First time buyers could buy this 4 bedroom, 2.5 bath home in Old Towne East for around $250K

This afternoon President Obama signed the bill into law that will extend the $8,000 homebuyer tax credit to contracts signed by April 30 and closed by June 30.

I’m surprised that they left the two month window but I think it’s very smart. Still, even if it were this week, I would not try to buy a short sale property or a foreclosure that doesn’t have the deed in the bank’s name even with the 7.5 month leeway.

Here’s the best part–a tax credit for SELLERS. The bill creates a $6,500 credit for those who buy a home after living in their current house at least five years. That will apply to contracts signed by April 30 and closed by June 30. The current credit defines a first-time homebuyer as someone who has not owned a residence within the past three years.

The credit will be available only for the purchase of principal residences priced at $800,000 or less.

This is huge. If you have owned your Columbus area home for at least five years–and I believe you must have lived in the home for at least five of the last eight years–you too can receive a credit. I can’t envision a scenario where you could claim both sides of the tax credits unless it was something along the lines of you selling your home and then turning around and buying the next home in your new spouse or girl/boyfriend’s name who has not owned a home.

The bill will raise the adjusted gross income cap to $125,000 for single filers and $225,000 for joint filers. The amount of the credit currently begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.

This is important. It opens the tax credit up to a whole new set of first time buyers who were not previously eligible and who could, conceivably, purchase a home with a little higher price tag that this year’s crop of first time home buyers weren’t even looking at.

I've always loved the stone pillars flanking this Bexley Home

Instant Equity. Two words anyone buying real estate in Clintonville, Bexley, Grandview, Downtown, Short North, Berwick, Westgate or anywhere else in Central Ohio love to hear.

The problem is, I’ve heard those two words too often lately. The problem is the context and the definition of instant equity.  In my opinion, anyone buying a home that has instant equity is anyone buying a home at a substantial discount to the Market Value of the  home. That range from selling price to market value equals instant equity (though the bank might not think so).

What I’ve heard a lot lately is something along these lines, “…and this Seller paid $338,500 for it just a few years ago and is selling it for only $299,900. That’s a lot of instant equity for your buyer!”

Hold on a minute Buster, who cares what the Seller paid for it! In today’s market, if the home the Seller paid $338,500 for in 2006 is only worth $290,000 then there is NO instant equity. It’s simply priced at or around market value. Market value simply means whatever the market (all you buyers out there in Columbus thinking of buying a home) is willing to pay for it.

Hold on though, because it works both ways…..I always tell Buyers that what the  Seller paid for the home has no bearing on what the home is worth.  That means if the Seller bought the Columbus home via foreclosure, at auction or even on the market with Instant Equity….ie-if the Seller got a deal…you can’t punish them when buying the house. They are the one who got the deal, they deserve to make a profit and the Buyer should anticipate paying market value for the home. Just because the Seller got a deal on the home doesn’t mean she has any obligation to pass that deal on to the Buyer.

The kids have 2 sport practices and a music lesson tonight. Are you eating round the table?

This is a post I’ve been thinking about for a long time. Over the last few years, Buyers have fallen on both sides of the  dining room fence.
The bottom line-Dining Rooms are like Fireplaces, everybody wants one but few use one. Americans love the idea of a dining room but how many families do you know that eat dinner together every night gathered around the dining room table? I do maybe 3 nights a week and I think that’s high. I also don’t have a formal dining room, rather a spot to fit a formal dining room table between the kitchen and living room, all of it open space.

When staging a home to sell, the  dining room better look like a dining room. If it exists, show it off.

If you live in Bexley or Upper Arlington or parts of Worthington and have a 4 bedroom house then buyers are looking for dining rooms and you’d better have one. If you have an $850,000 contemporary home in Upper  Arlington though, it’s OK to NOT have a dining room but instead have a large open space.

Grandview buyers like traditional floor plans and, obviously, so do Olde Towne East buyers – but those homes are so large that there’s plenty of space for everything. Clintonville buyers are always looking to maxamize space and I’ve seen many homes that live without a dining room but always  “re-install” it when it’s time to sell.

Eating space is important in German Village and so is historical accuracy.  Space, however, is often at a premium and a dining room just isn’t as important as it used to be. When those same German Village couples start their families and move to Bexley, though, it becomes more important, at least in theory.

Dining rooms are a hold over to pre-television, pre computers, pre-this-family-has-3-practices-and-a-music-lesson-tonight households. They just aren’t as important as they used to be. Eating dinner together as a family is a romantic notion that isn’t always feasible to follow-through on.

Ten minutes from downtown Columbus sits a wonderful community where homes are affordable and attractive and the neighbors all know each other. They keep their homes and their lawns looking fantastic and boast a large park as a community moniker.

Westgate is an approachable first time home buyer enclave with easy access to the best of Columbus.  Click here to see what is for sale in Westgate’s 43204 zip code. In this edition of Delicious Real Estate’s Summer of Love for Columbus Neighborhoods, Westgate resident Josh Quinn talks about the community he lives in.

The Average Westgate home on the market right now is about 1400 sf and listed around $120,000.  TEN Westgate homes that were for sale are currently in Contract around $80/sf.