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2011-07-30T18:00:00.000-04:00

Oakland Beach Fireworks tonight at Dusk Saturday July 30th

2011-06-30T11:19:00.001-04:00

At the Seawall saturday at Dusk at Oakland Beach, will be this years fireworks display.

St Ritas Festival!

New Rules for First-Time Home Buyers

2011-04-01T21:39:00.000-04:00

New Rules for First-Time Home Buyers This article from Smartmoney is a must read for those of you wanting to buy your first home. Save your money because larger down payments are going to be required.

MARS, and Hardest hit in Rhode Island programs you need to be aware of.

2011-03-03T12:08:00.000-05:00

This is a quick post for those of you out there floundering in all the big foreclosure and short sale mess.
First, this website will let you know the new RULES regarding everyone involved in Short Sales, the Realtors, Attorneys, etc and what they can and can not do. You need to be aware that not all providers know what they are doing. http://business.ftc.gov/documents/bus76-mortgage-assistance-relief-services-rule

Second, if you live in Rhode Island and have not managed to get your mortgage loan modified, and feel you have a legitimate reason for being behind on payments, be sure to use a HUD approved counselor. Here is the page for Rhode Islands' hardest hit. Names, numbers, faqs....all are here. Don't wait until it's too late.
http://www.hhfri.org/HHFRI_Default.aspx?id=10737418257&ekmensel=c580fa7b_10737418238_10737418239_btnlink

HUD HOME new on Market! Only $85,000!!!

2011-02-05T19:33:00.000-05:00

HUD Home # 451-068996

Needs work

Great opportunity to own in Warwick, RI!

This home has a lot of potential. A large attic can be expanded to be another bedroom.

This home is FHA insured and qualifies for 203K Rehab loan.

Home is sold as is, and is available to owner occupants up to 2/12/2011

For further details see www.hudhomestore.com

To see a tour of this home, click here

Karen Hurst is the Neighborhood Listing Broker (NLB) for Hud Homes

Seasons Greetings from Stonehurst Realty

2010-12-22T15:41:00.000-05:00

~Wishing all my Family, Friends, Clients and neighbors a Wonderful Holiday Season~

See you in January. It's definitely time to buy your new home before the mortgage rates get any higher! And if you are thinking of selling, there are buyers out there.

Foreclosure halts across the nation

2010-10-05T11:59:00.001-04:00

If you are reading all the news about banks halting foreclosures across the nation due to what they call "robo-signing", you may be wondering how this affects Rhode Island foreclosures. Rhode Island is a non-judicial foreclosure state. This means that these problems will NOT affect Rhode Island foreclosures. The 23 states that are affected are Judicial states.

UPDATED 10/08/2010

All 50 states are now being affected by BOFA and some others.
This should "not" affect short sales.

Oakland Beach Fireworks Warwick RI

2010-07-02T20:58:00.000-04:00

Saturday Night at the Seawall at Dusk!!

Get there early for a good spot, and stop at Iggy's or the Carousel for some great food

Happy Independence Day Warwick

Investors!! Lowest priced MULTI FAMILY in West Warwick!!!

2010-06-07T12:05:00.000-04:00

Brand new price! This is, as of right now, the lowest priced multifamily home in all of West Warwick, Coventry and Warwick!! You cannot go wrong. This must be a Cash or 203K rehab loan due to work needed. First apartment is two beds and both apartments have a rear backyard with plenty of parking and a deck. Don't be fooled by the front of the house, take a look from the rear. This would be a great rental property after you fix it up! Offered at the amazing price of $85,000!!! Must have proof of funds with offer. Property is AS IS and bank owned. Email Karenhurst at rihome.net for a showing.

Does length of unemployment indicate the real estate sectors health?

2010-06-04T11:15:00.000-04:00

I have always thought that the job market had a direct relationship to the Real Estate market. Below is an article that backs up my opinion. Rhode Island is once again near the top!!! (and as usual, not in a good way)

We need jobs to encourage this economy and not minimum wage jobs but good paying jobs!

The banks are now looking at potential home buyers with so much scrutiny, that it is making it nearly impossible to get a mortgage. There are a large percentage of Rhode Islanders' that are either going through, or have just gone through a short sale or a foreclosure! These people will not be able to buy at least for 3 years!

The few that can afford to actually make a mortgage payment and still continue to exist need to know that they will be getting periodic raises and have some kind of security regarding their place in the job market.in Rhode Island

I am just a Realtor in Rhode Island. I do not know the answers on what to do about the job market. I do know that most of the industry in Rhode Island has disappeared. We are now a hospitality state, which would be great if the beaches remained open during the summer, at least.

Here is the article
Does length of unemployment indicate the real estate sector’s health?

Meanwhile, I am here to help people find homes. Rhode Island has the potential to be one of the nicest states around!

Photo by Karen Hurst of former Rocky Point

Memorial Day

2010-05-28T10:14:00.000-04:00

I do not think that the phrase "Happy Memorial Day" is appropriate. This is the day we honor the soldiers who fought and died for our freedom. It is not a happy day. It is a sad, yet proud day.

My dad fought in World War II. He still has horrible memories and he lost his brother during the war in the Fiji islands. Yes my uncle received a Purple Heart for his bravery. Of course, I never got to meet him.

So to my uncle Robert Cole and my dad George Cole, and all the soldiers whether dead or alive, fighting now or years ago, thankyou for fighting for my freedom!

Peace to all on Memorial Day!

OPEN HOUSE - COLONIAL - WARWICK RI - $200,000!!

2010-05-14T08:13:00.000-04:00

Step back in time...Well maintained four bed colonial, perfect for large family. Enjoy the private backyard, or long summer nights on the enclosed porch. Beautiful original woodwork, moldings, pocket doors, and fireplace. Open Sunday 5/16 from noon till 2pm. 49 Barton Ave., Warwick, RI. Call for details: Sue Breslin, Stonehurst Realty 401-480-4137

Freddie Urges 12-Month Forbearance in Flood Areas

2010-04-23T12:04:00.000-04:00

This is on an individual basis. You can find the article here.

HUD Redefines "Foreclosed" to Include 60-Day Delinquencies

2010-04-22T07:32:00.000-04:00

HUD Redefines "Foreclosed" to Include 60-Day Delinquencies

HUD has announced that it's changing how it defines foreclosed to include properties in default and abandoned with lingering code violations. Effective immediately, HUD is classifying any property that is at least 60 days behind on the mortgage or the property owner is 90 days or more delinquent on tax payments as a "foreclosed" home.

In addition, HUD is expanding the definition of an "abandoned" property to include homes where no mortgage or tax payments have been made by the property owner for at least 90 days or a code enforcement inspection has determined that the property is not habitable and the owner has taken no corrective actions within 90 days of notification of the deficiencies.

HUD officials say the new definitions will help communities acquire, rehabilitate, and re-sell foreclosed and abandoned properties more quickly under the Neighborhood Stabilization Program (NSP) and help prevent further decline in hard-hit neighborhoods.

Also, the FHA has a moratorium in RI for three months on foreclosures due to the flooding.

Source DS News

Great Opportunity and Open House!! Withdrawn from Market

2010-03-08T09:45:00.001-05:00

Just in time for the $8000 tax credit!

There will be an open house at 71 Lowell Street, West Warwick RI on Sunday March 14th from 1pm to 3pm.

This house is an incredible opportunity at a newly reduced price of $151900!

Yes it needs some work, but the basics are all there.
It needs painting, a few new doors inside and general updating. Nothing major. It boasts vinyl siding, newer windows and roof.

This is your chance to get a nice ranch on a corner lot in a quiet neighborhood for a very reasonable price!

email me with any questions karenhurst @ rihome.net Realtors see mls # 959459 See you on Sunday!!

Multi family West Warwick RI $109,950 Bank Owned Needs Work

2010-02-25T15:15:00.000-05:00

Important if you are planning on buying a home. FHA new guidelines

2010-01-20T16:46:00.000-05:00

The FHA has announced policy changes that will affect you, the buyer. These changes are not expected to take effect until the spring or early summer.

Some of the highlights
1) Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending. The first steps will include raising the upfront MIP to 2.25% and secondary steps will involve shifting some of the increase to the annual MIP. An official mortgagee letter on this particular guideline is scheduled to be released tomorrow.

This is for buyers without enough down payment. You will now be required to pay more upfront (however, I believe you may still be able to wrap it into your new mortgage(

2) Update the combination of FICO scores and down payments for new borrowers. New borrowers with less than a 580 FICO score will be required to put down at least 10%.

This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.

3) Reduce allowable seller concessions from 6% to 3%. (for instance a seller may concede to pay for closing costs where before you could ask for up to 6% of the price, now you will only be able to ask for 3%)

This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.

4.) Increase enforcement on FHA lenders.

FHA is the Federal Housing Administration

Here is a link to the press release if you would like to read it yourself.

Bottom line...buy your new home before the April 30th cutoff for the tax credit and try to get it all done before these changes take place!

Fannie Mae First Look program and how it will affect you

2009-12-05T10:11:00.001-05:00

Fannie Mae is changing its former Homepath program. The new program, dubbed, "First Look" appears as if it will be very beneficial to First time and owner occupant buyers. There is going to be a 15 day period where only owner occupants will have a chance to get in on the ground floor.

This is actually "great news" for first time buyers and owner occupant buyers. This program is somewhat similar to the HUD program which gives owner occupants a 10 day running start.

In my experience, many owner occupants have been "outbid" or even underbid by investors with Cash. The listing Banks preferred to take the cash instead of waiting out the the possibilites of the owner occupant getting a mortgage.

With this new Fannie Mae First Look program coming up in 2010, if you are going to occupy the home yourself and even if you need a mortgage to do so, you will now have the first shot!

Here is the link to the Media announcement from Fannie Mae to learn more about this program.

Keep tuned to this Rhode Island Real Estate blog to find out more, as it happens!

2009-11-30T09:52:00.002-05:00

To all our Agents, Clients, soon to be clients, Friends and Family.

We wish you a peaceful and prosperous Holiday Season!

Rhode Island is in serious trouble. Should you buy now?

2009-11-12T09:47:00.000-05:00

Rhode Island Real Estate is in a state of flux right now. Yes, we had a flurry going for awhile with the tax credit for first time buyers. Amazingly homes were going so fast during the last couple of months, that it almost seemed as if prices would start going up. And they did, but very minutely.

Now, according to CNN News Rhode Island again is in the top ten. It seems we are always in the top ten of something! This time, it's our financial problems. I clearly remember the reason our governor ran for this position. He ran a business and knew how to manage money!! You can go here to see the CNN article

Here is the chart for "states in fiscal peril"

So, what does this mean for the housing market here in Rhode Island? Well one could say that yes, it is still a good time to buy. We now have an extension on the tax credit and an additional incentive for people who may have wanted to list their homes and make a move, but were afraid to because of the volatile market. Now if you wanted to list you would have a better chance of a buyer actually considering your home and when you moved, you would also be able to collect a few thousand (above and beyond). This is nothing to sneeze at and will be ending April, 2010.

However, who is to say that homes will not continue to decline? We are all hearing those rumors about the foreclosures stuck in the "pipeline". In my business, I do a lot of traveling throughout Rhode Island and I see many, many unoccupied homes. Are they future foreclosures? And why are they not on the market now? What is holding up the banks in these instances?

Also, anyone who has had the ~~misfortune~~ opportunity to be on either side of a short sale, already knows how futile they can be. Yes, a buyer can get a really good bargain. (Better than a foreclosure because the plumbing is usually still in the house). However, that buyer needs to excersise extreme patience because it can be months and months before they even hear back from the bank. Why?

I would venture to say that if you now want to list your home, it would be a pretty good time to do so.

I am a Realtor. I write about Rhode Island. Rhode Island has some beautiful coastline and picturesque country. I live in Rhode Island and grew up here. But, we are in financial trouble. This is a good time for someone from out of state to come in and snap up a waterfront or bayside home. Our beaches are now sporting some great home deals! These homes were once coveted and now are on the market. Rhode Island's troubles are someone elses' gains, as is the case with just about everything.

Here's hoping Rhode Island gets back on its feet and shows its stuff. We have a lot of great places here. All we need is jobs!

TAX CREDIT MAY BE EXTENDED!!!!! President to sign Friday

2009-10-29T11:06:00.002-04:00

Its looking pretty good that the tax credit will be extended until April 2010. Just waiting on the Senate and House votes...this one will also include a tax credit to people who have already owned a home for 5 years.

--------------------

WASHINGTON - Key Senate leaders agreed yesterday to extend a popular tax credit for
first-time home buyers and to offer a reduced credit to some buyers who already own
houses.

The tax credit provides up to $8,000 to first-time home buyers, but it is set to
expire at the end of November.

Senators agreed to extend the existing tax credit for first-time home buyers while
offering a reduced credit of up to $6,500 to repeat buyers who have owned their
current homes for at least five years, said Regan Lachapelle, a spokeswoman for
Senate majority leader Harry Reid, a Democrat from Nevada.

The home buyers’ credit would be available to individuals earning up to $125,000, or
$250,000 for couples, up from $75,000 for individuals and $150,000 for couples under
the current law, Lachapelle said.

The agreement was announced after the Commerce Department said sales of new homes
unexpectedly fell in September.

Lawmakers want to keep home sales from slipping as the economy struggles to recover
from the worst drop in prices since the Great Depression. Economists say a recovery
in housing is a key to rebuilding the confidence and finances of American consumers,
whose spending makes up 70 percent of the world’s largest economy.

The tax credits would be available to home buyers who sign sales agreements by the
end of April. They would have until the end of June to close on their new homes,
said a congressional aide, who spoke on condition of anonymity because he was not
authorized to discuss the deal.

Senator Christopher Dodd, a Democrat from Connecticut, has been negotiating for
several weeks with Senator Johnny Isakson, a Republican of Georgia, to craft the
extended tax credit. Senate minority leader Mitch McConnell, a Kentucky Republican,
agreed that most lawmakers support the homebuyer measures.

Senators were still negotiating the expansion of a separate tax credit that lets
money-losing businesses get refunds for taxes paid in previous years, providing them
with a source of cash.

Senators in both political parties were hoping to add both tax provisions to a bill
that would give people running out of unemployment insurance benefits up to 20 more
weeks of federal aid. The Senate could vote on the overall bill as early as today,
but lawmakers were still haggling over several unrelated amendments last night.

If the Senate passes the bill, it would go to the House, which passed a similar bill
extending unemployment benefits last month. House leaders have hinted they would
support extending the tax credit for home buyers.

Lawmakers didn’t release a cost estimate for extending the tax credit, though
similar proposals were projected to cost about $10 billion.

Industry representatives said uncertainty about the tax credit is hurting new home
sales. September’s decline was the first since March.

It takes 45 days to 60 days to close on a house, making it unlikely a sale made
today would be consummated by the end of November, said Lucien Salvant, spokesman
for the National Association of Realtors. “Buyers right now have an incentive to
hold off, not knowing whether the credit will be extended,’’ Salvant said.

Purchases of new homes dropped 3.6 percent last month to a 402,000 annual pace,
which was lower than the most pessimistic economist’s forecast, according to
Commerce Department figures.

Material from Bloomberg News was used in this report.

© Copyright 2009 Globe Newspaper Company.

Short Sales in Rhode Island

2009-10-23T11:57:00.000-04:00

Have you been thinking about using a Short Sale to sell your home before it goes into Foreclosure? Stonehurst Realty can help you. Please email us or call for a confidential (free) consultation. We have all the necessary means to list and sell your home with a miminal amount of stress!

Even if you're unsure, or just wondering about short sales, drop us an email. We are here to help.

RI Market Update by Karen

2009-06-26T12:09:00.001-04:00

Once again the market in Rhode Island has stumped even the most long term astute professionals. While everyone knows about the economy, school and church consolidations, high unemployment and numerous short sales and foreclosures that have racked Rhode Island for the past 4 years or so, no one could predict the current market.

Earlier this year there was a flurry of home buying, mostly bank owned homes, or fixer uppers. This flurry led to an increase in sales as was reported by the NAR. Then in spring, another small flurry took place, this time first time home buyers were coming out to try and take advantage of the $8,000 tax credit and the unusually low interest rates, combined with the monthly dropping of prices. This really was an excellent time to buy.

The biggest problem being that most of these homes needed work and rehab, thereby cutting out the first time home buyer who was looking in their price range and then would have to add an additional $10,000 to $30,000 to get the home up to par. Even with all the new programs, first time home buyers are still at a disadvantage when it comes to buying bank owned homes. The selling banks, 90% of the time, will accept a lower offer as long as the offer is CASH and AS IS. A first time buyer, especially one going through FHA, has to offer higher and then has to be able to finance the repair items. Most selling banks do not want to sit and wait for this to happen.

Another major problem, that I have seen repeatedly, is the Title's of many of these bank owned properties not being clear to close. Once this happens, extensions need to be signed and discussed, some lasting 3 months or more after initial closing date, forcing some buyers to have to back out of the contract. An important note to this is that Rhode Island prices have been dropping so quickly, that the house you bid on in January and waited for it to close for three months is now worth less than you bid!!

All these are daily happenings and all contribute to the disillusionment of buyers. It becomes a vicious circle and right now there is no end in sight. I spend most of my time searching for "deals" for my clients. It takes diligence and hard work and patience, but eventually we find the one.

Yes, everyone knows the market will eventually come back, but the damage done in this particular market has been almost devastating.

For the rest of this year, I would advise First time buyers to act quickly, not only to take advantage of the lower rates (which will definitely go back up), but also to take advantage of the tax credit. This is probably the best time you will ever see to purchase a home. Yes, it's a lot of work and somewhat disappointing to not get the house you bid on, but if you are diligent, your home will appear and it will be the right one.

Attention First time buyers!! $8,000 Tax credit !!

2009-05-13T15:24:00.002-04:00

Great new for First time homebuyers....You can use your $8,000 tax credit now torwards your downpayment!!!

From Realtor.org "Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, said that theFederal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a downpayment"

Now really is the time to buy!!!!

Newbury Village townhouse style condo!

2009-05-11T18:18:00.002-04:00

Picture yourself sitting in the dining area looking torwards this kitchen! This condo has absolutely everything you could ever want or need. Located in the Newbury Village complex in Cranston, RI, close to Scituate, it is in absolutely pristine condition. This is one of the largest condos in this complex, yet it is priced comparable with the smaller ones. This is an opportunity to move into this exclusive area. The discriminating buyer will appreciate this townhouse style with loft and two master bedrooms. Integral two car garage, basement is studded and wired, ready to use as more rooms if needed. See more in this virtual tour, or ride by and email me Karen at rihome.net

$8,000 Tax Credit!!! What it really means

2009-03-01T15:54:00.002-05:00

Here are some Frequently asked questions about the new $8,000.00 Tax Credit for First time homebuyers. This was taken from the Federal Tax Credit site if you would like to read more.

Frequently Asked Questions About the Home Buyer Tax Credit
The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.
Who is eligible to claim the tax credit?
What is the definition of a first-time home buyer?
How is the amount of the tax credit determined?
Are there any income limits for claiming the tax credit?
What is "modified adjusted gross income"?
If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
Can you give me an example of how the partial tax credit is determined?
How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
How do I claim the tax credit? Do I need to complete a form or application?
What types of homes will qualify for the tax credit?
I read that the tax credit is "refundable." What does that mean?
I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?
I am not a U.S. citizen. Can I claim the tax credit?
Is a tax credit the same as a tax deduction?
I bought a home in 2008. Do I qualify for this credit?
Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?
If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?
Who is eligible to claim the tax credit?First-time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.
What is the definition of a first-time home buyer?The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.
How is the amount of the tax credit determined?The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
Are there any income limits for claiming the tax credit?The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
What is "modified adjusted gross income"?Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine "adjusted gross income" or AGI. AGI is total income for a year minus certain deductions (known as "adjustments" or "above-the-line deductions"), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.
If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?Possibly. It depends on your income. Partial credits of less than $8,000 are available for some taxpayers whose MAGI exceeds the phaseout limits.
Can you give me an example of how the partial tax credit is determined?Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.
How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?The most significant difference is that this tax credit does not have to be repaid. Because it had to be repaid, the previous "credit" was essentially an interest-free loan. This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply.
How do I claim the tax credit? Do I need to complete a form or application?Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on Line 69 of their 1040 income tax return. No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests.
What types of homes will qualify for the tax credit?Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.
I read that the tax credit is "refundable." What does that mean?The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).
I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?Home buyers in this situation may file an amended 2008 tax return with a 1040X form. You should consult with a tax advisor to ensure you file this return properly.
Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been "purchased" on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after January 1, 2009 and before December 1, 2009.In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.
Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?Yes. The tax credit can be combined with the MRB home buyer program. Note that first-time home buyers who purchased a home in 2008 may not claim the tax credit if they are participating in an MRB program.
I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?No. You can claim only one.
I am not a U.S. citizen. Can I claim the tax credit?Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of "nonresident alien" in IRS Publication 519.
Is a tax credit the same as a tax deduction?No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $8,000 in income taxes. If the taxpayer receives an $8,000 deduction, the taxpayer’s tax liability would be reduced by $1,200 (15 percent of $8,000), or lowered from $8,000 to $6,800.
I bought a home in 2008. Do I qualify for this credit?No, but if you purchased your first home between April 9, 2008 and January 1, 2009, you may qualify for a different tax credit.
Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment.Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.Further, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. Some state housing finance agencies, such as the Missouri Housing Development Commission, have introduced programs that provide short-term credit acceleration loans that may be used to fund a downpayment. Prospective home buyers should inquire with their state housing finance agency to determine the availability of such a program in their community.
If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?Yes. The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.Taxpayers buying a home who wish to claim it on their 2008 tax return, but who have already submitted their 2008 return to the IRS, may file an amended 2008 return claiming the tax credit. You should consult with a tax professional to determine how to arrange this.
For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.

Is this a Buyers' Market?

2009-01-10T20:03:00.002-05:00

By this time, everyone that has anything to do with Real Estate should have heard that this is a Buyers Market.

What exactly is a Buyers' Market?

What it is supposed to be is a time when:
*Homes are priced well

*Loans are at low interest rates

*People are prepared to buy.

When all of the above criteria have been met, then it can be called a Buyers' Market.

Let's take a look at today's Real Estate Climate and decide whether or not it is a Buyer's market right now.

As everyone knows, Real Estate is Local. This means that while it may be a good time to buy in say, Florida, it may not be a good time to buy somewhere else. For the purpose of this post, I want to discuss the local real estate options here in Rhode Island. (since these are the only ones I am completely knowledgeable about:)

The first criteria: Homes are priced well....This seems to be fulfilled. Many buyers' are wondering if prices will fall even more here in Rhode Island. My guess is, yes, they will continue to decline for another year at least.

The second criteria: Loans are at low interest rates. This also seems to be fulfilled. Many buyers' are also wondering if rates will fall even more....My guess is, yes, they will continue to fall, again for another year or so, but then will level off.

The third criteria: People are prepared to buy...This is definitely not fulfilled. Partly due to high unemployment rates, the economy, poor credit and general uneasiness about the market.

With only two of the above criteria met, it would suggest that it is not a bonafide Buyers' market.

However......................

Homes are priced very well right now and combined with the lowest interest rates around in the past ten years makes this an excellent time to buy.

Consider what would happen if you wait until next year or the year after. Here is an example:

You purchase a home at $150,000. today at an interest rate of 5 3/4% for 30 years. Your principle and interest payments per month will be $876.00 per month.

Say you wait for two years and purchase the same home for $132,000. (this is a depreciation rate of .5% per month for 24 months) assuming the general trend here continues.

Two years from now, there is a good probability that the interest rates will have not only dropped but started climbing back up as is generally the case when home prices have dropped. Let's say they have only crept up to the original 5 3/4% and you go for a mortgage for 30 years. Now your mortgage payment would be $770.00 per month!

Sounds like you should wait? Wrong. First, what are you paying for the 24 months you are waiting? Are you renting at say, a low price of $500.? (rare in Rhode Island if you have more than one room). If so, then you are paying over the next 24 months $12,000 minimum and still do not own your own home!

On your mortgage you would have saved over the course of 12 months, $2,544.00! Subtract this from the $12,000. you have paid out and you are minus $9456.00!! (which if you had it to throw away, you could have at least used it towards your furniture in your new house)

This is only one example, based on a buyer using a loan to purchase. If you have the cash to buy, the example would be simple, again if you are renting, what exactly would you be saving by waiting? In the same scenario you would have saved, over the course of 24 months, $9,024.00! That's $4512.00 per year. In this scenario, it may be better to wait, unless you are unhappy with your current arrangement and really want to get into your own home.

Opinions are of Karen Hurst, Broker/Owner of Stonehurst Realty only. For a free consultation, visit me at Stonehurstrealty.com and find out if this is your time to buy.

Two Family Cranston RI REDUCED!!!!

2008-11-21T16:51:00.005-05:00

This is it! Your chance to own a two family in a great neighborhood and get help with your mortgage. See the Virtual tour below.

This house has been drastically reduced for a quick sale. This is a bank owned home and will be selling AS IS. Mostly needs updating. You will need a prequalification letter to make an offer, so get that first then call me. Don't wait too long.

Follow this link to see the tour.

New Housing Plan in a Nutshell

2008-11-12T09:02:00.009-05:00

Is there a Silver Lining in all the latest Foreclosures and Doom and gloom in the Real Estate Market? Maybe...Have you heard about the most recent possible help you, as a delinquent homeowner, may have? Here is a synopsis, taken from Bloomberg News, highlighting the general conditions needed to qualify.

Under the proposal, mortgage servicers will work with borrowers to reduce monthly payments to 38 percent of their gross income, a threshold of affordability, by lowering the principal, reducing interest rates and extending the length of the loan term. The plan doesn't include money from the Treasury's $700 billion bank rescue and isn't mandatory for companies that received federal aid.
Conditions and Fees
Homeowners that qualify will receive notices about the program. Their loan modifications won't become final until they have made three consecutive payments, and there is no limit to the number of times a loan can be modified. The new payment will include all of the borrower's monthly housing costs, such as taxes and condominium payments.
Fannie and Freddie are paying mortgage servicers $800 to process each modification, which isn't available for investment or vacation properties. Fannie and Freddie will absorb the losses on loans or mortgage securities they own while investors in mortgage bonds guaranteed by the government-run corporations will bear a brunt of the losses on that debt.

So, if you qualify, you will receive a notice. Refinancing your home to 38% of your income will help you make those monthly payments, stay in your home and breathe a little easier! Basically, this percentage is what it "should" have been in the first place.

Maybe the Holidays won't be so bad, after all!

Historical Election Day for the United States of America

2008-11-04T10:24:00.009-05:00

Today is November 4, 2008 and it is Election Day here in the United States of America. As many have said, it is historical for many reasons, no matter who is the President elect by tomorrow.

I voted this morning at Saint Mary's School in Warwick Neck and the turn out was not as large as I had anticipated. One of the volunteers did say that there was a large turn out approximately an hour before I arrived. I am not one for counting Electoral votes as I do not think they accurately represent the Vote of the People! To me, the Vote of the People should be the ONLY vote there is in any election. However, this is the way it is and we need to get out their and make our voices heard in sheer numbers.

My opinion is that many Americans have forgotten what our forefathers had originally intended when they wrote the Constitution. Especially the first amendment to the Constitution which is the Bill of Rights.

1 -freedom of worship, speech, press, right of peaceful assembly, right to petition the government

2 -right of citizens to bear arms3 -troops may not be quartered in private homes without owner's consent

4 -guards against unreasonable searches, arrests, seizures of property

5 -requires indictment by a grand jury for major crimes before trial, prohibits repeated trials for the same offense, forbids punishment without process & that you don't have to testify against yourself

6 -guarantees a speedy public trial for criminal offenses, trial by an unbiased jury, legal counsel for the accused, and that witnesses must attend the trial in the presence of the accused

7 -guarantees trial by jury in civil cases in anything valued at more than 20 US dollars

8 -forbids excessive bail or fines and cruel or unusual punishment

9 -people have other rights than those mentioned in the Constitution

10 -powers not delegated to the federal government belong to the states or the people

I would like my readers to take a moment and read each one, then stop and think about each one. How many of these are still the same in our current lives?Today is an important date in our history, not just because we have our first female vice president candidate and our first black candidate, but because our freedoms (Rights) have been usurped. The economy both in Federal and State governments has been grossly mishandled. We have been outright lied to and nothing can be done about it. Our rights to privacy are gone. The World hates us! The list is enormous and I do not have the time to list all the current problems we as a country are facing.

We should all be rioting in the streets, yet we are not.
Today is the day to be heard. If you do not vote today, you will have no recourse. Make this the day, we as Americans, stand up and be counted.

Take back our country. Our freedoms. Our Rights!

Green Hill Beach

2008-10-26T09:04:00.003-04:00

I took this photo about 6 months ago. It is a new home being built on a property that my Dad sold awhile ago in the Green Hill Section of South Kingstown. The original house was an older L-shaped ranch/beach house which we all miss! Apparently Green Hill is no longer a "beach" community of cottages. All the homes there are upscale. We do miss the old "neighborhood".

Neighborhoods in Rhode Island

2008-09-13T23:18:00.004-04:00

Once again Rhode Island Monthly has put together a great resource for Rhode Island neighborhoods. After each one there is a general synopsis of the neighborhood. Check it out here if you are wondering about a specific neighborhood. Also Active Rain has started their Localism site which will eventually be featuring small neighborhood areas.

Help for troubled homeowners

2008-07-30T08:58:00.003-04:00

A new housing bill was signed into effect. Here is an excerpt explaining how it will affect people in trouble with their mortgages, from CNN.
As with anything else, there is a price to be paid. Read the entire article.
************************************************************************
NEW YORK (CNNMoney.com) -- President Bush signed a $300 billion housing rescue bill Wednesday aimed at helping troubled homeowners avoid foreclosure and supporting mortgage giants Fannie Mae and Freddie Mac.
After the law kicks in on Oct. 1, thousands of at-risk borrowers will be able to refinance their unaffordable old mortgages into new low-cost fixed-rate loans insured by the Federal Housing Administration (FHA).
The Congressional Budget Office estimates that 400,000 borrowers with $68 billion in loans may benefit from the program - but the bill allows for as many as 1 million or 2 million borrowers to participate in the program.
Here's what homeowners need to know.
Who's eligible?
Qualified borrowers must live in their homes and have loans that were issued between January 2005 and June 2007. Additionally, they must be spending at least 31% of their gross monthly income on mortgage debt to be eligible for the program.
They can be up to date on their existing mortgage or in default, but either way borrowers must prove that they will not be able to keep paying their existing mortgage - and attest that they are not deliberately defaulting just to obtain lower payments.
Before homeowners can get FHA-backed mortgages, they must first retire any other debt on the home, such as a home equity loan or line of credit. Borrowers are not permitted to take out another home equity loan for at least five years, unless it's to pay for necessary upkeep on the home.
To get a new home equity loan, borrowers will need approval from the FHA, and total debt cannot exceed 95% of the home's appraised value at the time.
How can I apply?
Borrowers can contact their current mortgage servicer or go directly to an FHA-approved lender for help. These lenders can be found on the Web site of the Department of Housing and Urban Development.
How does the refinancing process work?
This is a voluntary program, so lenders holding the original mortgage have to agree to rework a given loan before things can get started. The bill requires lenders to make major concessions, writing down the value of the loan to 90% of the home's current value. In areas where prices have plummeted by as much as 20%, that will mean a substantial loss for the lender.
But lenders won't sign off on a workout unless they think that they'll lose less money on that than they would by allowing a home to go through the costly foreclosure process.
Each loan will have to be underwritten by an FHA lender on a case-by-case basis. That means the banks will do a new appraisal to determine the home's current value, as well as examine and verify income statements, bank accounts, job histories and credit scores.
Based on that new appraised home value, the FHA lender must determine how much the original lender has to reduce the original mortgage, so that it will reflect 90% of the home's market value.
If the original lender agrees to the writedown, the new lender buys the old loan and takes over the reworked mortgage.
As part of the deal, the old lender writes off any fees and penalties on the original mortgage, including prepayment penalties, and accepts the proceeds from the new loan on a paid-in-full basis. Additionally, it pays the FHA an up-front premium equal to 3% of the mortgage principal.
What does it cost?
There should be little up-front costs for borrowers to bear. Loan origination fees will vary by lender, but these can usually be paid by the borrower over the life of the loan in the form of a slightly higher interest rate.
However, the refinanced loans do come with many strings. For one thing, borrowers are responsible for paying an insurance premium to the FHA guaranteeing the loan, which will be 1.5% of the principal annually.
Borrowers also agree to share any profits from future home-price appreciation with the FHA. To do that, they'll pay a "3% exit fee" of the mortgage principal to the FHA when they resell or refinance.
Plus, they'll agree to pay the FHA 100% of any profits they realize from higher home prices if they sell or refinance within a year. So if the original loan principal is $200,000 and the home sells for $250,000, the borrower will owe the FHA $50,000, minus costs.
After a year, borrowers will share 90% of the profits with the FHA. The percentage keeps dropping in 10% increments to 50% after the fifth year, where it stays.
What will I save?
Savings depend on what borrowers are paying for their present loan and where they live, but for most people it will be substantial, even after factoring in the FHA fees.
In areas that have sustained huge price drops, such as Sacramento, Calif., where prices have fallen by about 30% over the past year, some loans might be reduced by more than 40%.
Additionally, the FHA loans carry reasonable interest rates, which are fixed for the life of the loan, as opposed to a subprime adjustable-rate mortgage that can jump higher every six months.

Washington Park area home for sale

2008-07-29T11:36:00.004-04:00

THIS HOUSE IS SOLD. EMAIL ME FOR OTHERS

Looking for a large home for a large family? Or are you looking to rent out rooms to help with mortgage payments? Don't let this one slip by. Priced at a very low $115,000, you can click Here to see the virtual tour.

Four beds, full partially finished basement, vinyl sided, newer roof.

This is a bank owned home and will be sold as is. The kitchen needs updating and home requires minor tlc.

Call your Realtor or email Karenhurst@rihome.net

Happy 4th of July!!

2008-07-03T16:01:00.004-04:00

To all my friends, family and clients.

Happy Fourth of July!

Hope you are celebrating this important day of Freedom in the United States of America!

*clipart courtesy of Ace Clipart: http://www.ace-clipart.com/american-flag-clipart-01.html

Cute little bungalow for handy person

2008-06-03T13:51:00.004-04:00

THIS HOUSE IS SOLD, EMAIL ME FOR OTHERS

Cozy little cottage by the Lake in Warwick. This home has loads of potential for someone who is handy and has a little vision.
Priced at $79,900!! Can't get much lower than this. Ride by 285 Lakeshore Drive, then email me.

House for Sale Warwick, RI New Price!

2008-05-01T11:11:00.006-04:00

THIS HOUSE IS SOLD. EMAIL ME FOR OTHERS

38 Largo Road in the

Strawberry Field section of Warwick!

Cute 2 bed ranch in need of someone to take care of it! Fully fenced back yard w/shed. Good sized deck, attached garage, full basement, gas heat, everything you have been looking for!

This is a bank owned home. What that means to you is when you make an offer, have your prequalification letter ready and be prepared to buy AS IS.

This home needs TLC, ie painting, cleaning.

Priced reasonably at $167,000.

Email me for a showing at Karenhurst@rihome.net

Rhode Island First time homebuyers' dilemma

2008-04-28T17:41:00.002-04:00

Are you looking to buy a home in Rhode Island? Are you a first time home buyer without any savings?

It used to be that you could go to RIHMFC (Rhode Island Home Mortgage and Finance Company) and if you had decent credit, be able to borrow 100% of your mortgage and get help with closing costs. In the past couple of weeks, RIHMFC's criteria has changed. This is due to all the mortgage mess we have been hearing about in the news and all the foreclosures going down.

There are two schools of thought on buying a home with a 100% mortgage. One is that people should be "saving" for their own down payment and their own closing costs. The other is that many, many people will not be able to own their own home without this help.

I am one of those people who has an obsession for putting people into homes of their own. This is the reason I went into Real Estate! Nothing makes me happier than searching for a home, uniting someone with a good Mortgage broker and a great loan and then seeing them in their own home. In my opinion there is a psycological feeling of pride when someone actually buys a house. It changes their whole perspective on things. It is called "nesting". Both men and women have the nesting instinct.

The point of this post is simply to remind people that even though there are many changes going on in the mortgage industry, there are still many programs out there to get you into your first home. Don't give up! Call a Realtor, preferably me:) and I will advise you on what you need to do.

Most importantly in these turbulent Real Estate days, you need to have good credit, so make sure you pay your payments on time and try to clean up any charge cards or loans you may have.

If you are looking for a home in Warwick, Cranston, or East Greenwich, and need some help, I am here for you. Happy Hunting!

Home for Sale Warwick, RI Spring Special

2008-03-25T17:41:00.004-04:00

THIS HOME IS SOLD! EMAIL ME FOR OTHERS.

Incredible opportunity for a prequalified first time homebuyer! This is a bank owned home which needs very little. (mostly paint and cleaning). It has two beds and there are three finished rooms in the basement that could be used as bedrooms. There is a fenced yard and it is close to the Marinas in Warwick in a wonderful looking neighborhood! This house must be sold AS IS, but you will be amazed at this much house for the price which is at an affordable $178900. This will not last. Call me now for a showing. 401-301-6887

Crazy Rhode Island Real Estate Spring Issue

2008-03-16T12:43:00.005-04:00

This month Rhode Island Monthly put out in their March issue some thoughts on the Rhode Island Real Estate Market. It's a great article, and of course, since I am quoted in it, I am leaving a link here for your purusal. If you are considering buying or selling, this artical is an important read!

If you are interested in foreclosures, check out my REO site or my REO blog.

Beach and waterfront communities are still holding their value, so this is a "good" time to sell in these areas.

Investors take notice!!! New Price

2008-02-14T12:00:00.007-05:00

THIS HOUSE IS SOLD. Email me for others.
$80900!!!!!

Private lot next to Pawtuxet River located at end of cul de sac. Newer windows, vinyl siding, roof and cement driveway.

Interior needs much work. Carpets, walls, floors, etc and basement also needs work.

This is a bank owned home selling AS IS with all offers to be accompanied by a prequalification letter.

Priced accordingly at $80,900! Ride by and email or call me! Home is located in Warwick, Rhode Island at 3 Byron Boulevard.

Click for Virtual Tour.

Best places to live in Rhode Island

2008-02-07T12:04:00.001-05:00

Have you ever wondered what are some of the best places to live in Rhode Island?

Choosing the right city or town is very important. You may have small children and need to know about the schools. You may be concerned about paying higher/or lower taxes.

You may want to know if most of the people there are in your own age group and if their incomes are compatible with your own.

There are many ways to find out if you are choosing the right city for you! With the Internet we can read blogs, search out homes from foreclosures to waterfront homes. We can look through virtual tours and send an email right from our desk.

One of the sites I have found to be helpful for data in choosing your home in Rhode Island, is located on Rhode Island Monthy. This is a magazine dedicated solely to Rhode Island and is well worth your while to check it out.

Here is the link to the data that Rhode Island Monthly has compiled regarding places to live in Rhode Island. If you are considering a move, then check it out.

Investors or Handy person!

2008-01-22T14:08:00.002-05:00

Cute little bungalow for sale at very reasonable price! $99900.

This home is bankowned and needs interior work, but has a good sized rear yard, a view of Warwick Lake and is a very cute condo alternative for someone with vision and willing to put in a little sweat equity.

Ride by 285 Lakeshore Drive, Warwick, RI and email or call if you are interested!

Patriots Rule!!

2008-01-19T11:24:00.001-05:00

I am interupting my usual Real Estate blog to address a situation brewing across the nation.

Apparently, not everyone realizes what the Patriots can and will do in this season of complete wins!

I guess they just have to win them all to PROVE to the doubting Thomas's, that they are UNBEATABLE. (Even on a bad day!!)

Here is a link to a doubting Thomas....I am not debating the Cats prediction, but the Chargers???

UPDATE!!! On to the Super Bowl!!!

If you want to pay your respects to the Patriots click here!

See you tomorrow night!

What is a Buyers Rep?

2008-01-17T17:23:00.000-05:00

Today I was chatting with a nice young lady about purchasing her first home.

After the intial focusing on what she was looking for, where she would like to live, what her finances were and was she actively looking into finding a mortgage that was right for her, it occurred to me that she was waiting for me to tell her what my fee was.

Now this does not always occur to me because "I do not charge a fee"

Here is what goes on. First let me say that besides being a Broker, I am an Acredited Buyers Rep. This means that if you are looking for a house, I can assist you in not only finding it, but advise you of best places to go for a mortgage, give you helpful ideas about which mortgages are right for you, why you need the house inspected and places that you can call, how to make an offer that will be accepted or at least countered. I can give you loads of options, because this is my profession. If you have a question I will give you the answer. Now, why would I not charge for all this? Some Buyer Agents do charge in different areas of the U.S., and some right here in the Ocean State, but I do not. The reason is, most of the buyers' I work with are first time home buyers and they do not always have the finances to come up with a separate fee for a Buyer Agent.

Of course I need to make a living just like everyone else. Upon closing, I receive a fee for my services from the seller of the house. So there is no need to worry about paying a Buyer Agent! I actually thought, until my conversation today, that people simply knew this, but apparently it is not common knowledge. What I do is have a buyer sign a contract saying they will work exclusively with me for a prearranged amount of time. This way I know a buyer is committed to finding a house. If, after the prearranged amount of time, I have not found the right home, then we go our separate ways. There is no charge for my time for this either. The reason for this is I am pretty confident in my abilities to find what a Buyer is looking for! I feel that if I can't find it, it's not out there!

I hope this clears up any concerns for Buyers that would like to work with a Realtor, but do not think they can afford it.

Rhode Island Real Estate 2008

2008-01-03T13:01:00.001-05:00

Sigh! This picture is a definite portrayal of how I feel after the Holidays! Now its January 2008 and as a Realtor, I am expected to start the new year with a rush! The stats for 2007, especially in Rhode Island, were not good, as you all know. Rhode Island was second to Michigan in losing population. We were 8th in foreclosures. The mortgage industry has realigned and unless you have impeccable credit and a good work history, you can plan on paying much more in interest rates for a home. We are reading doom and gloom everywhere about the Real Estate Industry. I have been working with REO's, which is Real Estate Owned property. This means that the bank has bought back their interest in a foreclosed home. These homes are actually still selling due to the fact that they are cheaper then the regular market. However, there are so many of them, that the prices are actually driving down prices of what we call market value homes! This is a tough pill for Sellers to swallow. Many sellers viewed the equity in their homes as actual money! Real estate is very much like the Stock market. It is not actual money until it is in your pocket!

I was interviewed for a piece in Rhode Island Monthly last month. The advice I gave and still give is: If you do not have to sell your home now, don't! If you do have to sell it, make it pretty and price it well. There is a lot of competition out there, but this does not mean you have to give it away. Check with a Realtor and find out just what prices are doing right now and then price yours accordingly. Do not try to price it by what you paid for it, or what you refinanced it for. Picture yourself as the buyer and view your home with a keen eye. Would you be impressed when you first walked in? Is there any odor from animals? Is it clean? Why would someone want your house as opposed to the 4000 others out there? Remember, location is important, but price rules!!! If your home stays on the market for more than three months, even after you have lowered your price, it starts becoming stigmatized and even a good buyer will pass on it, thinking there is something wrong with it.

Now on the other side. If you are a Buyer looking for a deal and are qualified for a good loan, then I would suggest you also contact a Realtor and get your ducks in a row. The market will go down within this next year, but no so much that you can afford to wait forever. It will also start rising again, my guess, around mid 2009! Take a look around and figure out where you can get the most for your money. History dictates that prices will rise again, so do not miss out by trying to play the market!

Research is key to making qualified decisions. I spend many hours researching the housing market and while I do not have a Crystal Ball (actually I do have one:), my predictions are based on everyday knowledge. This is my career! Be careful who you listen to when you are anticipating one of the largest deals in your life!

Holiday Greetings

2007-12-23T13:42:00.000-05:00

I belong to an art class where once a week we all get together, chit chat and paint. With music playing in the background and in a small cottage right on the water, the inspiration to paint comes easily. Some are using watercolors, some oils and some acrylics. I have tried them all through the years. I was fortunate enough to major in Fine Arts in college, and also to have studied under Herman Itchavitch (deceased) during my lifetime. There is no better feeling than painting, to me. All my problems disappear as I concentrate on my canvas. Sometimes the paintings don't come out the way I wanted them to. (more often than not:) and these go into a bag. The bag is stuffed to overflowing right now. Other times, a painting will just click and even I am amazed at how it turned out! Those go on my walls at home. Years ago I used to sell them, but I actually found myself missing my own paintings and started re painting some of the scenes I had done. My point is that I am using the photo on the left for my Holiday Greeting because I painted it. It's not one of my best, but for those of you who received cards from me, you know that this was my Holiday Card!

For those of you who may not have received a card, this is it!

Happy Holidays, peace and health to all of you!

Holiday Stress

2007-12-14T17:44:00.000-05:00

Are you feeling stressed out? Working or not, the Holidays can be a stressful time for many. Searching for that perfect gift and trying to not break the bank while you're doing it. Wrapping presents, planning feasts, visiting family and friends, cleaning your home, all contribute to the stress factor. All this while you are trying to live your daily (and probably already stressful) life!

Don't feel alone! You are not. Most people do get stressed during the holiday season. Add to this the New England cold weather and we are all dreaming of warmer shores.

There are no easy ways to completely alleviate stress, but there are some things you can do to make it somewhat less trying.

Make lists! This is important. Make lists of everyone you are buying a gift for. Then decide on the amount you will spend on each one. Then write down several possible gifts for each one that might fall in that price range. Start your shopping early. Theres no better feeling than having bought all your presents (and having them wrapped too) the week before Christmas.

If you are hosting the Family party, make lists for that also. Lists of who is attending, drinks, foods. Then plan your time accordingly. When you will shop, when you will cook, when you will call the bakery.

As you go through your lists of things to do, be sure to cross them off as they are done. Make the lists as long as you like and make each thing to do small. This way, you will have a feeling of accomplishment as you see so many items crossed off.

Lastly, and just as important. You have heard that you need to take time for yourself and you say, yeah, right! The truth is, you "can" take at least ten minutes a couple of times a day. In the morning and in the evening. Try to be somewhere alone and clear your mind. Do not think about anything at all. If you find this hard to do, then focus on something that brings you pleasure, a vacation that you took, or would like to take. The important thing here, in this ten minutes, is to NOT think about all you have to do!

Remember, there's only a couple of weeks left and you will have your Holiday memories!

Peace to all my friends and family during this Holiday Season!

Where do you Rank?

2007-12-02T09:43:00.000-05:00

I read an article in the Providence Journal yesterday regarding MLS agents in Rhode Island and the measurement of their sales. A side is considered each end of a transaction, ie, Listing side and buying side. If you listed and sold the same property you have two sides.

This article breaks down by percentages how many sides are completed by each agent. The article was mostly referring to the difference between new agents (this year) and more experienced agents, however it gives a good synopis of probability of sales.

•36.24 percent had no sides
•38.51 percent had 1 to 4 sides
•16.4 percent had 5 to 10 sides
•8.85 percent had 11 or more sides

Keep in mind that these are Rhode Island statistics and may vary in other states, yet will give you an idea where you rank in sales.

From these statistics, we can narrow down to 75% 4 sides or under and 25% 5 sides and over.

Image from Beacon Learning Center. Article from Projo.com

Rhode Island Buyers Christmas

2007-11-12T08:52:00.001-05:00

Yes, Virginia, it is now Christmas for Buyers'.

The rates are low, the homes are priced lower. If you haven't been paying attention, it's time to do your Christmas shopping for a new home.

Time to Buy

2007-11-09T17:17:00.001-05:00

It really is starting to be the "Time to Buy" here in Rhode Island. Mortgage rates are lower and sellers are actually realizing that they need to lower their prices if they want to sell their homes.

If you are in the market for a home, get yourself to a good Lender and get pre approved. There are numerous homes on the market and you can negotiate a pretty reasonable price, especially as we go into the winter months.

So, if you are looking for a deal in Rhode Island Real Estate, you may just find one now.

Waterfront properties and surrounding areas have also reduced drastically. A home that you could barely look at a couple of years ago, is now in your price range. Yes, there are still some overpriced homes out there, but they will still be there next year and probably a lot cheaper.

Pay attention to this market, it won't last forever. Markets are cyclical, the prices will rise again. Have your Realtor keep you up to date on the homes that you are interested in and get the best deal for you, the Buyer!

The American Dream is still obtainable! Especially right now and in the next 1 or 2 years.

How to make money buying Real Estate

2007-10-29T13:17:00.001-04:00

I guess everyone wants to know the answer to this. The problem is that everyone already knows the answer.

It's very simple, "Buy low, Sell High".

That is all you need to know to make money in Real Estate.

In the past few years, many investors tried to buy homes, but they miscalculated and bought High. Now they are reluctant to Sell low, which, while understandable, is creating a large supply of homes on the market.

Home buyers that planned on living in their home (Owner occupied) who bought in the past few years, also "Bought High". They are not inclined to "Sell Low".

All of this "emotional" buying and selling creates a down market.

This, coupled with the Mortgage Industries' problems this past year, have created a stagnant market.

Rhode Island Real Estate has been in a turmoil in the past few years. After the Credit Crisis of the late 1980's and early 1990's the market started on an incredible upswing. Unless you have been living in a cave, you had to have noticed the High prices of homes. Homes were selling so fast that bidding wars were everywhere.
Of course, you knew, and so should everyone else have known, that this would not last.

Now, the market has been steadily declining. Homes bought in 2005 no longer command the price they once did and have actually dropped. Tax assessments in most cities have continued to rise and some are now assessed at over the Market Value of the home.

The market will not remain stagnant for long. It has to move. Figure it out for yourself. Which way will the Market go?

Are you looking to rent?

2007-10-19T19:41:00.000-04:00

If you are looking to rent a home, with a possible option to buy, please contact me.

Homes, as we all know are not selling as fast as they used to. If you wanted to buy, but are not quite ready yet, have a good credit score and are interested, let me know.

First and last months deposits would still be a requirement. The difference is, you would be working torwards your own home. You would be responsible for the maintainence of your home, just as if you had bought it already.

We have several options to consider, but if you don't contact me, you may lose out on a great deal!

82 Fuller St, Warwick, RI, $198,900

2007-09-27T09:06:00.000-04:00

Here is your chance to get into a BRAND NEW HOME in Warwick for an unbeatable price!

This home has been totally rebuilt from top to bottom, includes an extra lot, central air, brand new hardwoods and wall to wall. Everything is new and ready to move in.

This is a perfect starter or empty nester home. It has two bedrooms, storage in the attic, a laundry area with closet space, vinyl sided, new roof, all new everything! You cannot go wrong, there is absolutely nothing to do but move right in.

Don't wait, email me now!

Click for Virtual tour of this home.

Internet Technology

2007-09-08T18:43:00.000-04:00

I do not consider myself particularly tech savvy. I can spend hours and hours looking up different things and ways to do things on the web and then promptly forget them as soon as I start something else. However, I do have a blog or two or three:) Does this make me ahead of the game? Don't know. I believe that in the near future, blogs will be as old hat as emails and we will be on to something new. Meanwhile, there are so many things I can use my blogs for as a Realtor.

One, I can upload photographs and listing information that can be read instantly worldwide! That alone is a major tool for a Realtor!

Two, I can write whatever I feel like writing any time I feel like writing.

Three, I can have as many blogs as I want. One for every little interest. I could even have one for every listing if I wanted to.

Four, I can publish an invitation to all my friends via one of my blogs and they can all respond instantly. Blogs are almost better than email, except they are not private.

I can also share photos, link to other blogs or websites or quotes, the list is endless. I seriously do not know how I existed before blogdom!

Please take a moment to puruse my listings on this blog and email me if you have any interest.

Also, if you are looking to buy in Rhode Island, drop me a line or comment here, if you like.

Save your home!

2007-08-31T22:31:00.000-04:00

If you are in trouble on your mortgage payments due to having bought a home with an ARM mortgage and now your new payments are coming due, you need to read this article written by fellow Active Rainer , Aaron Gordon Mortgage Banker on the new guidelines from HUD. It may save your home. Here is the article This article explains the way it will work, who will be qualified and provides links to Hud. Good Luck.

Why Isn't my Home Selling?

2007-08-25T16:37:00.000-04:00

For the many, many home owners out there with their homes languishing on the market and wondering why their home is not selling. Here are some tips. Top of the line tip: Your house is overpriced! Whether you are pricing it yourself or you have a Realtor, look at the actual comparables of houses that sold in the last three months that are close to your neighborhood and similar in style, size and condition to your home. Next, check out what is also for sale in your neighborhood. Put yourself in the buyers seat and look at all the homes for sale. Why would they choose your house?

After you are satisfied with your price, you now need to look at the "appeal" and condition of your home. Does it show well? When someone drives by, do they think "That's a nice house"? Or do they not notice it at all? Or worse, do they think "what a rat trap"? All these thoughts are what makes a buyer automatically put a "mental price" on your home. You want them to hear the price and think "What a great deal"! I need to move on this one.

And last, but not least, a sign in front of the house, while it will catch some buyers, is not the only thing you should be doing to advertise. If you have a Realtor, then he/she will automatically be doing everything possible to get your home advertised, but if you are doing it on your own, you need to advertise everywhere you can, both on the internet and in local classifieds.

While this is not a "standard" buyers market. (The prices have not gone down enough) It is definitely not a sellers market and you need to do whatever you can to promote your home. Happy Selling. Feel free to email me with your questions/concerns.

Making Realty a Reality

Rhode Island Real Estate

2007-08-18T15:20:00.000-04:00

What happened to Real Estate in Rhode Island? We all know about the Mortgage loans that dissappeared. The foreclosure rate has escalated and people are moving out of their homes. Where are they going? I happen to know that a lot of peope are moving to apartments. The reason I know this is because I sell REO homes. These are homes that have already been foreclosed and are now owned by the Banks that held the mortgage. Some of these homes are good buys for the first time homebuyer who wants to build a little sweat equity. Yes, some REO's are a waste of time and only good to a builder due to the lack of plumbing, heating and windows. However, if you are patient and keep looking, you can find some real gems. Also, when a builder buys one of these houses, he/she goes through the entire house and beleive me, these homes are like brand new! I have one on the market now that is a shadow of its' former self. So while a lot is going on in this market, and a lot of rumors, people are still moving around for various reasons. The Real Estate Market will always be around. We all need a place to live.

Great family home in West Warwick, RI PENDING!!!

2007-08-10T12:29:00.000-04:00

3 Bedroom home for sale in West Warwick, Rhode Island

This is a Bank Owned home priced under normal market value, waiting for your personal touches. It needs a minimum amount of work. Painting, etc.... Pull up the rugs and expose hardwoods. Make this your new home with your creativeness and build some sweat equity. Offered at $190,500. Bring prequalification letter and make an offer.

Check out the Virtual tour

Warwick home for sale $215000

2007-07-30T11:27:00.000-04:00

Totally rebuilt home, in the heart of Conimicut, Warwick, Rhode Island

Builder spared nothing and includes extra lot. Move right in, like Brand new!

Please go to this link to see a Virtual tour of this delightful home with Central Air and hardwoods. See Virtual Tour

Tall Ships come to Newport Rhode Island

2007-07-02T13:10:00.001-04:00

Yesterday I had the privilege of being entertained, fed and hosted onboard our good friends Joe and Peg's lovely yacht.

We arrived just beyond the Jamestown Bridge and set anchor preparing to spend our day watching the Tall Ships.

We had heard they were starting at 12 but from our vantage point, it was much later, around 1:30 before they started coming into view under the bridge. I took a zillion photos, but can't post them all here. So here are a couple and the rest will be on my ricoast blog and some on my Active Rain blog.

The weather cooperated nicely as it was an absolutely gorgeous day. Although watching the Tall Ships from afar is not as exciting as being up close (so you can hear the marching band music), it is still a thrill to view them as they parade in majestic magnificence around the island, swamping in size and detail the zillion boats of all shapes and sizes that swarmed around them.

It's not only seeing the Tall Ships, its being a part of all the other boats in Narragansett Bay, enjoying the sun and just having a great day. Thankyou Joe and Peg!

153 Finch Ave Pawtucket Rhode Island $174900!!!

2007-06-07T09:03:00.000-04:00

First Time Homebuyers Or Investors

THIS IS THE CHEAPEST RANCH IN PAWTUCKET!
Newly painted exterior and trim.

Here is yet another great opportunity for you to get into a new home for under market value!

It boasts 3 bedrooms with hardwoods and a fireplace in the living room. A full basement affords loads of storage room.

This home needs Interior paint and a little (very little) TLC.

You will be buying this home AS IS. It has a full basement and cute yard in a great neighborhood! Ride by and take a look, then email me and we can discuss how I can get you into your new home! KarenHurst@rihome.net

"Making Realty a Reality"

15 Aurora Avenue Cranston RI

2007-04-29T10:55:00.000-04:00

THIS HOME IS SOLD!

Don't miss this opportunity! At the end of a dead end street. Many upgrades already done, just needs a little TLC!!!

Make this your first home.

Offered at just under $205,000!

This is a foreclosed home. In Rhode Island sometimes these are the "best" ways of affording a home. If you are even the least bit handy, this is a perfect starter home, with three bedrooms, carport, secluded yard, fireplace, partially finished basement with bath, Central air!!

Please bring proof of funds with all offers!

My First Home

2007-04-17T19:16:00.000-04:00

I was reading a comment on another blog of mine today, and someone mentioned how we, as Realtors, bring our lifetime experiences to the table of Real Estate. It made me think of my first home buying experience. When we first start out looking for a home, we are very excited. We check out all the websites and look through all the Virtual Tours and ride by as many homes as we can. This can go on for a couple of years. After awhile, we start getting serious and call a Realtor. Now we are still looking on the websites and sending him/her what we find and he/she is sending homes to us. We are starting to check out the insides of these homes. It's still very exciting. We can picture ourselves, or not, in some of these homes. We start to narrow down our choices, because the more homes we look at the more we can realize what we actually like or dislike about a home. Then one day, "this is it"! You know when you walk in the door that this is your new home. Now you go through the financial aspects of it and there is delay after delay, more paperwork needed, but you don't care, you just want the closing to be over with, so you can get in that house and start decorating! You have it all pictured in your mind, what you will buy and where everything will go. Then you move in. Well now you realize (actually you realized before but that was no fun), that you simply do not have the money to redo the entire house, buy furniture, appliances, rugs, etc. So you have to make do with one room at a time. Eventually, a lot of sweat equity can net you a very cozy place and right now Rhode Island Real Estate appears to have quite a few foreclosures on the market. You can pick up a neat little house for just under $200,000. Sure it will need work, but most of the homes I have seen need the basics that you would do in your own home anyway, once you lived there for awhile. So, if you're Realtor wants to show you some foreclosures, go ahead and look. You will need Vision and be able to picture how it will all look after you put in your own ideas, but your home will be worth more than you paid for it in no time at all. Now is the time to get a good deal, don't let it pass you by!

Rhode Island Real Estate Buyers get Ready Now!

2007-03-23T20:09:00.000-04:00

Spring is here and as most people know, a lot of homes are going on the market. Homes "look" better in the spring and its more fun to shop for a home when there's no snow on the ground. If you are looking for a home, I would advise you to get started now. You need to get yourself approved for a mortgage, find out how much you can afford and get looking. If you want to work with a Realtor, start looking for one you feel comfortable with, who will take the time to find out what you want and spend some serious time actually looking for your new home! Don't be discouraged by all the news you may have been hearing in Rhode Island Real Estate, about sub prime mortgages, foreclosures, stagnant markets....This is the time to find some good deals. Yes there are a lot of foreclosures. Yes there are a lot of houses on the market and yes, the 100% loans are going through a tough time. There are still great programs out there for you and a much wider spectrum of homes to choose from..So find a Realtor and start looking! Rhode Island Real Estate is hopping! Make sure you are ready. I have buyers now that are already approved with letters in hand. We are ready to make an offer as soon as we see the "right" home. Don't be left out of the game by not having your letter ready. Know your market and be prepared. This won't last forever!

Rhode Island house hunting

2007-03-09T20:11:00.000-05:00

There has been a great deal of commotion lately regarding the Mortgage Industry. Websites have been set up to keep track of all the Companies that are going out of business due to poor lending practices.
What does this mean for you? If you purchased your home in the past 2-5 years and used a creative mortgage, ie: arm, interest only, even some no downpayment mortgages, then you may be one of the many hurt by these latest happenings.
You may have heard about the increasing amount of foreclosures in Rhode Island. Well some of this is due to these formerly mentioned lending practices. I am not going to go into who is to blame for this, because ultimately, it falls on the consumer to pay attention to his/her own finances. However, I believe that, at times, a borrower tends to think that the Lender "would not give him a loan if he could not afford it".
This, as you may now be aware of, is not true.
If you or someone you know is in this unsatisfactory position, and depending on how long and other factors, you need to address the situation as soon as possible. Don't wait until it's too late. The last thing you need is to lose your home. The lending laws are in the process of changing, but it will take time for the results to be seen.
I had a call the other day from a young girl who bought her home two years ago (I was not her Realtor:). She applied for a mortgage and was approved for an interest only mortgage for three years. After the three years the payments would change to include the principle and a higher interest rate. Basically her payments will probably triple. Now, she says she cannot even afford the original "interest only" payments. She called me because she had seen a foreclosed home I had on the market. I had to explain to her that she probably had no equity in her home because the market in Rhode Island had been stalemating. There really wasn't anything I could do for her, other than try a short sale, but she was still thinking she could "switch" houses. She is sadly, out of luck.
Please, please, please, when you are looking for that new home, do not get so caught up with the dreams that you lose track of Reality! You probably know way before you get to the loan application what you can really afford. Don't forget it!

Rhode Island Real Estate

2007-02-13T10:16:00.000-05:00

Okay, I'm back from my little vacation. Actually I have been back for 3 weeks! Blogging has taken a back burner because I have been so busy. I thought I would pop in here today and give my perspective on the Rhode Island Real Estate Market.

Lately, there have been numerous foreclosures in and around Rhode Island. The investors are out in droves looking for a good deal. And who can blame them? They are fully equipped to come in and gut a place then put it back on the market for a higher price. There is an inordinate amount of work that goes into these "projects" that I don't think the average person realizes.

What I have also found is a lot of first time homebuyers looking at rehab houses because they think its the only way they can afford to get a house.

Some of these houses are in dire need of COMPLETE rehab and there is no way someone could live in them and work "on the weekends". I find this very sad, because it means that these people cannot find a home in their price range!

There are, however, still some great Mortgage products around that not everyone knows about. I still have the belief that if you have a job for at least a year and not a lot of credit debt, then you can still own a home in Rhode Island. Sure it takes awhile to find something that you feel you would like, but it's not impossible!!!

So for all those people out there that think they can't afford a home....Call me! If there is any way possible, I will find it.

Realtor Vacations?

2007-01-10T09:16:00.000-05:00

Should a Realtor take a Vacation?

It's been awhile since I have taken a vacation, so I decided to "block some time" and get away. The nature of Real Estate (in Rhode Island at least) means you are available 24/7! I have always pledged to get back to people in a minimal amount of time, by email, phone, etc., so to take a vacation means that I cannot do this.
Scheduling this vacation was more work than I thought. I had to go to each website that I use and block out the time, send emails to everyone and call the people I am working with. I am in the middle of a negotiating offer and counteroffers and if it doesn't happen today......???!!! Arrrghhh.
It was actually more work for me to prepare for this vacation then it would have been to stay home! Of course I had to get Jake (my dog) and Max (my cat) taken care of and Blackie (the feral cat that has visited me for 7 years twice a day) fed. I have to clean my house!~ LOL.
Okay, I am down to the wire now. Big question, should I take my laptop? Or should I go technologyless (that may not be a real word:) and just veg out. I am leaning torward the latter, but I feel guilty:) Well, see you when I get back. PS You can still email me so I guess that tells you what I decided. And to my new buyer that I met with on Monday, I am still searching. Guess I answered my own question. Realtors can not take vacations! See ya!

Wireless for Rhode Island

2007-01-10T01:35:00.000-05:00

Just read a post that Rhode Island is going wireless. Maybe I can hold off on that card for a few more months. You can read about it here.

Coastal Serendipity

2007-01-09T22:24:00.000-05:00

If you haven't already noticed, I Love the Coast. I cannot imagine living any further inland. I did not grow up on the Coast but I always had an affinity with it. I have driven to many of the beaches and little seaside hideaways hereabouts in RI. I did not get to visit Block Island until I was 30! Amazing as its a 40 minute ferry ride from Point Judith! I know a lot of Rhode Islanders who have not been there. They do not know what they are missing! I have since been to BI hundreds of times, spent many a weekend there, both in hotels, inns and on my boat and my brothers boat. It never changes. I guess that's one of the reasons I love it. Although the past few years it has attracted a lot more people. The homes have increased in value due to the incredible beauty of the Island and I do have piles of photos which I will be getting up here soon. The parts of BI that have made the most impression on me are the people that live there year round. Not in the mansions, but in the little cottages that can barely be seen behind the big hotels. These people are the heart and soul of the Block. Have you ever noticed the smell of the Island? Incredible. Guess you have to be there to feel the peace!
I have just started another blog on the Coast of Rhode Island. Not much there yet, but stay tuned.

2007-01-04T19:30:00.000-05:00

What you should know about the Rhode Island Real Estate Market
Paul Silver wrote in his article on Active Rain that now is a great time to buy and I agree. This last year has had home buyers holding their breath trying to decide whether to buy now or wait out what was starting to appear to be a possible bubble burst for Rhode Island. Being in the business has helped me watch the home prices very carefully everyday in our local MLS program. As the year went on, the prices started falling, slowly at first, then a little more drastically. Homes began to wilt on the market for longer periods of time.

Photo from Birdsandbeacons by Ann Searle
It took some getting used to after the amazing growth that was prevalent throughout Rhode Island in the past few years! Sellers were horrified that homes they had purchased in the last two years were now worth less than what they originally paid for them! Foreclosures were starting to creep up. Where two years ago, the foreclosure page in the Providence Journal was not completely full, now they were up to four complete pages! The boom was over!
What does this mean to you.
Selling right now is probably not your best move. If you can possibly hold off for awhile you would benefit. If you have to you can always rent out your property to cover your payments, watch the market and decide when it will be a better time to sell.
If you are considering buying, now that is another matter altogether. Now is the time! If you have been debating with yourself and feeling like the surplus of homes on the market means that escalating home prices have stopped, then you are right! They have. Not only do you have a much wider choice in homes, locations and anemities, but you can buy that fixer upper you have been hankering for. Get out of that rental apartment.

Rehab for Sale Investors and Contractors!!!

2006-12-26T16:17:00.000-05:00

You cannot find a lower priced home for sale in Warwick! Home needs total rehab or demolition. (check zoning)

Drive by 82 Fuller Street, Warwick RI and contact me at KarenHurst@rihome.net.

***All offers must be accompanied by proof of cash or proof of Direct Lender. Home is bank owned. AS IS.

Nemed on Active Rain!

2006-12-17T19:04:00.000-05:00

Okay, I've been nemed along with a couple of thousand others here at Active Rain.
Actually I have been nemed twice so I guess that means I need to tell 10 things about myself that no one here knows.

The picture is of my Son and his wife and my two grandchildren...
I have two grandchildren
I have two sons
I have two step daughters
I have an aka, which I will not disclose here
I had three brothers, one passed away. His birthday was December 26th
I am an artist, studied under Herman Itchkavitch and Majored in Fine Arts in college
I have been a waitress, bartender and Office Manager twice
You all know I am a Great Realtor in Rhode Island!!!!
I am a very private person and that is all you're getting:)

Random Acts of Kindness....You Get More than you Give.

2006-12-13T19:39:00.000-05:00

The other day I was reading a blog on Active Rain about giving and it inspired this blog because it has occurred to me that the everyday things we can do for people that they do not expect are not only a surprise for them but a grateful feeling for ourselves.
I am talking about little things and things that do not necessarily require lots of money. I have always felt that I could not do much for people because I did not have a lot of money. This is not a good way to think because there are millions of things we can do to make someone else's life nicer everyday without spending money!
There was a time in my life when I had two small children, was recently divorced without any cash and it was a week before Christmas. I met this older guy and he was asking me what my children wanted for Christmas and was I getting it for them. Well, I didn't lie about it, but I didn't really tell him the whole scope of what was happening in my life. I guess it must have shown though, because I was extremely upset about my children not getting Christmas presents! To make a long story short, he handed me a couple of bills and said. "Listen, I have the money and I would like to give this to you for your children. I have a big family and we all have what we need, so please let me do this for Christmas." Normally I would never have accepted anything from a stranger, but these were my kids we were talking about! So I thanked him and left, with the money in my hand all the way home. I couldn't look at it until I got home for some reason. When I did look, I saw it was $200. which at that time was a large amount! I was able to buy both my boys presents to open on Christmas morning.
At that time, I vowed to return that favor, to other people as they came into my life whenever I could. We never know what something like that means to someone who doesn't have it! I will always remember that man, his generosity and ability to make me feel like he was doing something for himself so as not to hurt my pride.
He was doing something for himself! Not only me. It took me years to realize it and get to the point where I could actually start doing the same thing.
The moral here is that no matter how small something seems to you, to the receiver its large! And theres nothing like the feeling of giving to someone who needs it.

***I wrote this post and had it in my word program. Then I read Marianna Wagner's post today and decided to post this also.
For the Holidays, a Random Act of Kindness can make all the difference!

Happy Closing this week

2006-12-10T20:08:00.000-05:00

This week I had a real nice closing where everyone ended up happy. I was the Buyer Agent in the transaction. The buyer, who was a first time buyer, ended up in a multi-family home with as little as $1500! As I was sitting next to my buyer and reveling in his/her happiness, it occurred to me that there are so many people out there that have no idea of the amount and type of programs that are available to them if they only ask.
I as a Realtor, tend to notice advertisements about these programs. I also spend a lot of time researching for them so I am able to help whomever calls me. However, the general public really does not know where to go, who to contact or what the programs even do! I just hope when you are looking for a home, you remember to contact me and get an amazing deal. I will show you how to do it. Back to my buyer, when he first called me he said "I need you to show me the way". I did and he is now in his new home and not paying rent anymore.

Oakland Beach Warwick, Rhode Island

2006-11-03T23:02:00.000-05:00

Oakland Beach Warwick Rhode Island a beachfront community

Photo credit to http://www.rigreenways.com/
Oakland Beach

This is the first in a series that I promised to do on all the little villages in Warwick, Rhode Island

I am going to start with Oakland Beach.

First, Oakland Beach has one of the lowest elevations in Rhode Island.
Because of this, it was almost wiped out completely during the hurricane of "38.
Oakland Beach used to be a great amusement park up until then.

40-50 years ago, Oakland Beach was the place to go for a summer vacation.

People from Providence and surrounding areas would rent homes there and enjoy the beaches and views, along with the boardwalklike main road consisting of restaurants, complete with a Merry-go-Round. I remember staying there with my aunt and uncle when I was young and those memories are pleasurable.

After awhile, Oakland Beach started to degenerate. A lot of the homes there are and were quite small. Most of them had been beach houses, now converted to year round homes. Some were badly neglected and the neighborhood values deteriorated, attracting a more transient type of person who was not interested in keeping up their home.

Now, after the increase in Real Estate values in Rhode Island, especially in waterfront communities, Oakland Beach has started to awaken from its slumber.
Take a drive through and see the new construction, homes being redone, smaller homes being torn down. Yes, there are still some of the neglected homes, but the trend is definitely on the upswing.

I predict Oakland Beach to be a good investment for anyone who is considering beach property and cannot afford some of the higher priced areas in Rhode Island.

To learn more about Oakland Beach or to search for properties there email me at Karen Hurst

Exotic Mortgages

2006-10-22T14:38:00.000-04:00

For all you homebuyers that are "stuck" in a poor mortgage situation and for all new homebuyers, you need to read this post by Jeff Belonger, posted to the Active Rain Real Estate Blogging site this am.
http://activerain.com/blogsview/16063/Rules-that-aim-to

NAR reports Pending Sales increasing last quarter!

2006-10-06T14:21:00.000-04:00

October 2, 2006
Pending Home Sales Index Rises 4.3%

Pending home sales have increased, showing that the housing market continues to stabilize, according to the NATIONAL ASSOCIATION OF REALTORS®. NAR’s Pending Home Sales Index, based on contracts signed in August, rose 4.3 percent to a level of 110.1 from a reading of 105.6 in July, but is 14.1 percent lower than August 2005.David Lereah, NAR’s chief economist, says the higher index reading is a hopeful sign for the real estate market. “Our sense is that home sales may have reached a low in August,” he says. “The Pending Home Sales Index shows home sales should be fairly stable over the next two months, although a minor decline is possible. Prices to Rise at Slower Pace in '07"With fewer new listings coming on the market, we should be able to draw down the inventory supply early next year to the point where home prices will rise, but at a slower pace than historic norms,” Lereah adds.The index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed and the transaction has not closed, but the sale usually is finalized within one or two months of signing.An index of 100 is equal to the average level of contract activity during 2001, the first year to be examined, and was the first of five consecutive record years for existing-home sales. There is a closer relationship between annual changes in the index and actual market performance than with month-to-month comparisons; analysis shows a strong parallel between changes in the index from a year ago and the actual pace of home sales in coming months.

Biggest Increase Is in the West Regionally, the index reading for the West rose 9.2 percent in August to 112.7 but was 16.9 percent below August 2005.

The index in the South increased 4 percent to 126.8 in August but was 9.4 percent below a year ago.

In the Northeast, the index rose 3.6 percent in August to 95.4 but was 12.4 percent below August 2005.

The index in the Midwest was unchanged at 93.8 in August and was 20.4 percent lower than a year ago.

Mortgage Market Week of September 18, 2006

2006-09-20T23:31:00.000-04:00

This is a blog post from Ken Allen on the Activerain site. I think its very informative.
Mortgage Market Update for the week of September 18th, 2006

DEBT FREE

2006-09-03T16:51:00.000-04:00

My son has been addling me for a month or two about listening to the Dave Ramsey show. He said that the new sign of wealth was a paid-for home not a BMW. Since I really wanted a Mercedes, I did not get to the show for awhile, until today. You can listen to archives of what Dave Ramsey has to say here www.daveramsey.com and decide for yourself. The first one I listened to, a couple called in to say they paid off $64,000. in debt in 18 months! Absolutely unbelievable. If you want to be a homeowner, you definitely need to take this mans advice. Even if you don't want to be a homeowner, why be in debt? All it takes is one-mindeness and concentration. You too can do it!

Rhode Island Coastal Property

2006-09-02T20:09:00.000-04:00

Where can you find great beaches? Seaside cottages, smell of the ocean, lots of Lighthouses, old fashioned Victorians, charming cottages, castles? Why Rhode Island of course! The Ocean State. This is the first blog in a series on Rhode Island started on Labor Day Weekend. I will talk about Sailing on the Narragansett Bay to Block Island or to Marthas' Vineyard and Nantucket. (and Prudence and Patience Islands for RI boaters)
Keep tuned!