New Legislation

New legislation, the Worker, Homeownership and Business Assistance Act of 2009, which was signed into law on Nov. 6, 2009, extends and expands the first-time homebuyer credit allowed by previous Acts. The new law:

• Extends deadlines for purchasing and closing on a home.
• Authorizes the credit for long-time homeowners buying a replacement principal residence.
• Raises the income limitations for homeowners claiming the credit.

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.

For the first time, long-time homeowners who buy a replacement principal residence may also claim a homebuyer credit of up to $6,500 (up to $3,250 for a married individual filing separately). They must have lived  in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased.

People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after Nov. 6, 2009. The credit phases out for individual taxpayers with modified adjusted gross income (MAGI) between $125,000 and $145,000 or between $225,000 and $245,000 for joint filers. The existing MAGI phase-outs of $75,000 to $95,000 or $150,000 to $170,000 for joint filers still apply to purchases on or before Nov. 6, 2009.

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.

The credit is claimed using Form 5405, which you file with your original or amended tax return.

Source. IRS.gov

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Access Realty
Kevin & Monica Ray
Office: 406-822-SOLD (7653)
Cell: 406-207-1185
Email: RayTeam@YourMT.com

Montana Real Estate Resources

This site contains information on all areas related to Montana Real Estate. Browse the articles below for information on investing, moving, buying, selling, and more!

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Recent Articles

• Missoula Real Estate Market Stats for December 2009, 59808
• Missoula Real Estate Market Stats for December 2009, 59804
• Missoula Real Estate Market Stats for December 2009, 59803
• Missoula Real Estate Market Stats for December 2009, 59802
• Missoula Real Estate Market Stats for December 2009, 59801
• Montana Board of Housing 2010 PROGRAM
• Missoula Montana Church & Places of Worship Directory
• October 2009 – Missoula Real Estate Market Report for 59801
• Video on Staging Your Home to Sell – Decluttering
• Western Montana’s Bitterroot Valley is Hit Hard By Foreclosures

Montana Board of Housing 2010 PROGRAM

*Reservations accepted on a “First Come, First Serve Basis”

*Interest rate is 5.125%

*Term is 30 year mortgage

*1% Origination Fee

*1% Discount Fee

*Eligible loans:  FHA, VA, and Rural Development

*Homebuyer Education is required for all loans unless the allowed exceptions are met

*Setaside programs subject to approval are currently at 5.50%

*Homebuyer Education required on all setaside loans

*INCOME LIMITS- Contact your lender

Missoula County – 2 or less in family $71,280

Missoula County – 3 or more in family $83,160

*LOAN LIMITS

Missoula County purchase price limit new or existing    $236,840

Mineral County purchase price limit new or existing      $236,840

Sanders County purchase price limit new or existing     $236,840

Ravalli County purchase price limit new or existing       $236,840

Missoula County is a targeted area

For information on qualifying for a MBOH loan, contact your local Montana lender. For a list of homes that may qualify, contact Kevin and Monica Ray of Access Realty at 406-207-1185 or 406-544-3098.

Do I have to sign a Buyer Broker Agreement if I’m going to work with a real estate agent?

The policies vary from company to company and from agent to agent regarding Buyer Broker Agreements as does the timing at which they are signed. Some agents require you to sign a Buyer Broker Agreement before they will show you a single house. Others will wait until you are ready to present an offer on a property.

Types of Buyer Broker Agreements

There are different types of Buyer Broker Agreements. First, you may have an Exclusive Agreement that says you will only work with that agent. Second, there are Non-Exclusive Agreements that give you the option to work with multiple agents.

You can also specify the type of property, location, and price range that the agreement will apply to.

There are both pros and cons to signing a Buyer Broker Agreement.

Pros: You know that the agent is working for you and representing your best interests in a transaction. It has also been lined out if there will be a fee due to them if you decide to purchase a home that’s For Sale By Owner or if you don’t purchase at all. Everything is clear and in writing.

Cons: If you sign a Buyer Broker Agreement with an agent and then realize that you do not want to work with that person, you may be committed to paying the agent a commission when you buy and may not be able to find other representation.

Whether you choose to sign a Buyer Broker Agreement initially or not is a personal decision. Business transactions are most successful when based on mutual trust and when all parties are working for a Win Win situation. If everyone is on the same page, then a written agreement is just a formality.

Real Estate Agents are professionals who work on commission and only get paid at the time of a sale. If your agent provides good value, information, and is honest and forthright, a Buyer Broker Agreement lets them know that you will be loyal to them in a transaction as well. This can go a long way in building a productive business relationship.

If you decide to sign you may consider having a clause that will allow you to cancel the agreement if you determine that you will be unable to work with that specific agent and that no fee will be due. It is also worth being specific about how/if a commission will be paid if you decide to purchase a For Sale By Owner (FSBO) property.

Agents in Montana are required to have a signed form in their file if they represent you in the offer to buy property. They are also required to explain agency to you. So when you get to the point of making an offer on a property, be prepared to sign the agreement as part of the standard Buy/Sell packet of paperwork.

In Montana, there are three basic types of agents in a transaction:

• Seller’s Agent or Listing Agent - This is a the agent who has the listing. They have a contract with the seller that outlines the terms of the listing and any commissions that will be paid upon sale of the property. The listing agent works for the seller. This is important to remember when you’re attending Open Houses.
• Buyer’s Agent - This person represents the buyer in a transaction and works on behalf of the buyer’s best interests. If the property is listed by an agent who participates in the local Multiple-Listing-Service or MLS, the seller’s agent will pay the buyer’s agent a commission based on what has been agreed to in the contract with the seller and advertised on the MLS.
• Dual Agent - This person tries to represent both the buyer and a seller in a transaction. While sometimes this works out well, it can be very challenging to fairly represent both sides at the same time in a negotiation.

So Why Should I Have a Buyer’s Agent?

1. They represent your best interests in a real estate transaction. This can result in both TIME and MONEY saved for you!
2. Since a Buyer’s Agent doesn’t represent any particular house, they are in a better position to act as your ADVISOR and less like a salesperson.
3. An experienced Buyer’s Agent knows the area and the market. They can help you identify potential homes and provide information on what a home is worth in the current marketplace.

Frequently Asked Questions for Buyers

Here are a few tips to make your decision making process a little bit easier:

Get Pre-Approved for You Loan so you know exactly what kind of budget you will have. Also, make sure that you will not have a problem getting your mortgage once construction is complete.

Work with a Realtor(R) that is experienced with new home construction. A Realtor(R) can help identify reputable local builders, building lots that meet your criteria, and can help you negotiate a New Home Construction Buy/Sell Contract.

Select at least three builders to interview - you can get recommendations from your lender, Realtor(R) and even from local suppliers. 

Questions to ask during your interview with the builder

•  
  • How long have you been in business?
  • What type of Warranty do you offer? For how long?
  • How much of the work is completed by your own employees versus subcontractors?
  • Who supervises the work at the job site?
  • Do you have any liens against your finished projects?
  • What sets you apart from other builders?
  • What is your bid process and how long will it take?
  • How quickly can you start the project and how long will it take?

Most importantly, get at least three references that you can contact from the builder on completed projects. Contact the references, here’s some questions to ask:

•  
  • How was the builder to work with?
  • Did they come in at, or under budget (excluding change orders)?
  • How did they keep the job site – was it relatively clean?
  • Are they happy with the final project?
  • If possible – go see the projects and look at them carefully – are they level and are the details completed -trim, etc.?
  • How was communication with the builder? Was he accessible?

Based on your interview, research and reference check, you will need to select a builder that you feel comfortable with and that you will trust to complete your project. 

If your project is large, such as a new home, you will likely need to choose a builder before your project is priced. Pricing a home can take a few weeks for the builder and will require a lot of your input – what type of finishes do you want, flooring type, heating system, fixtures, etc.

Communicate your budget and expectations with your builder up front. An experienced builder can help you get the most for your money if they have a clear understanding about what you want, and how much you can spend.

If you are considering building a home in Missoula Montana or surrounding communities, contact Kevin and Monica Ray of Access Realty – Your New Construction Specialists.

For my birthday, Kevin took me to a day long class on Wells and Private Septic Systems. While this doesn’t sound thrilling, I actually learned a lot of very helpful information. Because we work with a lot of rural properties in Western Montana, we see a lot of well and septic systems – some good, some not so good.

If You’re Considering a Private Well, here’s what you should look for:

1.) Get a copy of the Well Log – The Well Log should list when the well was dug, the company that did the work, the gallons per minute (GPM), static water levels, the well depth and geologic formations. If you can’t find a water log, contact the Department of Environmental Quality or DNRC to see if they can assist you in finding it, or create the log for you.

If the Gallons Per Minute is low, you may have problems with the well running dry. Homes will low gpm may need a regulator installed. It can also be difficult to resell your home if it is a low yielding well. If there is a question, have the well tested.

2.) If there is a Septic System Also – how far away from the well is it? It should have a 100 foot protection zone from the septic tank and the drain field. You should request a copy of the Septic System map from the seller, if you have questions, contact your County Sanitarian or Health Department to make sure the distance is safe.

3.) Inspect the Well Caps- Is it cracked, corroded, or unprofessional? If so, you will want to make sure to test the water and have the case replaced. The ideal well cover is a sealed sanitary casing (See picture).

4.) Look for Settling on the Ground Around the Well - Over time, the ground around the well will settle, this can allow dirt and debris to get into the water so have it checked.

5.) Run the Water and Listen to the Pump:

• The run time should be less than a minute long
• The period between pump cycles should be greater than three minutes

6.) Check the Pressure Tank - if you knock on the tank, it should sound full on the bottom and hollow on the top, if it is full at the top, it could be waterlogged. If the pressure tank isn’t working effectively, in can burn out your pump.

7.) Where is the Well Located? Check to see if there is livestock close by or other hazards that could get into the well water. This is a common reason for well contamination.

8.) Was the Well Installed by a Professional and Licensed Well Driller? If you have a copy of the well log, you should have the name of the company that drilled the well. Check with your state to verify their licensure. In boom times, more and more non-licensed well drilling companies pop up.

9.) Does the Homeowner Use a Water Softener? If so, check to see if there is a sediment filter to the softener. Also, a water softener can cause problems with a septic system because they slow absorption by the soil, leading to early failure of a septic system.

10.) Have the Water Tested: Have the water professionally tested for:

• Coliform (annually)
• Nitrate (annually)
• Nitrite
• PH
• Chloride
• Iron
• Arsenic
• Sulfate
• Hardness
• Alkalinity
• Manganese
• Check with the Water Testing Company to see if they recommend other tests for your area.

These are some basic tips on what to look for but we recommend a Professional Well Inspection prior to buying a property.

Are You Looking at Buying Bare Land? Here are Some Tips for What to Look for When Shopping for Land

Copyright 2009 – Kevin and Monica Ray Access Realty

Here’s a video that has some great information for potential homebuyers.

 1.) Sit down with a qualified lender

2.) Honestly evaluate your Wants versus Needs in a home

3.) Pick the right Realtor(R) – One that looks after your best interest

4.) Do your homework

5.) Manage your expectations

Read about Being a VIP Buyer and how we can help you make the Home Buying Process Easier, More Convenient, and potentially Save You Money!

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