psyche of one of Oregon’s two largest universities--the University of Oregon Ducks and the Oregon State Beavers. This war does not take place on a battlefield; instead, it takes place on a football field at the end of November. But you don’t have to wait until the season’s last game to enjoy Oregon or Oregon State football. The season begins in early September with each team playing six or seven home games per year. Get your tickets early, or they’ll be gone.

Silver Falls State Park

Silver Falls State Park, about 20 miles east of Salem, has over 25 miles of hiking trails. The most famous of these is the Ten Falls Trail, which, as the name implies, leads to 10 different water falls. Although four of the falls are located within a half mile of a parking area, hiking the entire, (mostly) paved trail is worth the effort. The falls range from 27 to 177 feet, four of which cascade in front of an amphitheater-type rock formation, allowing visitors to walk behind them.

Fall Festivals

Despite its northern location, Oregon’s proximity to the ocean prevents it from getting too cold in the fall, which enables the good folks of the Beaver State to celebrate with fairs and festivals.

West Linn Arts Festival - The Portland metro area provides artwork, music, entertainment and food in the middle of September at the West Linn Arts Festival.
The Depoe Bay Indian Style Salmon Bake - The folks in Depoe Bay are pretty proud of their ability to bake salmon. That’s bad news for salmon and good news for you. On the third Saturday in September, the town hosts the Depoe Bay Indian Salmon Bake.
Annual Medford Jazz Jubilee - You can probably figure out what the Annual Medford Jazz Jubilee is by its name alone. This event, which is held annually during the first week in October, takes place in Medford in Southern Oregon and features three days-worth of jazz music.
Annual Hood River Valley Harvest Fest - The beauty of the Columbia River Gorge makes an autumn visit worthwhile. Throw in a Harvest Fest, and you’ve got yourself two reasons to drive down the gorge.
Fazio Farms Corn Maze in the City - Pony rides, a corn maze, face painting, food booths, a bouncy slide, and pumpkin painting make this annual Halloween event in the heart of Portland an excellent holiday tradition for children of all ages.

This is just a brief list of fall festivals in Oregon and a brief list of all there is to do in the Beaver State during the fall.

10 IRS Tax Tips for Home Sellers
Posted By - Ernie Coufal - 08/22/2011	3 comments
From time to time the IRS releases tips designed to help people with their taxes. Some of these are quite useful. Last week the agency released "Ten Tax Tips for Individuals Selling Their Home," (IRS Summertime Tax Tip 2011-15). These tips can be found on the IRS website at http://www.irs.gov/newsroom/content/0,,id=104608,00.html. Here are the IRS's top 10 tax tips for home sellers: 1. In general, you are eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale.? 2. If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).? 3. You are not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home.? 4. If you can exclude all of the gain, you do not need to report the sale on your tax return.? 5. If you have a gain that cannot be excluded, it is taxable. You must report it on Form 1040, Schedule D, Capital Gains and Losses.? 6. You cannot deduct a loss from the sale of your main home.? 7. Worksheets are included in Publication 523, Selling Your Home, to help you figure the adjusted basis of the home you sold, the gain (or loss) on the sale, and the gain that you can exclude.? 8. If you have more than one home, you can exclude a gain only from the sale of your main home. You must pay tax on the gain from selling any other home. If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time.? 9. If you received the first-time homebuyer credit and within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full credit is due with the income tax return for the year the home ceased to be your principal residence, using Form 5405, First-Time Homebuyer Credit and Repayment of the Credit. The full amount of the credit is reflected as additional tax on that year's tax return.? 10. When you move, be sure to update your address with the IRS and the U.S. Postal Service to ensure you receive refunds or correspondence from the IRS. Use Form 8822, Change of Address, to notify the IRS of your address change. These tips can be found on the IRS website at http://www.irs.gov/newsroom/content/0,,id=104608,00.html.

5 Questions to Ask Yourself Before Buying a Home
Posted - 08/18/2011
In most parts of the country, the housing market is good (or great!) for buyers right now - interest rates are bizarrely low, lots of inventory means lots to choose from, and the cost of renting has increased in a lot of markets. But just because the market’s good doesn’t mean it’s the right time for everyone to buy. The decision whether to buy a home is a very personal one; you need to carefully examine your own situation to determine whether it’s right for you. So, what are the questions you need to answer in deciding whether you’re ready to buy? Here are some of the big ones: 1. Do I have enough money for a down payment? And how much, exactly, is “enough?” Today’s minimum down payment requirements range from 3.5 percent on an FHA loan to 10 or even 20 percent for conventional loans. That means coming up with anywhere from $7,000 to $40,000 on a typical $200,000 house. While there are still programs that can give you a down payment assist (see last week’s post, 5 Insider Secrets for Coming Up With Cash for Down Payment), much of the heavy lifting here will need to come from you - in the form of saving up your hard earned cash. And keep in mind there are also closing costs you’ll probably have to pay in cash, which can run as high as 3-4% of your total purchase price. Talk with a real estate pro and a mortgage broker in your areas to start wrapping your head around how much “cash to close” (i.e., down payment + closing costs) will run, approximately, on a local property that would meet your needs. Can your savings cover this? If not, where will you get the money - what’s your plan for coming up with it? Putting down as much as you can a) makes you more attractive to lenders, so you might qualify you for better loan terms and b) gives you additional purchasing power, either decreasing your monthly mortgage payment or increasing your purchase price limit for a home. 2. Can I handle the not-so-glamorous aspects of homeownership? If you can’t even fathom the prospect of having a home maintenance crisis without having a landlord to call to fix it, you might want to reconsider homeownership - or at the very least, buy a lower maintenance condo or townhome in great condition, and make sure you get a home warranty! As a home owner, after all, you essentially are your own landlord. Pipe bursts in the middle of the night? Guess who’ll be up fixing it or calling (and paying) the plumber? (Hint: you.) There are also some less-than-glamorous bills you’ll have to deal with in your new role as a homeowner that you never laid eyes on as a renter: property taxes and hazard insurance, to name two. When you go from renter to owner, you also need to account for the cost of appliances and maintaining the property’s roof, windows, and landscaping, among other things. 3. How long do I intend to stay in the house? If you think you might move out of the area next year, then you really shouldn’t be thinking about buying a house (unless of course, you want to play landlord and rent it out after you leave - a prospect which requires its own risk/rewards analysis). For your home purchase to pencil out as a good deal, financially, you’ll shouldn’t buy unless you’re comfortable staying in the house at least 5-7 years - even longer, if you’re buying a home in a foreclosure hot spot or an area with a sluggish job market.. This gives you some time to build up equity and make up for the costs of buying, selling and moving. 4. Are my job and finances stable? Maybe you just went through a major career change and are in the process of working your way back up from the top. Or maybe you work in a field that has been hit really hard by layoffs and cutbacks. The worst case scenario is to find yourself in a spot with mortgage payment you have no way to make, when you could have avoided that by seeing the writing on the wall. If you feel like there’s a real chance you could lose your job or income tomorrow, you may want to hold off on buying a house - that has the added bonus of giving you the geographic freedom to move, if needed, to get a new job. Is there really such a thing as 100 percent job security in today’s economy? Probably not. But the best practice is to be confident that your finances could handle a temporary loss of income and still make your mortgage payments, before you buy. One way to do this is to have enough money in the bank to cover 4-6 months’ worth of living expenses, calculating them to include your mortgage payment - before you deem yourself ready to buy. That way, even if you lose your job with no warning at all, you’ll at least have a reasonable window of time to find a new one without digging yourself into a hole - or worse, losing your home altogether. 5. What are my real reasons for buying? Buying a home is a long-term commitment that will have massive impacts on your lifestyle, your family and your finances. In other words, don’t do it unless you’re really sure you want to and are ready for the lifestyle change - don’t let someone else talk you into it. Worthy reasons renters with homeowning readiness give for their decision to buy include some or all of the following: You want to build equity instead of paying a landlord. Fact is, if you get a fixed rate mortgage and make the payments for the full term of the loan, you'll eventually pay it off. That's not possible when you're renting. You want a place to call your own, where you can paint a wall purple, add a pottery spinning studio or build your dogs an obstacle course (oops - that's my reason for homeownership!), because it's your prerogative. You want the tax advantages of homeownership. You want a stable place you and your family can live for as long as you'd like. Ask yourself these questions, and be honest with your answers. If you really want to buy, but your answers to these questions today don’t weigh in that direction, it doesn’t mean you’ll never own a home. It’s usually just a matter of strategically timing your purchase out a year or two when your savings, your career and your lifestyle are in alignment with the implications of ownership - consider working closely with a real estate broker and a mortgage professional to get an action plan in place and start working that plan.

4 Signals It Is Time to Buy (vs Rent) a Home!
Posted By - Ernie Coufal - 04/28/2011	12 comments
To rent or to buy: what used to be a given - that you would buy a home as soon as you could afford to - has become an agonizing conundrum for many a would-be homebuyer, in the face of the housing market's big bust and super-slow recovery. Low prices seem to create a wide-open window of opportunity, but they also create the concern that prices will keep falling after closing. And that Catch-22 has hundreds of thousands of buyers-to-be stuck on the fence. Fortunately, there are handful of life, mortgage and local market signals which indicate that the time might be right to hop - scratch that - leap off the fence and into homeownership: Mortgage rates are going up. Home prices have been low for the last several years, and in fact are currently looking like they're heading back down to the same levels they were at the depths of the real estate recession. During this same time frame, interest rates have also been low - this one-two punch has created record-high affordability for the last four years running, causing buyers to believe that this window of opportunity won't be closing anytime soon. While prices don't look like they'll be skyrocketing anytime soon, interest rates are another story. Rates have been on a rollercoaster over the past few months, and with inflation and Fed rates set to spike later this year, today's low interest rates might be as good as they're going to get for a long time to come. And I mean a very long time - in the next few years, governmental intervention in the mortgage markets is likely to wind down, and that means higher mortgage interest rates are not only inevitable, they'll probably be here for a long, long time. Mortgage rates on the rise are one signal that now might be the peak of home affordability, and the peak of the opportunity to buy. Rents are going up. Rental rates in many areas are also on the rise - in fact, the foreclosure crisis has acted created additional demand on many markets' rental housing inventory in several different ways. First, former homeowners who lost homes to foreclosure now need to rent; as well, buyers in foreclosure hot spots have been hesitant to buy, many electing to stay renters far beyond when they would have otherwise. On top of all that, super-tight lending guidelines have stopped even some who would like to buy homes from doing so. As a result, rental homes are in high demand - and rents are rising. Rising rents at a time when the prices of homes for sale are low and, in some places, falling? One more signal that now might just be the time to buy. (Of course, where foreclosures are high, the chances of continued depreciation are, too - to offset this risk, have a long-term plan, to minimize the possibility that you'll owe more than your home is worth when you need to sell. Read on for more on how to plan for the long term and minimize your homebuying risk.) Your income and career are stable for the foreseeable future. The smartest homebuyers look to their lives, not just the market, for signals about when the time is right to buy. Homebuying is a long, long-term endeavor these days. The goal is to be able to commit to staying in the same place, geographically-speaking, for 7 to 10 years before you buy (more in a foreclosure-riddled market, less in an area that has been more recession-resistant). Most lenders will require that you've been at your job - or in the same general field of work - for at least two years before you buy. But that's the bare minimum - beyond that, you don't want to be barely beginning a career in which you think you may need to move sooner than that, nor do you want to buy when you're advanced in your career, but in an industry which is dying or downsizing the workforce in your region (unless you have a strong Plan B). When you get to the spot in your career where you can realistically project a stable income 7 to 10 years out, life might be giving you a green light to move forward on your homebuying dreams. You can reasonably predict the home you'll need in the years to come. Since successful homeownership requires that you be ready to be in the place for a good number of years, best practice is not just to buy a home with the space and number of rooms you need right now - rather, you should aim to buy the home you'll need 5, 7 or even 10 years down the road (to the best of your ability to predict, of course). You might be a newlywed with no kids now, but you plan to have them in a few years. Or maybe you're a newly minted empty nester right now, but can project that you'll want to retire - and might not want to climb two flights of stairs to get to and from your bedroom - 10 years down the road. Before you buy, you should be in a position to buy the home that meets your future needs - not just your current ones; and that requires that you have a reasonable idea of your life vision and plan for the future. If you're able to predict - and afford, at today's prices - a home with the space, amenity and geographic location you'll need 7 to 10 years from now, you might be in a good phase of life to get off the rent vs. buy fence. With that said. . . buying a home is a massive decision and includes multiple, long-term financial and lifestyle obligations, so if one or more of these signals are present for you, that doesn't mean you have the green light to run out and buy a home tomorrow - rather, it's a good sign you should begin down that path, if you're so inclined. You'll still need to do the work to make sure your personal finances and holistic life picture are also in alignment before you buy, as well of the work it takes to ensure that your real estate and mortgage decisions are sustainable and smart, over the long-term. It's not overkill to check in with a mortgage pro, a tax pro, a *local* real estate broker or agent and a financial planner to make sure all your ducks - not just one - are in a row before you make your move.

Homeownership Can Pay Off At Tax Time
Posted By - Ernie Coufal - 03/24/2011	3 comments
The tip Dave Ramsay always says you should never buy a home or have a mortgage just for the tax breaks. On the flip side, if you do have a home and a mortgage, be sure you take advantage of the tax savings they bring! As the clock ticks toward the deadline to file your income taxes, don't forget to check out these deductions and credits specifically for homeowners. Mortgage Interest - It's estimated that 60% of homeowners miss out on their deductions for mortgage interest each year, resulting in billions of dollars in overpaid taxes. The IRS allows you to deduct 100% of the mortgage interest you paid in 2010, but you'll have to itemize your return to claim it. Real Estate Taxes -You can also deduct up to $1,000 in real estate taxes, even if you don't itemize your return! Mortgage Debt Forgiveness - It's been a tough few years for many homeowners, with foreclosures, short sales and loan modifications becoming more and more common. Normally, any mortgage debt that is "forgiven" under these circumstances has been taxed as Cancellation of Debt Income, or CODI. But for 2010 through 2012, the IRS will not tax CODI on most primary residences. Home Improvements - This is the last year to claim your $1,500 tax credit for certain energy-saving home improvements such as high-efficiency heating and air conditioning systems, water heaters and skylights. You'll get a break on up to 30% of the costs of these improvements made in 2009 or 2010. Don't Forget... There are more tax breaks for homeowners, such as deductions for your home office, origination fees or discount points, and mortgage insurance. Be sure to ask your tax preparer if there are any additional deductions you qualify for

First Time Home Buyers Prepare for Best Buyer Market
Posted By - Ernie Coufal - 03/18/2011	5 comments
RISMEDIA, March 18, 2011-While affordable housing prices, ample inventories, and historically low interest rates signal 'buyer's market' for investors or move-up buyers in many U.S. markets, inexperienced first-time buyers may not know if the time is right to make a move into real estate. "It's not about timing the market. It's about time in the market," says Steve Berkowitz, chief executive officer at Move, Inc., a leader in online real estate. "Once you know how long you expect to own a home, look at the historical value performance of properties in the neighborhood. Be confident about your own job security, down payment resources and tolerance for upkeep, as well as the lifestyle you want today and in the near term. While homeownership may not be for everyone, it is the right choice for hundreds of thousands of people. Today's housing market, especially for first-time buyers, makes it almost impossible not to think about the possibilities." To help first-time buyers know if they're ready to look for the home of their dreams as we head into this year's home-buying season, the experts at Move have created a 'reality checklist' designed to help them decide if the time is right. Get your financial house in order Before you decide to buy a home, it's essential to make sure your credit is in good shape and repair any damage previously done. Know your credit score: thirty-five percent (35%) of successful buyers recently reported they didn't know their credit score when they went house shopping, according to a national survey fielded for MortgageMatch.com. Having enough money set aside for a down payment is a key component to making sure you are ready to purchase a home. Also, it's important to not put all of your money in the down payment as other fees or unexpected expenses often arise after closing. Don't fall in love with a house you can't buy Find out how much you can afford: establishing your purchase power upfront, including how much money will be required for a down payment and closing costs, is a must for first-time buyers. Look for special loans available from FHA and government sponsored loans for first-time home buyers that reduce the amount of money required to get into a home. Learn the lingo Since first-time buyers are new to the market and will finance a significant portion of their purchase, it's important to get familiar with the processes and terminology associated with home-buying. Here are a few key terms from MortgageMatch.com to add to your vocabulary: Bait rate: Misleading mortgages with low rate promises and no contingencies generally for those with extraordinary credit. Rates are based on: credit, debt-to-income and loan-to-value ratios, the size and type of loan, property location and the day you lock your rate, etc. The loan isn't locked until the application is accepted. By then, it may be too late to find a better rate from another lender. Basis point: A term used in the mortgage industry which simply means 1/100th of 1%. Closing costs: The fees required to process and close your loan. They're a cash obligation running from 3-5% of the purchase price. Motivated sellers might pay a portion of these costs. FHA: Federal Housing Administration, the Federal Government Agency that oversees the U.S. Housing market. FHA Loans are loans insured by the Dept. of Housing and Urban Development. FRM and ARM: A Fixed-Rate Mortgage Loan (FRM) is a loan where your interest rate stays the same for the life of the loan. ARMs are Adjustable-Rate Mortgages with variable interest rates that fluctuate based on an agreed-upon index. GFE: The Good Faith Estimate (GFE) is a document explaining all costs involved in getting a loan. TIL: The Federal Truth-in-Lending Form is a document that spells out the costs and fees of the loan. Lis pendens: An official notice that there is a pending lawsuit over real estate. Per Diem interest: Interest you pay per day, from the day you close to the last day of the month. Underwriting/underwriting fees: Underwriting is a process the lender performs to qualify a borrower for a loan and the fee is what you pay the lender at closing to cover evaluating the risk involved with loaning you money. Warranty deed: A legal document guaranteeing the seller has a right to sell a property, which is very important if you are considering a distressed or discounted property. Mortgage Knowledge While national rates on 30-year-fixed-rates mortgages have risen slightly this year, they are still at historic lows not seen since 1980, according to Freddie Mac. "Buyers who prepare themselves financially before they start looking for a home will have a better chance of succeeding," says Sue Stewart, senior vice president for Move, Inc. "If you want to land the best mortgage that fits your needs, start early, educate yourself on your financial situation, get your documentation together and find a lender you trust." Find a REALTOR® and go shopping For those ready to buy, REALTOR.com® has the tools and tips to help you find a REALTOR® and, ultimately, the right home. Finding a licensed real estate professional in your area will make the process smoother and easier to understand. Once you find an agent, share your realistic budget and what you're looking for in a home. Stay in constant contact with your agent and look for homes whenever you have a spare moment. First-time home buyer resources For more tips designed to help the first-time buyer navigate the home buying process, the experts at Move have provided an abundance of helpful information that's just one click away: -Reality checklist - Are you sure you're ready to buy? Here's how to know. -How-to Guide: Buying Your First Home - Everything you need to know about buying a home -Get Prequalified Now - Get prequalified for a mortgage before you begin shopping -Realtor.com Blogs- Connect with REALTORS® to help you navigate the market -MortgageMatch.com News - Answers questions about finances and mortgages -Move.com Home Finance - Equips first-time buyers with tools, guides, advice, and more If now isn't the right time, prepare for your future purchase If now isn't the right time to buy a home, make a plan with a target date for when you expect to be ready. Improving your credit, paying down debt, stabilizing your work history and calculating exactly how much you can afford, are the best ways to prepare for your future home purchase. It's also important to refrain from making any new large purchases or applying for new credit.

FHA Short Refinance... Homeowners Can Avoid Foreclosure!
Posted By - Ernie Coufal - 03/10/2011	4 comments
The newest effort by the Obama administration to address the threat of foreclosures from borrowers who are underwater, or who owe more than their houses are worth is the FHA Short Refnance program. If it works well, the program could deal with the risks of strategic default, from homeowners who could afford to make their payments but choose not to because they're so far underwater. But the story noted how many of the knots that have snarled previous modification efforts-including dealing with second liens and contracts that govern mortgage securitizations-could also stymie the latest initiative. Here are some answers to the most frequently asked questions: Q: Who can participate? Generally speaking, the program is designed for borrowers who are current on their loans and owe more than their properties are worth. Borrowers are refinancing into FHA-backed loans and must be able to meet all traditional underwriting guidelines (including a minimum credit score of 500 and an income that can support the current loan payments). Loans already backed by the FHA can't participate. Fannie and Freddie aren't currently participating in the program, though it's possible that they could decide to do so in the future. Fannie and Freddie currently have programs to allow borrowers to refinance loans for borrowers that are underwater, up to 125% of the property's value. (This site allows you to find out if your loan is owned by Fannie or Freddie.) Q: How does the program work? If a borrower owes more than the property is currently worth, the bank or investor that owns the loan-and the company that services the loan (i.e., the company that collects monthly mortgage payments)-must agree to reduce the loan balance by at least 10% so that the new loan is no more than 97.75% of the home's current value. If they're willing to take the loss, the borrower must agree to refinance into an FHA-backed loan at today's interest rate. Q: What costs could borrowers face? Borrowers will have to pay transaction fees associated with refinancing. Because they're getting an FHA-backed loan, they'll also be paying mortgage insurance. Q: Will participating in this program affect my credit score? Yes. Lenders are forgiving some principal, which will be reported to credit bureaus. Q: Can I use this program on an investment property or second home? No. Borrowers must occupy the property. The FHA doesn't finance second homes or investment properties. Q: What if I have a second mortgage? The combined mortgage debt on the first and second mortgages must be no greater than 115% of the property's current value. The second-lien holder must agree to the refinance, and if the combined loan to value exceeds 115%, either the first- or second-lien holder (or both) will need to reduce the loan balance further. The government will make some incentive payments for second-lien holders that reduce principal. Q: If my loan was modified by my bank, under HAMP or under a different program, can I participate in this program? Maybe. If the modification was made under the Home Affordable Modification Program, or HAMP, the borrower is eligible one month after the HAMP modification is made permanent. If the modification wasn't made through HAMP, the borrower must have made three monthly payments on time, and the modified mortgage must be current. If the loan is in a temporary or trial period, it isn't eligible. Q: What should I do if I think I'm eligible for the program? Mortgage servicers-the companies that handle monthly payment collections-will ultimately decide whether borrowers can participate. Borrowers should talk to their mortgage servicers to see if they are eligible. Because the program is voluntary, the investor that owns the loan will need to agree to the write-down. If there's a second mortgage involved, then that creditor will also have to agree to participate. If the loan was bundled into a pool and sold to investors as mortgage-backed securities, then the servicer will have to decide whether to participate on behalf of the investors. It's also important to remember that because the program is new, servicers may be unfamiliar with it at first. While some servicers have hired lots of staff to deal with a crush of modifications and foreclosures, it could still be a while before banks are fully ready to refinance loans through the program. If your bank says they're not participating or that they don't know about this program, you might refer them to some materials that have been issued to banks to help them become familiar with the program. Those are available here and here. Q: How is this program different from HAMP? The so-called "short refinance" initiative differs from other modification programs because it's available only to borrowers who are current on their loans; so far, most modifications have extended help primarily to borrowers who are delinquent. From WSJ article By Nick Timiraos

6 Things That Turn Home Buyers Off (and Seller Solutions)!
Posted By - Ernie Coufal - 02/24/2011
Here are 6 big-time homebuyer turn-offs that make buyers cringe at the thought of your home, and action steps you can take to prevent your home from being an offender: 1. Stalker-ish sellers. I know you think you're being helpful, walking the buyer through your home and pointing out the wagon-wheel light fixture you made with your own two hands, the custom mural of a stingray you paid top dollar to have painted across your living room wall and the way the sounds of happy schoolchildren running across the front yard of your corner lot to get to the school in the next block lifts your spirits. However, the buyers might be trying really hard to ignore, minimize or figure out how to undo the very features of your home you hold dear. They also may want or need to have personal space and conversations with their mate or their agent while they're viewing your home - you being there, especially walking right alongside them while they're in your home, prevents them from being comfortable about doing this, or discussing all the things they would change if the home were theirs. In my experience, the more nitpicky a buyer gets about a house and the more detailed their list of things they would change, the more serious they are about considering making an offer on this place. What's a Seller to do? Back off. Let your home be shown vacant, or leave the house when people come to see it. If you need to be there, at least walk outside or go sit at the coffee shop down the way while prospective buyers view your home. If the buyers have questions, their people will contact your people. 2. Shabby, dirty, crowded and/or smelly houses. You already know this one. Yet, buyers constantly marvel. The buyers who come to see your home are making the decision whether to choose your home for the biggest purchase they've ever made during the worst economic conditions most of them have ever experienced. Your job is to get your home noticed - favorably - above the sea of other homes on the market, many of which are priced very, very low. What's a Seller to do? Other than listing your home at a competitive price, the only tool within your control for differentiating your home from all the foreclosures and short sales is to show it in tip-top shape. Pre-pack your place up, getting rid of as many of your personal effects as possible. Do not show it without it being completely cleaned up: no laundry or dishes piled up, countertops freshly washed, smelly dogs (I have a couple who smell on occasion - no judgment - but don't show your house with pet odors) or litter boxes cleaned and/or out of the house. 3. Irrational seller expectations (i.e., overpricing). Buying a house on today's market is hard work! On top of all the research and analysis about the market and situating their own lives to be sure they'll be able to afford the place for 5, 7, 10 years - or longer, buyers have to work overtime to separate the real estate wheat from the chaff, get educated about short sales and foreclosures and often put in many, many offers before they get even a single one accepted. The last thing they want to add to their task lists is trying to argue a seller out of unreasonable expectations or pricing. And, in fact, there are so many other homes on the market, buyers don't have to do this. When they see a home whose seller is clearly clueless about their home's value and has priced it sky-high, most often they won't bother even looking at it. If they love it, they'll wait for it to sit on the market for awhile, hoping the market will "educate you" into desperation, priming the pump for a later, lowball offer. What's a Seller to do? Get real. Get out there and look at the other properties that are for sale in your area and price range. Get multiple agents' take on what your home should be listed at, and don't take it personally if their recommendation is low. If your home has much less curb appeal or space or is much less upgraded than the house across the way, don't list it at the same price and expect it to sell. If you owe more than your home is realistically worth, you may need to reexamine whether you really want or need to sell, or consider a short sale, if you simply have to sell. Don't be tempted into testing your market with an obviously too-high price, unless you're prepared to have your home lag on the market and get lowball offers. 4. Feeling misled. Here's the deal. You will never trick someone into buying your home. If the listing pics are photo-edited within an inch of their lives, or your home is described as an "approved" short sale when, in fact, the bank approved another offer, now withdrawn, but will require a new offer to go through any sort of approval process (even a truncated one), buyers will learn this information at some point. If your neighborhood is described as funky and vibrant, as code for the fact that your house is under the train tracks and you live in between a wrecking yard and a biker bar, prospects will figure this out. If the detailed information about your home, neighborhood or even transactional position (e.g., short sale status, seller financing, etc.) is misrepresented, the sheer misrepresentation will turn otherwise interested buyers off. If you authorize your agent to "verbally approve" the buyer's offer, don't go back the next day demanding an extra $5,000. In cases where the buyer feels misled, whether or not that was your intention, running through the buyer's mind is this question: If they can't trust you to be honest about this, how can they trust you to be honest about everything else? What's a Seller to do? Buyers rely on sellers to be upfront and honest - so be both. If your home has features or aspects that are often perceived negatively, your home's listing probably shouldn't lead with them (like the ad I recently saw with the intro line: "this place is a mess!"), but neither should you go out of your way to slant or skew or spin the facts which will be obvious to anyone who visits your home. Make sure you know what the listing of your home reads like, before it's published to the web, and that a prospective buyer will not feel misled by it. 5. New, ugly home improvements. Many a buyer has walked into a house that has clearly been remodeled and upgraded in anticipation of the sale, only to have their heart sink with the further realization that the brand-spanking-new kitchen features a countertop made, not of Carerra marble, but brand-new, pink tiles with a kitty cat in the middle of each one (I saw this once, people - no joke). Or the pristine, just-installed floors feature carpet in a creamy shade of blue - the buyer's least favorite color. New home improvements that run totally counter to a buyer's aesthetics are a big turn-off, because in today's era of Conspicuous Frugality, buyers just can't cotton to ripping out expensive, brand new, perfectly functioning things just on the basis of style - especially since they'll feel like they paid for these things in the price of the home. What's a Seller to do? Check in with a local broker or agent before you make a big investment in a pre-sale remodel. They can give you a reality check about the likely return on your investment, and help you prioritize about which projects to do (or not). Instead of spending $40,000 on a new, less-than-attractive kitchen, they might encourage you to update appliances, have the cabinets painted and spend a few grand on your curb appeal. Many times, they will also help you do the work of selecting neutral finishes that will work for the largest possible range of buyer tastes. 6. CRAZY listing photos (or no photos at all). We've all seen listing photos that have dumpsters parked in front of the house, piles of laundry all over the "hardwood" floors touted in the listing description, and once, even the family dog doing his or her business in the lovely green front yard. Listing pictures that have put your home in anything but its best, accurate light are a very quick way to ensure that you turn off a huge number of buyers from even coming to see your house! The only bigger buyer turn-off than these bizarre listing pics are listings that have no photos at all; most buyers on today's market see a listing with no pictures and click right on past it, without giving the place a second glance

President Obama to Visit Hillsboro
Posted - 02/16/2011	3 comments
President Obama's visit to Intel in Hillsboro will be streamed live Friday morning. The visit will highlight education and innovation, a shared priority for the company and administration. The president will speak briefly on the subject. Read the complete article at: http://www.oregonlive.com/business/index.ssf/2011/02/president_obamas_visit_to_inte.html

New Home Construction in Portland
Posted By - Ernie Coufal - 12/20/2010
Local builders say that a slow recovery and modest home building levels are more sustainable. I hope that important lessons have been learned and we don't ever repeat recent mistakes. More information: http://ow.ly/3s4CE

Bloombeg says Portland Real Estate Mkt is Best Large Metro
Posted By - Ernie Coufal - 12/10/2010
In light of current conditions, it's a big deal when Bloomberg rates Portland as best perfoming Large Metro in real estate http://ow.ly/3nkpV

Is Walla Walla, WA America's New Wine Capital?
Posted By - Ernie Coufal - 12/02/2010
MSNBC says Walla Walla, Washington may be America's New Wine Capital! Read the complete article at: http://ow.ly/3iW1o

Tax Benefits for Younger Homeowners
Posted By - Ernie Coufal - 11/23/2010
According to Realty Times, younger homeowners may benefit the most from homeownership tax incentives. For more info: http://ow.ly/3etnP

More Jobs for Portland
Posted By - Ernie Coufal - 11/11/2010
Vestas Wind Energy is adding 1,700 jobs in the United States. The company keeps its North American headquarters in Portland, where in August it announced it would move to a new 172,000-square-foot Pearl District building in 2012. Vestas has said it will add 100 jobs in Portland in the next year. More info http://www.sustainablebusinessoregon.com/articles/2010/11/vestas-ready-to-hire-in-us.html?ana=sbo

Construction in Downtown Portland to Increase!
Posted By - Ernie Coufal - 11/04/2010
Here is another indicator that the Portland real estate market has turned the corner. According to the Oregonian, "Portland's downtown real estate scene is about to get a lot more interesting, as multiple developers are suddenly pushing new projects to deal with a shortage -- yes, a shortage -- of large blocks of downtown office space." You can read more about this topic in yesterday's Oregonlive: http://ow.ly/34yqx. Combine this news with last week's announcement that Intel is investing $8 billion in its Hillsboro plant (8,000 construction jobs) and the announcements two weeks ago about the Sellwood Bridge and South Light Rail projects (14,000 jobs), it's time to get excited about the Portland Real Estate Market. Now is a GREAT time to buy a home

Intel Confirms Hillsboro Plant Construction
Posted By - Ernie Coufal - 10/19/2010
Intel confirms plan to spend billions on Hillsboro Oregon plant resulting in 8,000 construction and 1000 permanent jobs http://ow.ly/2W7KP

Current Real Estate Market Trends
Posted By - Ernie Coufal - 10/18/2010
Current market trend information for Portland/Beaverton Oregon http://ow.ly/2VsFP

Agreement Reached on Major Portland Area Projects
Posted - 10/07/2010
City of Portland & Multnomah County Agreement moves Sellwood Bridge & South Portland Light Rail Forward. In a 45 minute meeting on Wednesday Portland Mayor, Sam Adams, and Multnomah County Chairman, Jeff Cogan, reached agreement on two projects that had been stalled due to disagreements over funding. Just after 5:30 p.m. Wednesday, about a dozen officials representing Portland, Multnomah County, Clackamas County, TriMet and Oregon's congressional delegation packed into a conference room in Adams' third-floor City Hall office to hash out details of the compromise. The agreement must now be approved by both governing bodies. The resulting projects total approximately $1.75 billion and will result in 14,000 area jobs beginning next year. For more information read the Oregonian article: http://www.oregonlive.com/portland/index.ssf/2010/10/city_hall_sellwood_bridge_agre.html

Pending Sales Increase More Than Projected
Posted By - Ernie Coufal - 10/04/2010
According to Bloomberg Business Week, pending sales of existing homes increased more than projected last month. This is an indication that the recovery in the housing market continues to gain momentum. If you want to buy and have not jumped on the bandwagon yet, you might want to give your realtor a call. Rates are great right now and you can still get a great deal on a home. For more information about the increase in pending sales check out: http://www.businessweek.com/news/2010-10-04/pending-u-s-sales-of-existing-homes-increase-4-3-.html

19,040 Students in Oregon Schools are Homeless

Posted By - Ernie Coufal - 09/23/2010

Oregon Department of Education Releases Homeless Student Count: Highest Numbers on Record

SALEM - State Schools Superintendent Susan Castillo announced today that Oregon's homeless student count is the highest ever recorded. During the 2009-10 school year, 19,040 homeless students attended Oregon public schools. This is a 5.5 percentage increase from last year. The percentage of homeless students in Oregon has increased 134 percent since the state began counting seven years ago.

"Our homeless students face enormous challenges," said State Superintendent Susan Castillo. "It is imperative our schools help address their basic needs so they may attend school consistently. Since education is the key to a better life, our schools and communities must work together to help ensure academic success for our homeless students."

DISTRICTS WITH HIGHEST COUNTS OF HOMELESS STUDENTS 2009-10

SCHOOL DISTRICT	HOMELESS STUDENTS	TOTAL ENROLLMENT	% OF HOMELESS TO TOTAL ENROLLMENT
Beaverton	1,580	37,950	4.2
Medford	1,139	12,062	9.4
Portland	1,043	45,678	2.3
Salem-Keizer	822	40,206	2.0
Bend-LaPine	799	15,819	5.1
Reynolds	754	11,077	6.8
Eugene	601	17,497	3.4
David Douglas	517	10,783	4.8
Springfield	482	10,874	4.4
Klamath Falls City	439	3,408	12.9

This year's data shows changes in district counts which may indicate movement by homeless families away from urban core areas, to suburban districts where transitional housing and social services are becoming more available. Click here to access a data file with district and county homeless student counts.

Each school district in the U.S. is required to have a homeless liaison to coordinate outreach and services for homeless students in their area, as well as conduct the annual counts. Liaisons make sure students are enrolled in school, have the supplies they need and provide referrals to the community services for services such as shelter, health care and counseling. In addition, districts can pay for school transportation of homeless children who have moved during the school year so they can maintain learning continuity by remaining in the same school.

School district programs like the Maslow Project, now in Jackson and Coos Counties, provide basic survival assistance to families and youth, and then help students achieve control of their own learning and educational progress so they can stay on track toward obtaining an Oregon High School Diploma.

Under the federal McKinney-Vento Act Program for Education of Homeless Students, also called "Title X," homeless students are defined as those students who lack a fixed, regular and adequate nighttime residence. A homeless family could live in an emergency shelter or share housing with others due to loss of housing or economic hardship, stay at motels, or live in cars, parks, public places, tents, trailers, or other similar settings. For more information and a definition of Title X go to: http://www.ode.state.or.us/search/page/?id=1973.

To reach a school district's homeless liaison contact the State Homeless Education Coordinator at (503) 947-5781, (dona.bolt@state.or.us).

Click here to access a data file with district and county homeless student counts
Click here to access additional findings from the 2009-10 homeless student count.

Contacts:

Susanne Smith, ODE Communications Director, Susanne.smith@state.or.us, (503) 947-5637

Dona Bolt, ODE Homeless Education Specialist, dona.bolt@state.or.us, (503) 947-5781

When will real estate prices rise? Ask the feds
Posted By - Ernie Coufal - 09/22/2010
Perspective: A new theory for housing bubbles By Sean O'Toole, Wednesday, September 22, 2010. Inman News Home-price trend line from 1890-2006. Source: "Irrational Exuberance." Almost everyone has seen the chronological home prices chart that accompanied the second edition of Robert Shiller's book, "Irrational Exuberance." What everyone notices at first glance is, of course, the steep increase in prices during the latest housing boom when compared to previous cycles. But when I first saw it something else caught my eye. What I noticed immediately was that if you bought a house in 1955 and sold it in 1999, the house actually lost value. Seems ridiculous. Those of us in California immediately think this couldn't apply to us, given the price increases we've seen over the years. But it can, and it does. The thing about this chart is that it has been adjusted for inflation. The reality is that most of what we think of as home-price appreciation is really inflation. In other words, it's not the value of the house going up, but the value of the dollar going down. The second thing I noticed about this chart was the dramatic price increase in the 1940s, and the home-price bubbles in the '20s, '30s, '70s and '80s. While much research has been done on these price increases and bubbles, I began to suspect one simple cause that in hindsight is blatantly obvious ... and has nothing to do with irrational behavior on the part of buyers, as some have concluded. In the early 1920s, mortgage debt tripled due to lax lending standards. In the '30s, you had the creation of the Federal Home Loan Banks, the FHA and Fannie Mae. The GI Bill was passed in the late '40s, introducing government-subsidized, 100 percent financing for returning servicemen. Freddie Mac was created in the early '70s and Ginnie Mae issued the first mortgage-backed securities -- both were hailed at the time as making homeownership more affordable. In the 1980s, adjustable-rate mortgages were introduced at the same time interest rates began to drop. In the late '90s and the beginning of this decade, we had the Taxpayer Relief Act of 1997, the Gramm-Leach-Bliley Act, the Commodity Futures Modernization Act (these last two worked together to shift mortgage default risk off the banks and ultimately on to taxpayers, allowing lenders to make ever more aggressive and exotic loans), and finally the lowering of interest rates by the Federal Reserve. That's right. Every single significant increase in home prices in the last 100 years was immediately preceded by government intervention or stimulus. The evidence is irrefutable. Every time the government works to make housing more affordable, prices rise. This actually makes perfect sense. Buyers always have, and always will, buy as much home as their banker tells them they can afford. If you make home financing more affordable, you increase the amount buyers can pay. But instead of getting more home for their money, prices simply rise to reflect the change. Worse yet, with the exception of the GI Bill in the 1940s, each subsequent rise in home prices after government efforts was short-lived and immediately followed by a steep decline. With my new thesis in hand, I attempted to apply it to the most recent housing-price bubble. The chart below shows median home prices in California from 2000-09, together with median incomes, and the home price one could afford based on the most aggressive, but popular, loan product available at the time. Amazing. Prices doubled, yet the payment one could get at those ever-increasing prices remained relatively flat. Furthermore, payments didn't drop much once the market crashed. Hopefully at this point you are seeing a bigger picture. Home-price appreciation is largely just inflation, and housing bubbles are a recurring failure of our government to learn from its past mistakes. Rather than looking at the big picture, government officials and our representatives continue to jeopardize our future with the latest quick fix to a problem they don't seem to understand. Whether through tax benefits, subsidized financing or regulatory easing, expect prices to rise with the onset of our government's next grand experiment in making homes "affordable." Just remember that you now know what comes next. Sean O'Toole is founder and CEO of foreclosure data company ForeclosureRadar.com.

10 Reasons to Buy a Home

Posted By - Ernie Coufal - 09/16/2010

According to the September, 16, 2010 Wall Street Journal, here are 10 reasons why it's good to buy a home.

1. You can get a good deal, especially if you play hardball. This is a buyer's market. Most of the other buyers have now vanished, as the tax credits on purchases have just expired. We're four to five years into the biggest housing bust in modern history. And prices have come down a long way- about 30% from their peak, according to Standard & Poor's Case-Shiller Index, which tracks home prices in 20 big cities. Yes, it's mixed. New York is only down 20%. Arizona has halved. Will prices fall further? Sure, they could. You'll never catch the bottom. It doesn't really matter so much in the long haul. Where is fair value? Fund manager Jeremy Grantham at GMO, who predicted the bust with remarkable accuracy, said two years ago that home prices needed to fall another 17% to reach fair value in relation to household incomes. Case-Shiller since then: Down 18%...

2. Mortgages are cheap. You can get a 30-year loan for around 4.3%. What's not to like? These are the lowest rates on record. As recently as two years ago they were about 6.3%. That drop slashes your monthly repayment by a fifth. If inflation picks up, you won't see these mortgage rates again in your lifetime. And if we get deflation, and rates fall further, you can refi.

3. You'll save on taxes. You can deduct the mortgage interest from your income taxes. You can deduct your real estate taxes. And you'll get a tax break on capital gains-if any-when you sell. Sure, you'll need to do your math. You'll only get the income tax break if you itemize your deductions, and many people may be better off taking the standard deduction instead. The breaks are more valuable the more you earn, and the bigger your mortgage. But many people will find that these tax breaks mean owning costs them less, often a lot less, than renting.

4. It'll be yours. You can have the kitchen and bathrooms you want. You can move the walls, build an extension-zoning permitted-or paint everything bright orange. Few landlords are so indulgent; for renters, these types of changes are often impossible. You'll feel better about your own place if you own it than if you rent. Many years ago, when I was working for a political campaign in England, I toured a working-class northern town. Mrs. Thatcher had just begun selling off public housing to the tenants. "You can tell the ones that have been bought," said my local guide. "They've painted the front door. It's the first thing people do when they buy." It was a small sign that said something big.

5. You'll get a better home. In many parts of the country it can be really hard to find a good rental. All the best places are sold as condos. Money talks. Once again, this is a case by case issue: In Miami right now there are so many vacant luxury condos that owners will rent them out for a fraction of the cost of owning. But few places are so favored. Generally speaking, if you want the best home in the best neighborhood, you're better off buying.

6. It offers some inflation protection. No, it's not perfect. But studies by Professor Karl "Chip" Case (of Case-Shiller), and others, suggest that over the long-term housing has tended to beat inflation by a couple of percentage points a year. That's valuable inflation insurance, especially if you're young and raising a family and thinking about the next 30 or 40 years. In the recent past, inflation-protected government bonds, or TIPS, offered an easier form of inflation insurance. But yields there have plummeted of late. That also makes homeownership look a little better by contrast.

7. Its risk capital. No, your home isn't the stock market and you shouldn't view it as the way to get rich. But if the economy does surprise us all and start booming, sooner or later real estate prices will head up again, too. One lesson from the last few years is that stocks are incredibly hard for most normal people to own in large quantities-for practical as well as psychological reasons. Equity in a home is another way of linking part of your portfolio to the long-term growth of the economy-if it happens-and still managing to sleep at night.

8. Its forced savings. If you can rent an apartment for $2,000 month instead of buying one for $2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of people won't. Most, I dare say. Once again, you have to do your math, but the part of your mortgage payment that goes to principal repayment isn't a cost. You're just paying yourself by building equity. As a forced monthly saving, it's a good discipline.

9. There is a lot to choose from. There is a glut of homes in most of the country. The National Association of Realtors puts the current inventory at around 4 million homes. That's below last year's peak, but well above typical levels, and enough for about a year's worth of sales. More keeping coming onto the market, too, as the banks slowly unload their inventory of unsold properties. That means great choice, as well as great prices.

10. Sooner or later, the market will clear. Demand and supply will meet. The population is forecast to grow by more than 100 million people over the next 40 years. That means maybe 40 million new households looking for homes. Meanwhile, this housing glut will work itself out. Many of the homes will be bought. But many more will simply be destroyed-either deliberately, or by inaction. This is already happening. Even two years ago, when I toured the housing slump in western Florida, I saw bankrupt condo developments that were fast becoming derelict. And, finally, a lot of the "glut" simply won't matter: It's concentrated in a few areas, like Florida and Nevada. Unless you live there, the glut won't have any long-term impact on housing supply in your town.

For more information on this subject, view the WSJ video interview with Brent Arends: "Reasons to Buy A Home Now," http://online.wsj.com/video/news-hub-top-reasons-to-buy-a-home-now/3C3C3A7E-3384-4FE9-982D-59146D4EEF17.html

Portland Real Estate Prices Stable
Posted By - Ernie Coufal - 09/01/2010
According to the New York Times, home prices in the Portland Oregon area have been stable over the past year. Portland price trends usually lag behind most other major markets, so the price increases in other major cities are a good indicator of what is on the horizion for the Portland area. For additional information or to see how other cities are doing click on this link: http://www.nytimes.com/interactive/2009/04/29/business/2009-wide-housing-graphic.html?ref=standard_poors_caseshiller_home_price_index

Portland's Business Climate
Posted By - Ernie Coufal - 08/27/2010
Portland is the 19th-best metro area in the country for business and careers, according to Forbes.com. Forbes ranked Portland favorably for projected job and economic growth and educational attainment of residents. Read the full story here.

OAR is in homeowner's court.
Posted By - Ernie Coufal - 08/20/2010
The Oregon Association of Realtors is mobilizing residents across the state in support of Initiative Petition 5 to constitutionally protect your real estate property from a sales tax. A real estate transfer tax is a sales tax on your property. It is a form of double taxation that lowers homeowner equity; negatively impacts the process of buying and selling a home; and unfairly targets property owners and lower income residents alike. A transfer tax, if enacted, would be on the sales price of your home, regardless of whether you have equity or not and would be in addition to any capital gain tax you might pay. To get more information and to become involved go to the Protect Oregon Homes website: http://www.protectoregonhomes.com/

Homebuyer Tax Credit Update
Posted By - Ernie Coufal - 07/08/2010
Legislation enacted in July 2010 extended the closing deadline from June 30 to Sept. 30, 2010, for eligible homebuyers. Legislative changes in November 2009 expanded and extended the credit and also added documentation requirements for claiming the credit. Due to increased compliance checks by the IRS, failure to submit documentation will slow down the issuance of any applicable refund. For Qualifying Purchases in 2010 For qualifying purchases in 2010, you have the option of claiming the credit on either your 2009 or 2010 return. Deadlines You must meet the required deadlines to be eligible to claim the credit. For other information on eligibility requirements, see our questions and answers. You must have bought - or entered into a binding contract to buy - a principal residence on or before April 30, 2010. If you entered into a binding contract by April 30, 2010, you must close (go to settlement) on the home on or before Sept. 30, 2010 (recent legislation extended the June 30 deadline previously in effect). Filing Requirements 2009 Tax Return Because of the documentation requirements for claiming the credit, taxpayers who claim the credit on their 2009 tax return must file a paper - not electronic - return and attach Form 5405, First-Time Homebuyer Credit and Repayment of the Credit (see the instructions for help with the form), and a properly executed copy of a settlement statement used to complete the purchase. Purchasers of conventional homes should include a copy of Form HUD-1, Settlement Statement, or other settlement statement, showing all parties' names, property address, sales price and date of purchase. Purchasers of mobile homes who are unable to get a settlement statement should include a copy of the executed retail sales contract showing all parties' names, property address, purchase price and date of purchase. Purchasers of newly constructed homes where a settlement statement is not available should include a copy of the certificate of occupancy showing the owner's name, property address and date of the certificate. Note Regarding Signatures: While the Form 5405 instructions indicate that a properly executed settlement statement should show the signatures of all parties, the IRS recognizes that the elements of the settlement document, often a Form HUD-1, may vary from jurisdiction to jurisdiction and may not reflect the signatures of the buyer and seller. The settlement statement that must be attached to the return is considered to be properly executed if it is complete and valid according to local law. In locations where signatures are not required the IRS encourages the buyer to sign the settlement statement prior to attaching it to the tax return even in cases where the settlement form does not include a signature line. Long-Time Residents: The November 2009 legislation extends the credit to long-time residents of the same main home if they purchase a new main home. To qualify, eligible taxpayers must show that they lived in their old homes for a five-consecutive-year period during the eight-year period ending on the purchase date of the new home. For long-time residents claiming the credit, the IRS recommends attaching, in addition to the documents described above, any of the following documentation of the five-consecutive-year period: Form 1098, Mortgage Interest Statement, or substitute mortgage interest statements, Property tax records or Homeowner's insurance records. 2008 Tax Return It is still possible to claim the homebuyer credit for 2009 home purchases on 2008 tax returns. Homebuyers may use the December 2009 revision of the Form 5405 along with Form 1040X to amend their 2008 tax return. Homebuyer Credit Expanded and Extended The Worker, Homeownership and Business Assistance Act of 2009, signed into law on Nov. 6, 2009, extends and expands the first-time homebuyer credit allowed by previous Acts. Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return. The new law also: Authorizes the credit for long-time homeowners buying a new principal residence. Raises the income limitations for homeowners claiming the credit. News release 2009-108 has the details, as do two new IRS videos in English and Spanish. Members of the military, Foreign Service and intelligence community serving outside the U.S. should also be aware of new benefits in the law that apply particularly to them. Following is general information for first-time homebuyers who settled on a new home on or before Nov. 6, 2009. For 2008 Home Purchases The Housing and Economic Recovery Act of 2008 established a tax credit for first-time homebuyers that can be worth up to $7,500. For homes purchased in 2008, the credit is similar to a no-interest loan and must be repaid in 15 equal, annual installments beginning with the 2010 income tax year. For 2009 Home Purchases The American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made in 2009 before Dec. 1. However, the new Worker, Homeownership and Business Assistance Act of 2009 has extended the deadline. Now, taxpayers who have a binding contract to purchase a home before May 1, 2010, are eligible for the credit. Buyers must close on the home before July 1, 2010. [Added Nov. 12, 2009] For home purchased in 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer's main residence within a three-year period following the purchase. First-time homebuyers who purchased a home in 2009 can claim the credit on either a 2008 tax return, due April 15, 2009, or a 2009 tax return, due April 15, 2010. The credit may not be claimed before the closing date. News release 2009-27 has more information on these options. General Information Homebuyers who purchased a home in 2008, 2009 or 2010 may be able to take advantage of the first-time homebuyer credit. The credit: Applies only to homes used as a taxpayer's principal residence. Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar. Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.