This scam is going on right here in Topeka. Please beware of this tactic if you are planning on renting a home. This is a great article and explains exactly what to watch for. If you questions whether a deal maybe too good to be true, be sure to consult with your REALTOR for advice.

Source – WyomingNews.com
By Baylie Evans
bevans@wyomingnews.com

CHEYENNE — A real-estate scam is causing frustrations for local home sellers and renters.

Employees at Assist 2 Sell, a real-estate company here, said their clients have been affected, and they suspect that clients at other companies have been as well.

The scam works like this: A real-estate company puts listings for homes for sale on a Web site that is viewable by the public.

Then someone who is probably living overseas somewhere looks up the houses and finds the names of the homeowners using public information.

That person then posts a “for rent” listing on Craigslist, a classifieds Web site, for that address, using the real owner’s name, at a very low rent.

When potential renters contact the scammer about renting the home, the scammer has them fill out an application. The person then “approves” the application and asks the renters to send the first month’s rent and a security deposit in order to receive the keys.

This is all done by e-mail, and without the renters having seen the inside of the home, just photos from the real-estate site.

Of course, when the renters send the money, they never receive a key.

Jennifer Trainer, a real-estate broker with Assist 2 Sell, said people have been sending as much as $1,500 to this person.

“People have been falling for it like crazy,” she said.

And it seems to be getting worse, added Wendy Miller, a broker’s assistant at Assist 2 Sell.

“It seems like every week there’s another one of the houses on Craigslist,” she said.

Often, the scammer tells the potential renters a sob story.

In one e-mail correspondence, the scammer identifies himself as a pastor working as a missionary overseas.

In another, he says he and his wife moved to west Africa after winning a bid for petroleum land there.

And in another, he says his telecommunication company has moved him to England for two or three years.

But in all of them, he pleads for the renters to take good care of his home and apologizes that he can’t be there to show them the inside. And then he asks them to send money for rent and the security deposit.

In one correspondence obtained by the WTE, the renter tells the scammer she is desperate to find a home for her family, and she jumps at what seems like a perfect opportunity — though the correspondence ends when she asks to speak to the person over the phone.

And the problems aren’t only felt by potential renters. The real owners of the homes being used in the scam also are affected.

Claudia Rennekamp is trying to sell her home in Cheyenne and has been subjected to strangers knocking on her door or constantly driving by to look at the house. She has to tell them the house is not for rent and that they are the victims of a scam.

“It’s scary,” she said.

There’s not much anyone can do to stop the scam, since the person is overseas and no one knows a real name or address.

“Our best bet is just to avoid becoming a victim,” Lt. Mark Munari with the Cheyenne Police Department said. “Folks need to be very cautious about Internet postings.”

Legitimate business is not done over e-mail, and people need to be aware that these types of scams are out there.

Any information about the situation could help police, he added, but it’s impossible to file charges against someone living overseas.

The old adage holds true, he said: “If one of these things sounds too good to be true, it probably is.”

The Internal Revenue Service has clarified which documentation taxpayers need to submit to claim the first-time and move-up homebuyer tax credit.

While the IRS is still requiring the filing of Form 5405, it is not demanding that all parties’ signatures be on the HUD-1 settlement document in areas where requiring both the buyer and the seller to sign the document isn’t common.

The IRS clarification says: “In areas where signatures are not required on the settlement document, the IRS has clarified that it will accept a settlement statement if it is completed and valid according to local law. … The IRS encourages those buyers to sign the settlement statement prior to attaching it to the tax return.”

For repeat buyers, the IRS is seeking documentation that home buyers have lived in the previous property for a consecutive five of the past eight years. Proof can include property tax records, home owner insurance records, or mortgage interest statements.

Source: Washington Post (02/20/2010)

For most couples, buying a home is the most significant purchase they will ever make together.  While the prospect of owning a home is exciting, it can often seem overwhelming, especially for those who are new to the real estate process.   From selecting a neighborhood to deciding how to use a spare room, navigating the world of homeownership together requires some extra work.

For those couples looking to purchase a home, here are seven tips that will ensure a “harmonious house hunt” without rocking the relationship:

Get pre-approved for a loan. There are few things worse than finding the perfect home, only to find out that it costs more than one can afford. Before beginning the house hunt, I recommend getting pre-approved for a loan. A pre-approval will let couples know where they fall financially while informing the mortgage company that they are ready to buy. Additionally, being pre-approved for a loan can help speed up the closing process once an offer has been accepted.

Set a budget. Beyond income and savings, there are a number of other financial elements to consider before setting a price range for the new home. Once a couple has decided on a location, they should consider its proximity to their family, jobs and schools for children and gauge travel costs. The next step is to add up monthly bills, including the couple’s car payments, phone bills, insurance, groceries, and credit card payments. This total estimated cost of living should be factored into the couple’s overall budget.

Get on the same page. Whether it is a quiet neighborhood or a two-car garage, everyone has their own “must haves” when it comes to the home of their dreams. For a couple looking for a home to share, it is important to discuss each of their essentials before beginning the search. Keep in mind that agreeing on all of the features of a future home will likely be impossible, so be prepared to compromise. Once the list of “must haves” is finalized, contact a real estate professional who can determine if the expectations are realistic given the homes currently on the market.

Allocate additional funds. The down payment on a new home is just one of the significant financial aspects of a move.  Even after both people’s belongings are combined there will likely still be a need to purchase furniture and other items like a washer and dryer which will require additional budget. The last thing a couple will want to do is start out their life together with nothing in the bank!

Be patient. A recent Coldwell Banker Real Estate survey found that women are likely to make up their minds faster than men. Almost 70 percent of women surveyed decided the day they walked into the house that it was right for them, while 32 percent of men needed two or more visits. It will likely take multiple trips to the home before both members of the couple decide it is “the one.” If a spouse needs more time, be patient and try not to pressure them.

Take inventory of everyone’s belongings. Before moving into a new home together, each person should make a list of the furniture they plan to keep and compare it with their partner’s. There may not be a need (or a place) for three televisions and two kitchen tables in the new house. Consider selling unwanted pieces of furniture online, or holding a garage sale. The money made is sure to be put to good use on purchases for the new home.

Sign a contract. For a couple who has yet to walk down the aisle, it is important to contact an attorney before closing on a home. A contract should be drawn up outlining who is responsible for what expenses and how assets will be divided in the event of a split.

DO YOU QUALIFY?

• Your HVAC system is at least 10 years old.
• You install a qualifying replacement in 2009 or 2010.
• You haven’t maxed out the energy tax credit on other upgrades.

The federal energy tax credit is based on 30% of the cost of an eligible HVAC system, including installation charges.

Replacing an aging heating and cooling system can save you money over time. According to Energy Star, a federal program that promotes energy efficiency, about half of what the average household spends on energy bills goes toward heating and cooling.

Upgrading your heating, ventilation, and air conditioning (HVAC) to energy-efficient units can cut utility costs by about 20%, or $200 annually, on average. A tax credit for heating and cooling systems can make the project more affordable.

This type of home improvement doesn’t come cheap. Prices vary widely based on where you live, unit specifications, and the condition of your home, but figure a high-efficiency furnace will start at around $3,500, including installation, estimates Corbett Lunsford, executive director of Chicago-based Green Dream Group. A standard furnace may cost $2,400. To help offset the price difference, the IRS allows a tax credit worth up to $1,500 on eligible HVAC systems put into service during 2009 or 2010. Consult a tax adviser.

Pay attention to efficiency ratings
To earn an Energy Star rating, furnaces must be more efficient than standard units, with annual fuel utilization efficiency ratings, or AFUE, of 85% for oil furnaces and 90% for gas furnaces. The Energy Star seal of approval alone isn’t enough to garner the federal tax credit. Credit-eligible gas furnaces (either natural gas or propane) must have AFUE ratings of 95% or greater; oil furnaces, 90%. A boiler must have an AFUE of 90%.

Heating by burning a fuel is inherently inefficient. Simply put, high-efficiency furnaces have components that are better designed to get more heat out of the combustion process, Lunsford says. You’ll need to hire an HVAC contractor to calculate the size of the equipment needed for your home. Beware bidders who take a one-size-furnace-fits-all approach. Air source heat pumps and advanced main circulating fans can also qualify for the $1,500 tax credit.

Technically, a homeowner could replace either a furnace or a central air-conditioning unit and be eligible for the tax credit. Practically speaking, you probably will have to replace both for the A/C to qualify, says Enesta Jones, a spokeswoman for the U.S. Environmental Protection Agency. Most homes have split systems made up of an outdoor condenser and compressor that are connected to an indoor air handler that’s part of the furnace. Split systems must have a SEER rating of at least 16 and an EER rating of at least 13. The higher the rating, the more energy efficient the unit. A package A/C system, which houses all of its components outdoors, requires lower ratings.

HVAC’s value goes beyond savings
It typically takes about a decade’s worth of energy savings to recoup the investment in a new HVAC system, Lunsford says, though that time frame can vary greatly depending on how much fuel prices fluctuate. Less apparent in dollar terms are increasing the comfort level in your home and lowering your household’s drain on non-renewable fossil fuels. Then there’s the effect on your home’s value when it comes time to sell.

You’re going to enhance a home’s salability by moving to a more energy-efficient heating and cooling system, says Frank Lesh, president of Home Sweet Home Inspection Co. in Indian Head Park, Ill. That doesn’t mean adding a $5,000 furnace will add $5,000 to the sale price. Rather, potential buyers are less likely to push for repairs or negotiate a credit if the HVAC is in good shape. Evaluate systems older than 10 years for possible replacement.

But before you do, conduct a wider energy audit of your home. Lunsford, also manager of consumer education for the U.S. Green Building Council’s Chicago Chapter, says he rarely recommends replacing a furnace as the first step in making a home more energy efficient. Instead, start by sealing it against air leaks. Do-it-yourself caulking and weather-stripping help, as does adding insulation in the attic. Professional air sealing, which is more effective, can cost as much as $5,000 for a large house, he says. The payoff: Energy costs should go down, and you might be able to get by with a smaller HVAC system.

Getting tax credit for your upgrades
The federal energy tax credit is based on 30% of the cost of an eligible HVAC system. Installation charges count too. A $5,000 bill would max out the credit. You’ll need to owe more in taxes than you’re trying to claim in credits to qualify. Use IRS Form 5695. Save receipts for your records, as well as manufacturers’ certification statements. If part of a new HVAC system qualifies for the credit but another part doesn’t, ask the contractor to itemize the receipt.

The tax credit is aggregated for all qualifying energy upgrades—insulation, roofs, windows, and so on—so you can’t claim separate $1,500 credits for each project. Only improvements to your existing primary residence count. New homes and second homes are excluded.

This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.

Barbara Corcoran, a consultant for NBC’s  Today show, named Topeka as the number three city in the country to buy a home, right behind South Bend, Ind. and Akron, Ohio.  Locations were picked based on local real estate markets, size and value of houses, job growth and quality of education.

“Home prices haven’t gone down by more than 1 percent,” Corcoran said of Topeka. “Unemployment is only 6 percent. And it’s a great family area.”

Top 10 top cities to get the most bang for your buck:

1. South Bend, Ind.
2. Akron, Ohio.
3. Topeka, Kan.
4. New Haven Conn.
5. Tuscon, Ariz.
6. Minneapolis.
7. Portland, Maine.
8. Miami.
9. Kingston, NY.
10. Trenton, NJ.

See the video here:

Visit msnbc.com for breaking news, world news, and news about the economy

83 Percent of Current Homeowners Surveyed Say They Would Spend Tax Credit on Repaying Existing Debts, Home Improvements, Savings/Investments and Household Expenses

Coldwell Banker Real Estate LLC today announced the findings from a new survey that looked at how the recently expanded federal homebuyer tax credit, which opened up the credit to existing homeowners, might impact the economy.  Of the more than 1,000 homeowners surveyed, 83 percent responded that if they were to purchase a home and qualify for the tax credit, they would engage in “smart spending” or put the money toward paying off existing debts, home improvements, savings/investments, or everyday household expenses.  Only 6 percent of respondents indicated that they would spend the money on what are commonly referred to as luxury items such as a vacation or a shopping spree.

According to the survey, the top way homeowners would spend their $6,500 tax credit in a “smart” way would be to pay off debts (34 percent), followed closely by making home improvements (29 percent) and putting it into savings and investments (28 percent).

In addition, Coldwell Banker Real Estate found that 20 percent of homeowners indicated they were more likely to consider purchasing a home than they were six months ago, after learning about the $6,500 federal tax credit. The tax credit, which previously only was for first-time homebuyers, is now available to existing homeowners who sign a binding contract before April 30, 2010 and close on the purchase of a home before June 30, 2010. To learn more about the details of the expanded homebuyer tax credit, go to www.cbkansas.com.

“I congratulate Congress and the Administration on the passage of the ‘The Worker, Homeownership, and Business Assistance Act of 2009’,” said Bryon Schlosser, President of Coldwell Banker Griffith & Blair American Home    “The National Association of Realtors recently reported that 47 percent of 2009 home sales were to first-time homebuyers, so clearly the initial tax credit worked.  “Our local market data coupled with the findings from our survey offer(s) positive indicators that there are more existing homeowners considering a home purchase today than there were six months ago, and the majority of respondents say they would engage in ‘smart spending’ that would directly benefit the U.S. economy.”

The holiday season from November through January is often considered the worst time to put a home on the market. While the thought of selling your home during the winter months may dampen your holiday spirit, the season does have its advantages: holiday buyers tend to be more serious, and competition is less fierce with fewer homes being actively marketed. First, decide if you really need to sell. Once you’ve committed to the challenge, don your gay apparel and follow these tips from FrontDoor.com.

1. Deck the halls, but don’t go overboard. Homes often look their best during the holidays, but sellers should be careful not to overdo it on the decor. Adornments that are too large or too many can crowd your home and distract buyers. Also, avoid offending buyers by opting for general fall and winter decorations rather than items with religious themes.

2. Hire a reliable real estate agent. That means someone who will work hard for you and won’t disappear during Thanksgiving, Christmas or New Year’s. Ask your friends……

READ MORE HERE!

Buying a first home is one of the most important decisions a person can make, but it can be a complex process. Coldwell Banker Griffith & Blair American Home in Topeka, Kansas offers tips for first-time homebuyers with a checklist of the 10 essential steps to help make the process smooth and successful.

Step #1—Ask Your Lender About Available Mortgage Programs: An experienced mortgage company should be able to work with you one-on-one to determine exactly which mortgage programs will meet your individual needs and what you can qualify for based on your personal information. Applicants with higher credit ratings and/or higher levels of financial reserves generally receive more competitive mortgage rates. But with hundreds of available mortgage programs, there is usually one to meet the needs of almost any homebuyer. For those with excellent credit, there is even a way to get a mortgage with 0% down.

Step #2—Research the Terms of the Mortgage: Different mortgage lenders have varying price structures that can affect the amount that you pay for your home. An annual percentage rate (APR) includes the actual interest rate on the loan, as well as certain fees and costs associated with the loan. Because a customer may be paying points and other closing costs, the APR disclosed may appear to be higher than the actual interest rate quoted for the loan. Not all lenders calculate APR identically; however, it does give customers a relatively fair method of comparing price on their potential loans.

Step #3—Get a Pre-Qualified Loan Commitment: Even before the house hunting begins, homebuyers need to determine how much they can afford. Mortgage companies or other lending institutions provide pre-qualified loan commitments. Sellers often don’t take an offer seriously unless the prospective first-time buyer has some assurance of creditworthiness from a mortgage company.  A pre-approval with a reputable lending institution means more because a full credit report is ordered on the customer so that a true loan decision can be made the same day a customer applies. Shopping for a home with a pre-approved mortgage enables a customer to negotiate as a cash buyer and submit an offer on a home with confidence that the mortgage will be issued and the sale will be completed.

Step #4—Do Your “Homework”: Be sure to acquire home buying information from sites such as coldwellbanker.com to check for listings, neighborhood information, current mortgage information and home ownership services. The right amount of research will help you to better understand the marketplace and homes available in your price range when you’re ready to work with a real estate professional.

Step #5—Make a Checklist: To help make the home buying process a little easier, homebuyers should create a checklist of the important features they want in a home. Location and the number of bedrooms and bathrooms are usually important. Other important questions to answer: What will the commute to work be like? Are there shopping centers, parks, and schools located near the home?

Step #6—Find a Buyer’s Agent: A buyer’s agent represents the buyer’s interests and helps identify homes that are for sale and in the right price range. The agent also can help with such tasks as writing contracts, negotiating the asking price, and closing the purchase.

Step #7—Make an Offer: Once you find the right house, make an offer. Make sure that your offer is contingent on two items: 1) You’re able to obtain adequate financing (if you haven’t done so already), and 2) you can pull out if the property doesn’t pass the home inspection, and the owner can’t come to terms about how to fix the problem. Be prepared for counter-offers from other buyers and some negotiation with the seller. Make an earnest money deposit, which is a check that you’ll give your agent to indicate that you’re serious about buying the house. The check will apply toward the sales price if the deal goes through; if not, you get it back. You should also set a time limit with your agent that the offer you’ve made is good for three days. If an offer is accepted, it goes to the contract phase.

Step #8—Hire A Home Inspector: Making an offer contingent on an inspection by a registered home inspector can save thousands of dollars by avoiding unseen problems. Inspectors will check the house for any structural damage. In the contract with the seller, it should state any necessary repairs that must be made before closing on the house. Prior to closing, walk through the house and check that such repairs have been completed.

Step #9—Buy Homeowners Insurance: Lenders require homeowners insurance to protect the new homebuyer’s interests as well as their own. There are many providers so shop around for the best rates.

Step #10—The Closing: This is where the seller and buyer sign settlement-closing papers to transfer the ownership of the home and all transactions are finalized. Congratulations, you achieved the American dream and you are now a homeowner!

New Legislation Extends the Federal Tax Credit for First-Time Home Buyers and Expands the Incentive to Current Homeowners

(TOPEKA, KS) – For many Americans, home ownership is a key step towards achieving the American Dream.  Bryon Schlosser, CEO of Coldwell Banker Griffith & Blair American Home, said, “It’s a great time to be buying or selling a home in Topeka.  Prices and inventories are stable, mortgage rates are at historic lows, and for the next few months we have new government incentives.”

On November 6, 2009, President Obama signed “The Worker, Homeownership, and Business Assistance Act of 2009,” bringing that dream one step closer to reality.

To help consumers who are considering purchasing a primary residence, Coldwell Banker Griffith & Blair American Home has summarized the details of this new legislation and what it means for those thinking about entering the market:

• Eligibility: The tax credit is now available for first-time home buyers and repeat homeowners. A first-time home buyer is defined as an individual 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.

A repeat homeowner is defined as someone who has owned and resided in a home for at least five consecutive years within the last eight.

• The federal tax credit amounts to 10 percent of the cost of the home, up to a maximum credit of $8,000 for first-time homebuyers and $6,500 for current homeowners.
  
  • e.g., If a home costs $60,000, the allowable credit for both a first-time homebuyer and a current homeowner would be $6,000. If a home costs between $80,000 and $800,000, then the allowable credit for a first-time homebuyer would be $8,000 and for a current homeowner, $6,500.

• Individuals whose Form 1040 filing status is “single” are eligible for the tax credit if their income is no more than $125,000. Individuals who file a joint return are eligible if they have no more than $225,000 in income.

Single taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.

• The federal income credit can be claimed on one’s individual or joint tax return for the purchase of any single-family home (newly-constructed or resale, single-family detached, townhomes or condominiums) between the dates of November 7, 2009 and April 30, 2010. Home purchases subject to a binding sales contract signed on or before April 30, 2010 will also qualify for the tax credit provided closing occurs on or before to June 30, 2010.
• The tax credit is refundable. A refundable credit means that if the amount of income taxes a home buyer owes is less than the credit amount he / she qualifies for, the government will send a check for the difference.  In essence, the credit is a dollar-for-dollar reduction in what taxpayers owe for the calendar year they purchase their home but the taxpayer may also amend the prior year’s return to claim the credit more quickly.
  • e.g., A first-time home buyer who qualifies for the full $8,000 tax credit and owes $5,000 in federal income taxes would owe nothing to the IRS and receive a $3,000 payment from the government.  A repeat buyer who qualifies for the full $6,500 tax credit and owes $5,000 would pay nothing to the IRS and receive $1,500 back from the government. If the repeat buyer is due to get a $1,000 refund, he / she would get $7,500 ($1,000 plus the $6,500 move-up buyer tax credit).

The tax credit is a true credit. It does not have to be repaid unless the homeowner sells or stops using the home as their principal residence within three years after the purchase.   In that case, the full credit amount will be recouped on the sale.  There are exceptions in the event of the homeowner’s death or if a sale results in a loss.

For further understanding of how the extended tax credit differs from the previous version and how it can benefit first-time and repeat homebuyers additional information can be found on CBKansas.com.

This is based on information available as of November 2009 and is not meant to be tax or legal advice.  As with any tax law change, consumers should check with a tax advisor regarding availability, eligibility and possible timing of any tax credit.

Now that we have seen our first glimpse of snow and we’re pulling out the coats from the back of the closet, it’s time to turn our thoughts to hibernating season… better known as winter.

With this inevitable change of the seasons the biggest question REALTORS get from sellers is;

“Should we take our home off the market for the holidays?”

I understand that no one wants to be disturbed during their Thanksgiving dinner or their Holiday celebrations. No one wants to get a call that a buyer wants to see their home while they’re decorating the Christmas tree or wrapping presents. BUT, there are a lot of positive reasons to keep your house on the market without interruption for the next few months. Especially this year with the way the Topeka Real Estate Market is going.

Everyone wants to enjoy the holidays. That’s why potential buyers who are out looking for homes during November, December and January are SERIOUS buyers.   These buyers aren’t just out looking at house to get decorating ideas or to pass the time, they have a need for a new home and will interrupt their busy holiday schedules to look at the homes that appeal most to them. So, why would you pull your house off the market when a serious buyer may appear on the horizon?

#4  Homes show better during the holidays

Most people beautifully decorate their homes for the holidays, fires are going in the fireplace, seasonal music is on the stereo, and even bad landscaping doesn’t show when its all covered with snow. A potential buyer will see your home decorated and be able to visualize how their family could have their next holiday event in your home.

#3 January is the month for transfers

Traditionally, January is the month for corporations to hire new employees for new jobs.  Since most tranferees cannot wait until spring to buy a new home, they must sell their home now, and buy during the holidays.

#2  Less competition