No two buyers have the same needs.  One might be all about the views the house has.  Others will gladly sacrifice the house in lieu of access to schools.  One of the most common search criteria in a home search is schools.  Similar to views, schools aren’t set in stone; boundaries can change, once respected schools can dip (or vice versa) or even be shut down.

Yesterday was a big day for Portland schools.  Portland Public Schools released their 2009 Report on Schools, the Oregonian reported on it, and Marysville Elementary School caught fire.   Ask 10 people their opinion of “what is the best school” and you’ll get 10 different answers.  As the Oregonian story reports, the metrics have changed so some schools have moved from one ranking category to another.  We have one client that uses www.greatschools.net as their measure of areas schools.

Why do today what you can put off and pay more for later?  Non-problems become small problems and small problems can become really expensive problems, eventually leading to the sort of housing situation to the left.

Bob Vila has a good checklist of home maintenance items that should be checked bi-annually.

The National Association of Realtors published a chart showing how the Homebuyer Tax Credit changes when President Obama signs the legislation into law; expected to happen today.

One item that I question on the chart is the need to sell your home if you qualify for the $6500.  I don’t see that in the text of the legislation.  I do see:

EXCEPTION FOR LONG-TIME RESIDENTS OF SAME PRINCIPAL RESIDENCE- In the case of an individual (and, if married, such individual’s spouse) who has owned and used the same residence as such individual’s principal residence for any 5-consecutive-year period during the 8-year period ending on the date of the purchase of a subsequent principal residence, such individual shall be treated as a first-time homebuyer for purposes of this section with respect to the purchase of such subsequent residence.’

I was transferred to voice mail when I called NAR to verify so will update as I know more.  I may have missed something but it is worth finding out!

It’s no longer the $8000 First Time Homebuyer Credit.  It’s now the $8000 First Time Homebuyer Credit or $6500 if You Have Lived in Your Home for Five of The Last Eight Years and Buy a New Home Credit (if you qualify).  The Senate voted last night and the House voted today (403-12) on H.R.3548 so the bill moves to President Obama for his signature; possibly tomorrow.  Sections 11 and 12 of the bill specifically deal with The Credit.

The revised credit will take effect on December 1st and is not retroactive.  Changes include raising the maximum income for qualified couples to $225,000.  The $6500 credit is only valid for primary residences.

UPI.com has a good article here, Examiner.com here, and subprime blogger here regarding the passage of the revised credit and additional information.

On October 22, the Treasury Inspector General for Tax Administration released a report that includes:

As a result of the IRS’s inaction, TIGTA’s report found that 19,351 taxpayers claimed $139.4 million in credits for homes they had not yet purchased but would allegedly purchase in the future. In addition, 70,005 taxpayers claimed more than $479 million in credits, despite indications that they were not first-time homebuyers. TIGTA also identified 582 taxpayers under 18 years of age who claimed almost $4 million in First-Time Homebuyer Credits. The youngest taxpayers receiving the Credit were 4 years old. (emphasis added)

The new law makes provisions to go after those fraudulently claiming the credit.

According to Real Estate Economy Watch, the first time homebuyer credit extension is close to a done deal.

After two weeks of delay, the Senate last night cleared the way to pass a seven month extension and expansion of the tax credit for homebuyers.  By an 85 to 2 roll call vote, the Senate voted to cut off debate on a package of measures that includes the homebuyer credit, making it virtually certain that the legislation will reach President Obama for his signature this week.

As a Realtor, it’s good news for our industry but I don’t think that it would have been the end of the world, or will be in April, when the tax credit expires.  It will be interesting to see how many people are able to take advantage  of the $6500 credit for existing homeowners.  I haven’t found the exact text of what the senate is going to vote on but heard today that the requirement is that it has been your home for five of the last eight years.

Accredited Marketing Partners has launched a new promotion for the South Waterfront’s Atwater Place Condominiums.  “Auction Prices” through November 15th according to the commercial on KGW.  The new website is www.atwaterplacesaleevent.com.  We commented last night driving home on I-5 that there were noticeably more lights on in the South Waterfront than we’ve grown used to seeing.

Just reported on MSNBC “Senators agree to extend homebuyer tax credit”

Senators agreed to extend the existing tax credit for first-time homebuyers 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, D-Nev.

The bill, in which the Credit is a part of, could come up to vote as soon as Thursday.

There are lots of different ideas about how Congress is going to address the First Time Home Buyer Credit which ends at the end of November.  The only thing that is clear is that the topic is being actively discussed in Congress .  On Monday I wrote about the Bloomberg article that reports the Credit phasing out though next year. That story is titled “Nelson Says Senate to Extend, Reduce Homebuyer Credit (Update3)“ Posted October 26, 2009 17:58 EDT.

There were more articles yesterday.  The National Association of Realtors quotes a Bloomberg story today that is also cited on Calculated Risk and OregonLive’s Front Porch.  That story is “Senate Close to Deal Replacing Homebuyer Tax Credit (Update2)” posted October 27, 2009 18:31 EDT and includes this:

The deal would reduce the size of the tax credit to 10 percent of the sale’s price, capped at $7,290, the people said. The credit would be available on home purchases that are under contract by April 30, and borrowers would have 60 days more to close the sale. The existing credit is due to end Nov. 30.

Reuters also has a story today (posted 10/28 4:38 eastern).  “Senators eye extending home credit to end of April“.  In part:

Under an agreement reached by key senators, the tax credit would be extended through the end of April and be expanded to cover repeat buyers who have been in their homes at least five years, sources familiar with the plan said.

First-time buyers would continue to get an $8,000 credit, while repeat buyers of primary residences would be eligible for a credit of $6,500, the sources said.

They said the credit would be available for individuals making up to $125,000 a year and couples earning up to $225,000 per year.

Case Shiller for August reports that the Portland housing market is up from July but not by much and behind the national average.  Portland increased from was up .40 points to 150.4.  The national 20 city index was up 2.3 points.

The Portland real estate market has risen 3.61 points since its low in April.

More later.

Time is running out for the First Time Buyer Credit but Congress seems to be moving towards an extension. The possibility of writing an offer and closing on a short sale property before the deadline passed weeks ago.  The comfort zone for closing a “regular” sale has passed and gotten to the risk of not closing by December 1.  Not impossible, still doable but don’t cash that check ’til you qualify.

Bloomberg.com reports today:

Oct. 26 (Bloomberg) — Senate leaders are negotiating to extend and gradually reduce an $8,000 tax credit for first-time homebuyers through 2010, Senator Bill Nelson of Florida said.

“We should be able to extend that later this week,” Nelson, a Democrat, told reporters traveling today with President Barack Obama on Air Force One to a speech in Jacksonville, Florida.

Senate Majority Leader Harry Reid of Nevada and Senate Finance Committee Chairman Max Baucus of Montana, both Democrats, may seek to add the homebuyers extension to legislation extending unemployment benefits that may be debated as early as this week, according to Regan Lachapelle, an aide to Reid.

Lawmakers are under pressure from real estate agents, mortgage brokers and homebuilders to extend the $8,000 credit before it expires Nov. 30.

Baucus and Reid made a proposal last week to Senate Republicans that would extend the homebuyer credit through 2010, Lachapelle said. First-time homebuyers who close before April 1 would get the full $8,000, and the credit’s value would be reduced by $2,000 in each successive quarter until expiring at the end of the year.

See for complete article.

Case Shiller Index released tomorrow.