Buying a new home and selling an existing home at the same time has its own set of difficulties. With planning, however, you can ensure everything goes smoothly.

Before putting your house on the market or committing to buying a new one, take a look at the prices of houses in the areas where you'll be both selling and buying. You'll need a realistic idea of how much similar houses are going for. Since you're both a buyer and a seller, you'll need to protect yourself in your weaker role while letting your stronger role take care of itself.

What if you're unable to perfectly time the sale of one house with the purchase of another? You may own no houses for a time, in which case you'll need money in the bank and a temporary place to live. Or, you may own two houses at once. That's why it's important to have a back-up plan. Here are some options to consider:

- Research short-term rental and storage                      options(family, friends, storage facilities,                    containers)

- A bridge financing is a loan for the down   payment on a new home backed by the equity   in your old house, typically at prime plus two   percentage points.

Another option is a no-ratio mortgage. This is usually made based on the buyer's down payment, credit scores or assets. Income isn't used or reported, and therefore will not exclude a borrower from receiving this mortgage. Rates are often higher but you can refinance later.

Alternatively, you may be able to draw on a home equity line of credit on your old home. However, you might pay a penalty fee if you sell the house within a year.

BUYING A SECOND HOME

Buying a second home isn't that much different from buying a first home. Affording it usually depends on your ability to qualify for a mortgage on the second home. Benefits include tax breaks, a getaway for the family on vacations or holidays, a future retirement home, renters making your mortgage payments for you, or just a smart investment.

Many people see buying a second home as an investment opportunity. You'll need to identify sources for your down payment, since you're not selling your current house and using the proceeds, and you'll need to expect a larger monthly obligation for housing expenses.

Keep in mind that if you declare it as a rental, your mortgage might be slightly higher. Work with your lender to create a customized loan program with the best combination of rate, points, and closing costs for your needs.

In the market for a new appliance? Then think Energy Star. Not only will you be helping the environment by purchasing an energy-efficient appliance, but you’ll be helping your budget as well, thanks to a $300 million “cash for appliances” program funded by the U.S. government and being rolled out state by state.  
 
The Energy Star program is a partnership between the U.S. Environmental Protection Agency and the U.S. Department of Energy. According to the Department of Energy, by using Energy Star, Americans saved enough energy in 2008 alone to avoid greenhouse gas emissions equivalent to those from 29 million cars--and also saved $19 billion on their utility bills.
 
The appliance rebate program differs in each state, but the basics are this: Buy an Energy Star appliance and receive a rebate of between $50 and $250. You must be replacing an existing appliance to qualify. Depending by state, the program covers boilers, air conditioners, washers, dishwashers, freezers, furnaces, heat pumps, refrigerators and water heaters. Each state runs its own program with funding from the Department of Energy. Dates and program details vary by state. Check out ww.EnergySavers.gov for details on your state’s program.
 
One piece of advice: Act quickly. The rebate program will continue only as long as each state has the funds to support it. Once the funds are exhausted, so is the rebate program

Here are 9 Ways to Spruce Up Your Home In Time for the Spring Selling Season - Without Spending a Lot of Money...

With all the news lately about snow, it's easy to forget that spring is just around the corner. And with spring comes the spring selling season, when home sales typically perk up. This year, there's lots of good news for those selling their homes. "This spring should be a breath of fresh air for beleaguered sellers," says Mike Larson of Weiss Research. "The supply of homes for sale is falling. Affordability is rising thanks to declining home prices. And the extension of the homebuyer tax credit is putting a bit more wind in buyers' sails."

Still, there are things you can do as a seller to help pique buyer interest: Create a great first impression by improving curb appeal. Cut the grass, trim the hedges and plant flowers. Touch up the exterior paint. Repaint the interior. Again, this is an inexpensive way to give your home a fresh, clean appearance. Keep colors neutral. Refresh tired carpets by having them cleaned. Tile floors can look new again by cleaning the grout and sealing it.
Remove clutter from the house. This improves the appearance and makes rooms seem larger.
If you don't want to hire a professional stager, then move furniture around to improve the flow of the home and make it seem more open. Put excess furniture in storage. Replace old cracked caulk in the kitchen and baths. This not only freshens up the rooms but also improves water resistance. Make your home seem lighter and brighter by replacing or adding light fixtures. Purchase an appliance warranty. For a few hundred dollars, you can give potential buyers peace of mind. If you want to spend a bit more, then make energy-efficient improvements. Replace old leaky windows. Purchase Energy Star appliances. Energy-efficiency is important to many homebuyers today. For more tips to help sell your home, call our CENTURY 21 Norma Altman Realtors office today.

A lease option is an arrangement between you and a seller to exercise the option to buy a house after you have rented it for a specific period. A portion of your rent would be applied toward the purchase if the option is applied. This is referred to as rent credit, which most institutional lenders will accept as part of the down payment if rental payments exceed the market rent and if a valid lease-purchase agreement is in effect, a copy of which must be attached to the loan application. Read any lease option arrangement carefully for details on transferring the option and other important concerns. For information on lease options, contact your real estate agent (some even specialize in such transactions) or read up on lease options at the public library or on the internet. If you have a real estate attorney, ask if he or she has any prepared information you can review.

Once you’ve found your dream house, it’s time to get started with the financial and contractual side of the purchase. Let your CENTURY 21® Norma Altman Realtors professionals guide you through this process. Purchase contracts vary in length and terms from state to state, and within a state, from locality to locality. Because you and the seller have different goals, rely on your CENTURY 21 Norma Altman Realtors agent’s experience and expertise. He or she can bring order and calm to the process and will know what questions you may not know to ask to help you reach a favorable outcome. Multiple offers on the same home are not uncommon, so you may only get one chance to make an offer that the seller will consider. That's why it's important to think carefully about your strategy. In most cases it is better to have your real estate professional negotiate the offer. If you have any personal interaction with the homeowner, don't give out any information about your move, your current housing status, financial status or your feelings about their property - positive or negative. This could hurt you in future negotiations.

Now that you know what you're looking for, the next step is figuring out what you can afford. A review of your income, savings, monthly expenses, and debt will be necessary. Early on in the process, you'll want to get pre-qualified for a mortgage loan, which helps determine how much you can afford. It enables you to move swiftly when you find the right home, especially when there are other interested buyers. It also indicates to the seller that you are serious and can afford to buy the property. A pre-approval is a simple calculation done by a mortgage lender that tells you the amount you'll be able to finance through a loan and what your monthly payment will be. When you find a home to buy, a pre-approval also reassures the seller that you have the financial means to purchase his or her home. Know what you can afford is the first rule of home buying, and that depends on how much income and how much debt you have. It pays to check with several lenders before you start searching for a home. The price you can afford to pay for a home will depend on several factors, such as: gross income the funds you have available for the down payment, closing costs and cash reserves required by the lender your debt your credit history the type of mortgage you select current interest rates.

An important first step is selecting a buyer's agent to help you find your dream home. He or she can represent the buyer's interest in a real estate transaction. Before making a decision, however, have a realtor explain the pros and cons of using a buyer's agent versus a sales or dual agent. A CENTURY 21® Norma Altman Realtors agent can guide you through every step of buying your next home. When you're ready to visit houses, ask your CENTURY 21 Norma Altman Realtors professional champion to arrange showings, and be sure to keep track of the properties you've seen. Each time you view more properties, refer to your "what's right for you" notes to immediately eliminate any that clearly do not meet your standards. And bring a digital camera to record what you see – you’ll be happy to have the record afterwards. After touring each home, write down what you liked and didn't like. Develop a rating system that will help narrow the field. For example, pick the house you like best on day one and compare all other houses to it. When you find a better one, use the new favorite as the standard.

RISMEDIA, Nov. 9, 2009: President Barack Obama has approved the first-time homebuyer tax credit extension which will extend the tax credit until April 30, 2010. 

The extension is part of a $24 billion economic stimulus bill that will extend the $8,000 tax credit for homebuyers who are purchasing their first home from the current November 30 deadline and expands the program to offer a credit of $6,500 to homeowners who have lived in their current home for at least five years and are seeking to relocate. 

The following details apply to the homebuyer tax credit expansion: 

Who is Eligible
-First-time homebuyers, who are defined by the law as buyers who have not owned a principal residence during the three-year period prior to the purchase, may be eligible for up to an $8,000 tax credit.
-Existing homeowners who have been residing in their principal residence for five consecutive years out of the last eight and are purchasing a home to be their principal residence (“repeat buyer”), may be eligible for up to a $6,500 tax credit.
-All U.S. citizens who file taxes are eligible to participate in the program. 

Income Limits
Homebuyers who file as single or head-of-household taxpayers can claim the full credit ($8,000 for first-time buyers and $6,500 for repeat buyers) if their modified adjusted gross income (MAGI) is less than $125,000.
-For married couples filing a joint return, the combined income limit is $225,000.
-Single or head-of-household 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 credit is not available for single taxpayers whose MAGI is greater than $145,000 and married couples with a MAGI that exceeds $245,000. 

Effective Dates
-The eligibility period for the tax credit is for homes purchased after Nov. 6, 2009, and before May 1, 2010. However, home purchases subject to a binding sales contract signed by April 30, 2010, will qualify for the tax credit provided closing occurs prior to July 1, 2010. 

Types of Homes that Qualify
-All homes with a purchase price of less than $800,000 qualify, including newly-constructed or resale, and single-family detached, townhomes or condominiums, provided that the home will be used as their principal residence. Vacation home and rental property purchases do NOT qualify. 

Tax Credit is Refundable
-A refundable credit means that if the amount of income taxes you owe is less than the credit amount you qualify for, the government will send you a check for the difference.

-For example:
-A first-time buyer who qualifies for the full $8,000 credit who owes $5,000 in federal income taxes would pay nothing to the IRS and receive a $3,000 payment from the government. If you are due to receive a $1,000 refund, you would receive $9,000 ($1,000 plus the $8,000 first-time homebuyer tax credit).
-A repeat buyer who owes $5,000 would pay nothing to the IRS and receive $1,500 back from the government. If you are due to get a $1,000 refund, you would get $7,500 ($1,000 plus the $6,500 repeat buyer tax credit).
-All qualified homebuyers can take the tax credit on their 2009 or 2010 income tax return. 

Payback Provisions
The tax credit is a true credit. It does not have to be repaid unless the home owner sells or stops using the home as their principal residence within three years after the purchase.

Buying a home is one of the most important decisions you will make. That's why it's in your best interest to choose an experienced real estate agent who listens to and understands your needs, and works in the area where you want to live. When you choose a CENTURY 21 Norma Altman Realtors agent, you're dealing with an experienced professional who understands your concerns and will provide you with the personalized service that makes all the difference. CENTURY 21 is in 42 countries, 7,800 offices, 104 languages, and represented by 143,000 agents who understand the life changes that real estate decisions can bring. What should you expect in your first meeting with a real estate agent? A CENTURY 21 Norma Altman Realtors agent typically will talk to you about the neighborhood where you want to live, home prices, schools, transportation, and the surrounding commercial and residential areas.