Arizona Real Estate, Arizona homes for sale, AZ home listings

Arizona Homes for Sale-Foreclosure Homes in Avondale, Phoenix, Buckeye, Mesa and Glendale

2008-10-19T21:41:00.003-07:00

We have recently updated our Arizona Real Estate website, www.azrossteam.com to add our Arizona foreclosure homes in Avondale, Buckeye, Phoenix, Mesa and Glendale.

Go to www.azrossteam.com and click on "Our Arizona Homes". The majority of our Arizona home listings are foreclosed, bank owned homes. In addition, once you arrive at our website, scroll all the way down to the bottom of the page and you will notice a directory of our listings with a title telling you which city the Arizona foreclosure house is located and the price.

If you have any questions about any of these Arizona foreclosures, please feel free to call or email us at anytime!

Casey and Trisha Ross
Welcome Home Realty
Phone: 623-326-4128
Email: caseyross@cox.net

Check out my Slide Show!

2007-05-26T21:45:00.001-07:00

Check out my Slide Show!

2007-04-22T15:08:00.001-07:00

El Mirage Home For Sale

2007-04-22T14:48:00.001-07:00

Avondale homes for Sale-Goodyear Homes for Sale-Litchfield Park Homes for Sale

2007-04-19T22:49:00.000-07:00

Visit the link above to view Avondale homes for sale, Goodyear homes for sale and Litchfield Park homes for sale. Listings include photos, descriptions and tours.

And as always, if you would like customized Arizona home listings sent to you, contact Trisha Ross, Welcome Home Realty at 623.326.4128.

Phoenix Townhome For Sale

2007-03-08T00:01:00.000-07:00

16225 N. 30th St.
Phoenix, AZ 85032

Listed by Trisha and Casey Ross
Welcome Home Realty
Cell: 623.326.4128 or 623.326.4132

Cute 2 bedroom townhome is perfect for your buyer and affordable. Downstairs is decorated in neutral colors and includes kitchen w/ fridge, great room with fireplace, half bathroom with pocket door, inside laundry room with washer and dryer included. Upstairs features 2 nice sized bedrooms with a full bathroom & linen closet. Home is located in a quiet neighborhood with a view of the pool from the front door. The back patio is enclosed by a brick wall for added privacy. New development surrounding the area. Come take a look before its gone. Seller will contribute towards closing cost with full price offer.

Search the Arizona MLS-Homes, condos, tonwhomes and Rentals

2007-03-03T08:29:00.000-07:00

We recently launched our new site, www.azrossteam.com. Our new site includes many valuable links and resources including the Arizona MLS search, Arizona new home builder links, Buyer and seller resources and much more. Be sure to visit our site and contact us with any questions about homes for sale in Arizona!

Get into a home now!

2006-12-15T23:57:00.000-07:00

EASING YOUR WAY INTO HOMEOWNERSHIP: A GUIDE TO LOW DOWN PAYMENT MORTGAGE PROGRAMS
By Casey Ross
Century 21 Centre Point
Phoenix, Arizona

There’s no question about it: Buying a first home is a big financial commitment. In most cases, a home is the largest single purchase an individual or family will make in a lifetime. However, because of the tax advantages afforded to homeowners, buying a home also can be one of the best financial decisions you’ll ever make.

Problem is, many would-be homeowners remain renters simply because they mistakenly believe mortgage lenders require that buyers come up with 20 percent of the purchase price as a down payment. While it’s true lenders feel it’s less risky to work with buyers who are able to bring a substantial down payment to the table, the standard 20 percent requirement is fast becoming a relic of the past. In recent years, lenders have become more flexible in working with first-time homebuyers by creating a variety of special programs that require only a small down payment. These programs, combined with the most favorable interest rates in two decades, have encouraged growing numbers of renters to consider the tremendous benefits of home ownership.

While the list of programs offered by individual lenders is too extensive to mention in detail, here are some common programs you are likely to come across as you work with your real estate agent to purchase your first home:
Federal Housing Administration (FHA): FHS mortgages allow homebuyers to purchase a home with as little as a 5 percent down payment, and to finance all non-recurring closing costs. The current maximum loan amount in most urban markets is $151,725. In addition, borrowers are allowed to use up to 41 percent of their gross income toward paying mortgage debt – well above the ratio allowed under most private programs.

Department of Veterans Affairs (VA): VA mortgages allow veteran or active service personnel purchase home with no down payment, up to the current maximum price of $184.000. However, there is no purchase price limitation for buyers able to make a down payment. Like the FHA program, VA borrowers can put up to 41 percent of gross income toward their mortgage debt.

Mortgage Revenue Bonds and Mortgage Credit Certificates: Mortgages funded with these instruments typically require a minimum of 5 percent down and have interest rates that are 1.5 to 2 percentage points below conventional 30-year fixed rates. These types of loans, offered by state and local housing agencies, are available only to first-time homebuyers. There generally are income and purchase price caps that vary, depending on where you plan to buy.

Private Mortgage Insurance: Most major lenders offer privately insured mortgages, which generally require a 10 percent down payment (although some lenders offer loans with a 5 percent down payment to buyers with exceptional credit). These loans typically are not limited by maximum loan amount or purchase price limitation.
Community Homebuyer Program: Through their networks of mortgage lenders, the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) offer Community Homebuyer Program loans. These programs require a 5 percent down payment, 3 percent of which may be a gift. To further help buyers qualify, applicants may use 38 percent of their gross income. Currently, the maximum loan amount available through these programs is $203,150.

Clearly, there are a lot of options for first-time homebuyers. While lenders will be more than happy to share information about their own programs, you can save yourself a good deal of time by first selecting a professional real estate agent who is experienced in working with first-time buyers in the areas where you plan to buy. As agent who focuses on first-time buyers will know from experience which lenders in your area offer a low down payment program that will meet your unique needs.

Today, taking the first step toward owning your own home is easier than before. Your real estate agent is your best resource for finding innovative ways to help you come up with a down payment and qualify for financing. There’s certainly no need to wait until you’ve saved a 20 percent down payment! As always, please call us with any questions you may have or if you need assistance finding that dream home to purchase.

Happy Holidays! Casey Ross, Welcome Home Realty 623-326-4132

Arizona Real Estate Update

2006-12-08T21:20:00.000-07:00

The amount of Arizona homes, condos, and townhomes that expired in the month of November was: 4065 according to the Arizona Regional MLS.

Total number of Arizona homes, condos, and townhomes that closed escrow in the month of November was: 6322.

Many forecasters that predicted a huge real estate market bubble burst are slowly but surely eating their words. The Arizona market seems to be on its way to recovery after hitting its rock bottom.

Mortgage rates are still at all-time lows and these companies looking to recover from slower months are offering numerous, creative ways to finance home purchases.

The Arizona market still continues to be a buyers market and it is a great time to purchase a home in order to take advantage of tax benefits for the 2006 calendar year.

Arizona homes for sale-One quick search

2006-11-15T01:35:00.000-07:00

AVONDALE ARIZONA HOMES FOR SALE:	SURPRISE ARIZONA HOMES FOR SALE:
Brand new Avondale home-4000 sq. ft.!	»Gated community, Sparkling Pool, Peoria Unified Schools!
Only $99/sq. ft-New Avondale Home for sale	»Immaculate Surprise home, Corner lot, Affordable!
Large family home in Avondale AZ-Need Space?	Great value, Priced below smaller homes-Surprise
Brand new Avondale AZ home-Large loft and den	»Immaculate Surprise home, Corner lot, Affordable!
A great floorplan-Take a look!	First time Surprise Homebuyers? Take a look!
LITCHFIELD PARK ARIZONA HOMES FOR SALE:ODYEAR	» Brand new, Surprise AZ home for sale, Veramonte!
Open floorplan, pool, 3 car garage-Litchfield Park AZ home	EL MIRAGE ARIZONA HOMES FOR SALE:
LAVEEN ARIZONA HOMES FOR SALE:	Ready for move-in, $$$ in upgrades-El Mirage AZ
Almost 3100 sq. ft Laveen AZ Home!	Upgraded, El Mirage AZ home-Move-in Ready and affordable

Arizona Homes for Sale-View Arizona Real Estate below

2006-10-08T00:20:00.000-07:00

3 Bdrm Single family house - El Mirage
El Mirage Arizona Home for Sale, Wonderfully upgraded- A sacrifice at this price!

Outside - Front

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Contact Info

		Casey Ross
		Century 21 Centre Point
		caseyross@cox.net
		623-326-4132

Price	$235,000
Street	12617 W. Surrey Ave.
City and State	El Mirage, AZ
Property Type	Single family house
Year Built	2003
Sq Footage	1,615
Bedrooms	3
Bathrooms	2 full, 0 partial
Floors	1
Parking	2 car garage
Lot Size	Unspecified
HOA/Maint	$0 per month

Description

Completely upgraded! Seller has spared no money turning this home into an elegant beauty. The best value in El Mirage. From the moment you walk in the home you will see the upgrades and wide open floorplan. Many, many extras...Call today to request a showing, available just about anytime to show!

Property Features

	-	Central A/C
	-	High/Vaulted ceiling
	-	Walk-in closet
	-	Tile floor
	-	Family room
	-	Office/Den
	-	Dining room
	-	Breakfast nook
	-	Dishwasher
	-	Stove/Oven
	-	Microwave
	-	Laundry area - inside
	-	Yard

Community Features

Garage parking

Other Special Features

	-	20 inch tile throughout except bedrooms
	-	High vaulted ceilings
	-	Wide open floorplan with great room
	-	Den with french doors and area for closet-Could easily be a 4th bedroom
	-	Spacious kitchen with island that has cabinets
	-	Dining area out of traffic area
	-	Split master bedroom with large walk-in closet
	-	Plant and art niches

3 Bdrm Single family house - Litchfield Park
Wonderful Wigwam Creek home in Litchfield Park AZ. Fenced Pool, 3 car garage, and tons of tile!

Outside - Front

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Contact Info

		Casey Ross
		Century 21 Centre Point
		caseyross@cox.net
		623-326-4132

Price	$385,000
Street	4436 N. 129th Lane
City and State	Litchfield Park, AZ
Property Type	Single family house
Year Built	2002
Sq Footage	2,149
Bedrooms	3
Bathrooms	2 full, 0 partial
Floors	1
Parking	3 car garage
Lot Size	9,369 sqft
HOA/Maint	$33 per month

Description

Once you walk in, you know that this is the home for you. Great for a family or those who love open floorplans, pool and places to entertain. Great neighborhood, close to shopping, Arizona Cardinals stadium and freeways. Immaculate and well-maintained home, just bring your furniture, everything else is done!

Property Features

	-	Central A/C
	-	Walk-in closet
	-	Tile floor
	-	Living room
	-	Office/Den
	-	Breakfast nook
	-	Dishwasher
	-	Refrigerator
	-	Stove/Oven
	-	Microwave
	-	Laundry area - inside
	-	Swimming pool

Community Features

	-	Garage parking
	-	Storage space(s)

Other Special Features

	-	Quiet and clean Wigwam Creek, close to shopping
	-	Outstanding curb appeal with professionally landscaped front yard
	-	Tile everywhere except bedrooms
	-	Large, salt water-pebbletec pool with security fencing
	-	Plush backyard landscaping with grass, flowers, trees, flagstone pathways
	-	Huge kitchen with 42" cabinets, breakfast bar, island and pantry
	-	Split master bedroom with sep. exit to back patio
	-	Comfy den with archway, ideal for office

3 Bdrm Single family house - Surprise
TIRED of Looking at DIRTY homes? Check out this super clean, move-in ready Surprise AZ home. Corner lot, RV gate-dog run

Photo 1

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Contact Info

		Casey Ross
		Century 21 Centre Point
		caseyross@cox.net
		623-326-4132

Price	$219,900
Street	15476 W. Mauna Loa Ln.
City and State	Surprise, AZ
Property Type	Single family house
Year Built	2001
Sq Footage	1,352
Bedrooms	3
Bathrooms	2 full, 0 partial
Floors	1
Parking	2 car garage
Lot Size	5,833 sqft
HOA/Maint	$27 per month

Description

Once you walk in you will love this home. Sellers have taken outstanding care of home and added many upgraded touches including paint and landscaping. This is the home your friends and family will be more than happy to come to and you will be proud to call home. JUST REDUCED $10K!

Property Features

	-	Central A/C
	-	High/Vaulted ceiling
	-	Walk-in closet
	-	Living room
	-	Dining room
	-	Breakfast nook
	-	Dishwasher
	-	Laundry area - inside
	-	Yard

Other Special Features

	-	Located on corner lot
	-	RV gate and dog run
	-	Immaculate home
	-	Upgraded carpet throughout
	-	Large great room with vaulted ceilings and media niche
	-	Meticulous landscaping with grass, curbing, trees, etc.
	-	Extended patio slab for fire pit, patio table and chairs
	-	Move-in ready, just bring your furniture

4 Bdrm Single family house - Phoenix
Tired of small homes at large prices? Check out this new home! 3071 sq. ft., 3 bedrooms, 3 bathrooms and 3 car garage.

Photo 1

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Contact Info

		Casey Ross
		Century 21 Centre Point
		caseyross@cox.net
		623-326-4132

Price	$325,000
Street	5126 W. Apollo Rd.
City and State	Phoenix, AZ
Property Type	Single family house
Year Built	2005
Sq Footage	3,071
Bedrooms	4
Bathrooms	3 full, 0 partial
Floors	2
Parking	3 car garage
Lot Size	6,600 sqft
HOA/Maint	$48 per month

Description

Only 1 year old and hardly lived in. Close to all that Phoenix has to offer. Great floorplan and perfect for large family or thos tired of small home living. Priced so well, you cannot beat this!

Property Features

	-	Central A/C
	-	Tile floor
	-	Family room
	-	Living room
	-	Bonus/Rec room
	-	Breakfast nook
	-	Dishwasher
	-	Refrigerator
	-	Stove/Oven
	-	Microwave
	-	Basement
	-	Washer
	-	Laundry area - inside
	-	Yard

Other Special Features

	-	Only $105/ sq. ft. ! Cant beat the pricing
	-	Almost 3100 sq. ft.
	-	4 bedrooms plus a loft
	-	Built in 2005, custom front elevation
	-	ALL appliances stay, just bring your furniture
	-	Convenient location, close to I-10 and downtown Phoenix
	-	4.5% CO-BROKE For ARIZONA REALTORS!

4 Bdrm Single family house - Avondale
Avondale Arizona Home for sale, Lakefront beauty with pond and waterfall in Crystal Gardens!

Photo 1

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Contact Info

		Casey Ross
		Century 21 Centre Point
		caseyross@cox.net
		623-326-4132

Price	$424,000
Street	10914 W. Palm Ln.
City and State	Avondale, AZ
Property Type	Single family house
Year Built	1999
Sq Footage	2,495
Bedrooms	4
Bathrooms	2 full, 1 partial
Floors	1
Parking	2 car garage
Lot Size	7,000 sqft
HOA/Maint	$0 per month

Description

Once you walk in to this home, you will want to sit down, relax and call it yours! A wonderful backyard with serene views of the lake, pond, and an enormous amount of green that you just dont get everywhere in Arizona!

Property Features

	-	Central A/C
	-	High/Vaulted ceiling
	-	Walk-in closet
	-	Tile floor
	-	Family room
	-	Living room
	-	Bonus/Rec room
	-	Office/Den
	-	Dining room
	-	Breakfast nook
	-	Dishwasher
	-	Refrigerator
	-	Stove/Oven
	-	Laundry area - inside
	-	Yard

Community Features

	-	Garage parking
	-	Lake

Other Special Features

	-	Backs to lake with privacy lot
	-	Vaulted ceilings
	-	Extensive use of tile throughout
	-	Family, living, dining and bonus room
	-	Open floorplan all on single story
	-	Bakcyard is paradise.....
	-	Pond with waterfall and filter
	-	Citrus trees, garden, and mature landscaping

3 Bdrm Single family house - Avondale
BRAND New Avondale Arizona Home, Close to Cardinals Stadium, 101 and I-10. HURRY!

Photo 1

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Contact Info

		Casey Lee Ross
		Century 21 Centre Point
		caseyross@cox.net
		623-326-4132

Price	$319,900
Street	12349 W. Heatherbrae Dr.
City and State	Avondale, AZ
Property Type	Single family house
Year Built	2005
Sq Footage	2,226
Bedrooms	3
Bathrooms	2 full, 1 partial
Floors	2
Parking	2 car garage
Lot Size	7,000 sqft
HOA/Maint	$0 per month

Description

Brand new D.R. Horton home ready for move-in. Very popular floorplan with plenty of space for storage, children, family and guests. Seller is extremely motivated. REALTORS----> 4.5% co-broke!

Property Features

	-	Central A/C
	-	High/Vaulted ceiling
	-	Walk-in closet
	-	Family room
	-	Breakfast nook
	-	Dishwasher
	-	Stove/Oven
	-	Laundry area - inside
	-	Yard

Community Features

	-	Garage parking
	-	Storage space(s)
	-	Playground

Other Special Features

	-	HUGE 28'x14' loft
	-	Vaulted ceilings
	-	Upgraded kitchen appliances
	-	Home-length back patio
	-	Den downstairs with french doors
	-	Brand new and never lived in

4 Bdrm Single family house - Surprise
Spectactular, Surprise AZ home for sale-Pebbletec pool, large lot, gated community, Peoria Unified Schools!

Outside - Front

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Contact Info

		Casey Lee Ross
		Century 21 Centre Point
		caseyross@cox.net
		623-326-4132

Price	$360,000
Street	18315 N. 111th Dr.
City and State	Surprise, AZ
Property Type	Single family house
Year Built	2000
Sq Footage	2,457
Bedrooms	4
Bathrooms	2 full, 1 partial
Floors	2
Parking	2 car garage
Lot Size	Unspecified
HOA/Maint	$0 per month

Description

Great home, area, and schools. Located in award-winning Peoria Unified school district. Backyard is paradise and great for those hot summer days and entertaining. Will not last long!

Property Features

	-	Central A/C
	-	Central heat
	-	High/Vaulted ceiling
	-	Walk-in closet
	-	Family room
	-	Living room
	-	Breakfast nook
	-	Dishwasher
	-	Refrigerator
	-	Stove/Oven
	-	Microwave
	-	Laundry area - inside
	-	Balcony, Deck, or Patio
	-	Yard
	-	Swimming pool

Community Features

	-	Garage parking
	-	Gated property
	-	Secured entry

Other Special Features

	-	Wonderful floorplan with 4 bedrooms
	-	Pebbletec pool with waterfall, acrylic decking
	-	Large covered patio with 2 ceiling fans
	-	Family and living rooms
	-	Large open kitchen with island and pantry
	-	Extra wide lot with no neighbors behind home
	-	Huge master bedroom with sitting area
	-	Located in gated community

4 Bdrm Single family house - Surprise
Surprise Arizona Home for Sale, Brand new, almost 3000 sq.ft. Dramatic vaulted ceilings, large lot in Veramonte-Surprise

Outside - Front

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Contact Info

		Casey Lee Ross
		Century 21 Centre Point
		caseyross@cox.net
		623-326-4132

Price	$399,900
Street	14127 W. Bloomfield Rd.
City and State	Surprise, AZ
Property Type	Single family house
Year Built	2005
Sq Footage	2,956
Bedrooms	4
Bathrooms	3 full, 0 partial
Floors	2
Parking	2 car garage
Lot Size	9,000 sqft
HOA/Maint	$48 per month

Description

Wonderful Richmond American floorplan. Almost 3000 sq. ft and plenty of room. Very elegant home! Priced to sell, once you see it, you will want it.

Property Features

	-	Central A/C
	-	High/Vaulted ceiling
	-	Walk-in closet
	-	Family room
	-	Living room
	-	Bonus/Rec room
	-	Dining room
	-	Dishwasher
	-	Stove/Oven
	-	Laundry area - inside
	-	Yard

Community Features

Garage parking

Other Special Features

	-	Brand new and priced $50-$75K below completed spec homes!
	-	Two tone paint throughout
	-	Dramatic entry and staircase with vaulted ceilings
	-	Formal dining room with plant niche
	-	1 full bedroom and bathroom downstairs
	-	Upgraded cabinets throughout
	-	Ceiling fans and faux blinds throughout
	-	RV gate and Large lot

4 Bdrm Single family house - El Mirage
El Mirage Home for Sale-Fully Upgraded! Loft, new tile, new carpet, blinds, ceiling fans, kitchen appliances.

Outside - Front

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Contact Info

		Casey Ross
		Century 21 Centre Point
		caseyross@cox.net
		623-326-4132

Price	$239,900
Street	11935 W. Dahlia Dr.
City and State	El Mirage, AZ
Property Type	Single family house
Year Built	1999
Sq Footage	1,832
Bedrooms	4
Bathrooms	2 full, 0 partial
Floors	2
Parking	2 car garage
Lot Size	Unspecified
HOA/Maint	$11 per month

Property Features

	-	Central A/C
	-	Walk-in closet
	-	Tile floor
	-	Family room
	-	Bonus/Rec room
	-	Dining room
	-	Breakfast nook
	-	Dishwasher
	-	Stove/Oven
	-	Microwave
	-	Laundry area - inside
	-	Balcony, Deck, or Patio
	-	Yard

Community Features

Playground

Other Special Features

	-	Brand new tile in family, kitchen dining and bathrooms
	-	Fresh contemporary interior paint
	-	New carpet throughout
	-	New blinds and ceiling fans
	-	Immaculate front and backyards, fully landscaped
	-	Brand new flat top stove and over range microwave
	-	Wonderfully priced!

Please Call Casey Ross, Century 21 Centre Point with any questions about these listings. Casey and Trisha Ross specialize in assisting homebuyers and sellers in Avondale-Buckeye-Goodyear-Litchfield Park-Surprise-El Mirage and Glendale. Call us with any of your Arizona real estate, questions, needs, and concerns!

Arizona Homes for Sale

2006-09-18T23:28:00.000-07:00

Avondale Home for sale: Lakefront beauty!

Located in Crystal Gardens, this 2400+ sq. ft lakefront home features 4 bedrooms, 2 bathrooms, a pond, waterfall and filter, bonus room with french doors and both a living and family room. Get ready for dinner in the large kitchen with vaulted ceilings and breakfast bar.

For more info on this home, Call Casey Ross, Century 21 Centre Point at 623-326-4132 or email.

Avondale Arizona Home for Sale: Rio Crossing!

Located in Rio Crossing and close to the Arizona Cardinals stadium, the Loop 101 and I-10 Freeways. Featuring over 2400 sq. ft. with 4 bedrooms and 3 bathrooms. Almost new! Spacious kicthen, HUGE master bedroom and extra wide hallways and storage nooks throughout. This is it!

For more info on this home, Call Casey Ross, Century 21 Centre Point at 623-326-4132 or email.

Avondale Arizona Home for Sale: Act Now-Priced to move quick!

Brand new and never lived in! 2226 sq. ft. with 3 bedrooms and 2.5 bathrooms. Features a HUGE 28x14 loft with vaulted ceilings. Large covered patio with pool sized lot, located 1 house away from greenbelt and in cul-de-sac. Priced to sell.

For more info on this home, Call Casey Ross, Century 21 Centre Point at 623-326-4132 or email.

Relocating to Arizona? Realtors, give your clients the best!

2006-08-15T14:00:00.000-07:00

Realtors,
Do you have clients relocating to the Phoenix, Arizona area? The Ross Team of Casey and Trisha Ross-Century 21 Centre Point offer a 30% referral fee for Arizona referrals.

We serve the following areas:
Avondale
Goodyear
Litchfield Park
Luke AFB
Buckeye
Glendale
Peoria
Surprise
El Mirage

We take great pride in taking care of our clients and treat them as family. We are never in a rush to find a home for buyers, rather they make the call on what and when they want to look at homes. Your name is on the line for referring clients to us, and we will ensure that buyers know that their interests are taken care of.

Please feel free to contact us at anytime!

Casey and Trisha Ross
Century 21 Centre Point-Phoenix, Arizona
Email: caseyross@cox.net
Cell: 623-326-4132 or 623-326-4128

Real Estate closing costs-What to expect

2006-06-29T16:59:00.000-07:00

WHAT TO EXPECT IN CLOSING COSTS ON A HOME PURCHASE
By
Casey Ross
Century 21 Centre Point-Phoenix Arizona Realtor

Many are taking advantage of this year’s low mortgage rates to purchase a home. Pent up with excitement, many families, who have scrimped and saved for a down-payment, jump for joy when the mortgage lender finally approves their application. But, they should realize that there’s a whole new set of expenses that must be covered before actually closing on the sale.
New homeowners are often taken aback by up-front closing costs such as mortgage and title insurance, attorney fees, recording fees and loan points, which can run into the thousands of dollars. But there is no need to be afraid of these charges. With a little background on their purpose and shrewd financial foresight, closings can be a breeze.
A lender’s charge for processing the loan can be determined at the beginning of your buying process. Referred to as “points,” these charges are expressed as a percentage of the total loan. For instance, three points are equal to 3 percent of the borrowed amount. “Points” can also become a tool for negotiation with the lender and seller. In a buyer’s market, home sellers will often agree to pay mortgage fees in order to close a deal.
Title insurance can be a substantial expense. The policy covers any financial set-back caused by unforeseen defects in the purchased property and home. The one-time title fee, including search and examination, averages around $430 for a $100,000 home, but it’s recommended that you check with a local title insurance agent ahead of time to effectively determine what you’ll owe before closing.
Additional costs, such as attorney charges, and recording, transfer and inspection fees, can also be predicated ahead of time by the buyer. Most often pest and survey inspections, although included in the official closing statement, are conducted and paid for long before the closing date. However, buyers should consider them as additional up-front costs.
Some closing costs, such as “points,” are fully tax deductible that tax year if you show proof of a separate lump sum payment. They are not deductible in a few cases when the loan is the result of re-financing rather than a home purchase. Application, appraisal, documentation and broker fees can not be deducted.
Some states require payment of property taxes at closing. In some instances, buyers and sellers are asked to put money into an escrow account that will cover any past and future tax obligations. Be sure to check with an attorney or real estate agent before the closing to determine your property tax commitments.
Also, be prepared to pay any assessments if buying a condominium or into an association-governed property. Fees for credit reports, notary public seals and assumptions, which includes the processing of official documents, may also arise.
Knowing what total closing costs will be before starting your home search can help you better understand what price range is right for you. In the end, the process of closing on a mortgage will be easier than you think, leaving more time to plan for your new home.

Home Styles

2006-06-07T22:43:00.000-07:00

WHAT’S YOUR STYLE?
A guide to America’s Most common Home Styles
By Casey Ross
Century 21 Centre Point

Styles of houses vary across the country. From the New England Cape Cod to the Victorians of San Francisco, the choices are almost endless. Knowing which style you prefer is one of the basic elements in your hunt for the perfect home.
Following is a quick guide to help you recognize and use the professional terms for many of the most prevalent house styles:
· Ranch: these long, low houses rank among the most popular types in the country. The ranch, which developed from early homes in the West and Southwest, is one-story with a low pitched room. The raised ranch, which is also common is the U.S.. has two levels, each accessible from the home’s entry foyer, which features staircases to both upper and lower levels.
· Cape Cod: this compact story-and-a-half house is small and symmetrical with a central entrance and a step, gable roof. Brick, wood or aluminum siding are the materials most commonly seen.
· Georgian: Popular in New England, the Georgian has a very formal appearance with tow or three stories and classic lines. Usually built of red brick, the rectangular house has thin columns alongside the entry, and multi-paned windows above the door and throughout the house. Two large chimneys rise high above the roof at each end.
· Tudor: modeled after the English country cottage. Tudor styling features trademark dark-wood timbering set against light-colored stucco that highlights the top half of the house and frames the numerous windows. The bottom half of the house is often made of brick.
· Queen Anne/Victorian: Developed from styles originated in Great Britain, these homes are usually two-story frame with large rooms, high ceilings and porches along the front and sometimes sides of the house. Peaked roofs and ornamental wood trim, many times referred to as “gingerbread,” decorate these elaborate homes.
· Pueblo/Santa Fe Style – Popular in the Southwest, these homes are either frame or adobe brick with a stucco exterior. The flat rood has protruding, rounded beams called vigas. One or two story, the homes feature covered/enclosed patios and an abundance of tile.
· Dutch Colonial – the Dutch Colonial has two or tow-and-one-half stories covered by a gambrel roof (having two lopes on each side, with the lower slope steeper than the upper, flatter slope) and eaves that flare outward. This style is traditionally make of brick or shingles.
· New England Colonial – This two-and-one-half story early American style is box like with a gable roof. The traditional material is narrow clapboard siding and a shingle roof. The small-pane, double-hung windows usually have working wood shutters.
· Southern Colonial –this large, two-to-three-story frame house is world famous for its large front columns and wide porches.
· Split-levels: Split-level houses have one living level about half a floor above the other living level. When this type of home is built on three different levels, it is called a tri-level.

These are just a few of the many styles of homes available across the country – some are more prominent in different areas than others. Knowing home style terms will help you zero in on the type of house that will fill your needs and suit your taste.

Timing in Real Estate

2006-05-06T14:16:00.000-07:00

TIMING IS EVERYTHING WHEN IT COMES TO BUYING HOMES
By Casey Ross
Century 21 Centre Point, Phoenix, AZ.
Arizona Realtor

The old adage that “timing is everything” especially applies to buying a new home. And trying to be at the right house at the right time and get it for the right price can be tricky. Here are some guidelines to assist you:
· Turn to the real estate section of your Sunday newspaper. Monitor the market and tract home prices. Expect to spend 90 days watching the real estate market through advertisements. Question and investigate homes that are advertised month after month. Hard-to-sell properties could either be a warning sign or simply overpriced for the value.
· When a real estate agent provides you with descrit8ions of homes currently on the market from the Multiple Listing Service (MLS), ask for a list of homes that were on the market within the last six months or year in the same neighborhood. Compare asking prices to actual sales prices for the same type homes.
· In addition to monitoring housing prices, learn to identify hot, up-and-coming neighborhoods by tracking selling prices from week to week. If one neighborhood experiences price booms while other house prices are sluggish, its’ clear which community to invest in. If you’re passionate about an upscale area – and on a budget – prepare to buy a fixer-upper and invest some money in renovation. Conversely, beware of buying a beautiful home in a marginal area. You may not get your money back when you sell.
· Keep close watch on the fluctuating mortgage interest rates. Low interest rates are the most inspiring reason to buy property. Watch the rate of Untied States Treasury Bills. According to Sonny Block, well-known talk show hose and real estate author. T-bills are a sure way of predicting the rise and fall of mortgage rates.
· Also watch the national Discount Rate, the rate at which banks can borrow money from the government. When the Discount Rate drops, banks pay less for borrowing the money and in turn reduce mortgage rates to the borrower.
Predicting when a market is ripe for home buying is not an exact science – even for real estate experts. However, by following these simple tips – and staying on top of real estate trends, sales patterns and interest fluctuations, you are sure to get the best house for your buck.

If you are planning to purchase an Arizona home for sale, contact us today and we can provide you with active Arizona home listings that meet YOUR requirements. If you would like to search for Arizona homes for sale, Arizona condos for sale, or Arizona investment properties, visit our Arizona Real Estate website.

Casey Ross
Century 21 Centre Point
Cell: (623) 326-4132
Email
"The Ross Team is the Right Choice for Arizona Real Estate, Your Arizona Realtor, and Your source for Arizona Homes for Sale."

Landscaping and home value

2006-04-24T22:00:00.000-07:00

Whether you live in a condominium or a single-family house, landscaping can certainly make your home easier to sell. But will attractive landscaping add value? It depends.

Potted plants, freshly edged green lawn, and weed-free garden areas will make your home more attractive and appealing. The more appealing the home or condo, the more marketable it is and the faster it will sell.

Well-manicured landscaping helps frame other elements of curb appeal. It is considered a value-added feature because it helps create a positive first impression. Most buyers, however, will not pay extra for trees and lawn, flowers and shrubs.

But you can almost always get a return on your investment in decks and patios. As decks have become more desirable, their resale value has continued to increase.

In the yard and garden of your single-family home or in pots on your condo deck or patio, use plants, trees, and other landscaping elements freely to make your home more appealing and help you sell it more quickly when the time is right.

If you have any real estate–related questions, please call or email me. I am always happy to help.

Casey Ross
Century 21 Centre Point
Phoenix, AZ
Arizona Realtor

PRE-FORECLOSURE HOME FOR SALE

2006-04-04T14:27:00.000-07:00

MLS# 2504159! PRE-FORECLOSURE, HURRY! One of the nicest Pre-Foreclosures you will ever find! A very well-maintained home in Crystal Gardens. Lot backs to plush greenbelt, no neighbors behind home. Diagonally set porcelain tile throughout home except bedrooms. Tastefully painted interior with plant and media niches. Kitchen has upgraded cherry cabinets, formica counters, pantry, island and breakfast bar. Backyard is super clean with citrus trees and desert landscaping. For more pictures, email or call Casey and Trisha Ross, Century 21 Centre Point at 623-326-4132 or 623-326-4128. Email: nospam5caseyross@cox.net. (REMOVE "no spam5" before sending email).

March 2006 Arizona Real Estate Report and News

2006-03-31T22:40:00.000-07:00

March 31, 2006

Top Arizona Real Estate Report-Compiled and brought to you by:
Casey and Trisha Ross
Century 21 Centre Point
Cell: 623-326-4132 or 623-326-4128
Email
Web

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Valley home buyers now hold upper hand

By Glen Creno, The Arizona Republic: Feb. 8, 2006

Andre and Petrusia Bilyk are what's known in the housing market as motivated sellers.

They put up their northeast Valley house for sale in November, hoping it would move quickly.

They wanted to use the profit for things like landscaping and window coverings at a bigger place they're building for themselves and their two children. They also wanted to avoid double mortgage payments.

But the couple got caught in the abrupt market swing that has drastically increased the number of houses for sale in metropolitan Phoenix. They've reduced the price twice - it now stands at $449,000 - yet there were no takers. So they resorted to an old home-selling trick that's supposed to bring luck: burying a statue of St. Joseph upside down by the For Sale sign in their yard.

"The four of us, we held hands, and my wife said a prayer to St. Joseph to put us in escrow," Andre Bilyk said. "We were having an open house the next day. You gotta do what you gotta do."

Listings are up and houses are taking more time to sell as buyers regain the upper hand in the Valley's volatile resale market. Six months ago, the Bilyks would have sold their house in a couple of days, if not a few hours.

Now, the house is waiting for a buyer and competing with more new listings every day as suddenly picky shoppers browse the market and haggle more on price.

The number of houses for sale in metro Phoenix has nearly tripled in the past year, based on December data from the Arizona Regional Multiple Listing Service.

Here's why:

Speculative investors are leaving after realizing gains of 40 percent to 50 percent in the past year.
Prices are higher and buyers, including investors, are finally saying no.
Mortgage rates have nudged higher, making housing even more expensive.
Some homeowners who never considered selling couldn't pass up the opportunity to try to cash in at prices that are still near the top of the market.
"It's shifting to a buyers' market," said Bob Rucker, head of the multiple listing service. "We are returning to a more normal market than we have had over the past year or so."
Buyers' market

That's good news for besieged buyers. They don't have to make instant offers at or above full price to snare a house they might not adore. But the pressure is on real estate agents and sellers to get creative or cut prices to make their listings stand out in the growing crowd.

"The buyers are saying, 'Show me 10 more houses.' They know there is a lot of inventory," said Brett Barry, a Realty Executives agent who's listing the Bilyk house.

"If it doesn't pick up, sellers might have to mark down homes more than they expected to get the attention of the few buyers that are out there. The market moved 50 percent in one year. This could be the morning after."

Jay Butler, head of the Arizona Real Estate Center at Arizona State University Polytechnic, noted in a recent study that Valley resale homes have not been so difficult to afford since 1990.

Incomes could hardly keep pace with price increases, and Butler said the situation could get worse.

"People reach a point where they say, 'I can't afford this,' " Butler said. "If prices and rates move up, we're in deep trouble."

Prices to climb

How quickly has the market changed? Bill Ryan, a ReMax agent in the East Valley, said that in June, he couldn't keep two or three active listings. Now, he has 35.

He expects resale prices to climb 3 percent to 5 percent this year, sustainable gains but not enough to keep investors looking for a quick appreciation and a fast sale in the market.

He said the days of the six-month house flip are over.

"Investors have basically gone away," he said. "Prices are so high, they can't make them economically pencil (out). They were about 30 percent of market early in '05. Take away 30 percent of the market and that's a big hit."

The Bilyks say they won't panic and sell out at a bargain-basement price.

They expect the market to perk up, and they won't move to the new house until the old one sells.

"I'm sitting on a lot of equity in this house," Andre Bilyk said. "The house is gonna sell. It's just going to take us a little longer. We're prepared to hold out."

Petrusia Bilyk said, "It's just timing. Life is timing."

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Extreme home selling

By Les Christie, CNNMoney.com staff writer
January 26, 2006: 2:53 PM EST

Everybody wants something for nothing, and as housing markets slows, homebuyers are starting to get just that. Sellers, reluctant to drop home prices, have been finding creative ways to move product.
The trend is especially evident among developers and homebuilders who have to act much more decisively than individual homeowners who have the option of sitting tight. Some recent freebies include trips to Las Vegas, home-entertainment and security packages, furniture store gift certificates, golf club passes for a year -- even swimming pools, according to Greg Paquin of the Gregory Group, a market-research company.

The Gregory Group reports that in Sacramento, Calif., the value of incentives by homebuilders in the fourth quarter averaged $8,965, double the prior quarter. Incentives include price discounts, upgrades, and promotions.

"Builders don't want to hang on to standing houses -- they have to pay their bills, financing, and taxes," said Paquin.

Steve Melman, a spokesman for the National Association of Home Builders (NAHB) reports that sales incentives have become the rule among its membership -- 56 percent feature non-price incentives. Some 16 percent of NAHB members are now offering to absorb financing points, up from 13 percent six months ago, and 33 percent are paying at least some closing costs, up from 27 percent.

But it's the non-price incentives that attract the public's fancy and 40 percent of the builder's NAHB surveyed are offering optional items at no extra charge to help close deals. A year ago, only 28 percent were doing it.

Bamboo? A standard option?

The offers can be anything from hardwood floors to upgraded lighting, but the most popular incentives seem to revolve around the kitchen, according to Melman. Granite countertops, commercial quality appliances, and wine storage all appeal to buyers. A relatively new option, bamboo floors, has recently emerged as a deal maker.

The giveaway trend is not confined to new-home builders. Ron Phipps, a Providence, Rhode Island broker appeared on the CNN show, Open House, with Gerri Willis in November. He was giving away a Lexus (for two years) with the sale of an existing home. "My goal is to differentiate the property and draw attention to it," said Phipps.

He tries to tie the promotion to some aspect of the property. If the yard is beautiful but requires a lot of care, he'll offer free landscaping for a year or two. If a bathroom is dated, he'll throw in a renovation allowance.

One of his favorite freebies wasn't even aimed at buyers; it went to those merely shopping. Anyone who came to look at one house received 30 days of free groceries. He also targets other real-estate agents. One house came with a trip to Europe for the agent who provided the ultimate buyer. Phipps says he heard of a Florida real-estate broker who was giving away jewelry.

One builder, Georgia-based Forrest Homes, is giving away a two-year lease on a Volkswagen Beetle with a home purchase. That's right, these houses come with their own Bugs. Pulte Homes, a Michigan-based homebuilder, is paying the heating bills for six months to anyone who buys a home in one of its Maryland developments. Pulte also will throw in a free-gas fireplace, hardwood floors, upgraded cabinets, and a washer/dryer -- and a 42" plasma TV.

Apparently, though, the deal may sound better than it actually is -- a Pulte spokesman, Jim Zeumer, was quoted in the Wall Street Journal saying that all but the plasma TV were already standard in the houses.

The incentive ideas keep, shall we say, flowing. The NAHB's Melman recently attended a show where many homebuilders showcased their free upgrades. The incentive item that caused the biggest, well, splash, was an upgraded Kohler bathroom that included a toilet that had number-one and number-two buttons. "It saves on water bills," he says.

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Housing 'fix, flip' crowd fired up

Wannabes eager for quick bucks

By Betty Beard - The Arizona Republic, Feb. 21, 2006

The housing market may have cooled but not the enthusiasm for investing in Phoenix area real estate.

About 1,000 investors and would-be investors spent the weekend at Phoenix Civic Plaza learning how to find cheap properties and then "fix and flip" them.

They came with different backgrounds and bank accounts, but all seemed eager to find out more about what is considered one of the best ways to find strong returns on investment: Put your money and sweat equity into real estate.

A year of historic gains may be behind investors in the Phoenix area, but that didn't deter the crowds at the Real Estate Investors and Landlords Conference & Expo, where they heard tantalizing tales from investors who picked up distressed properties cheap, fixed them and resold them for solid profits.

The fact that housing prices have stabilized or even fallen in some areas and the number of homes for sale has risen significantly in the past few months didn't seem to cool interest.

"It does affect the short term. I think the heat is going to come out of the market a little bit for not long and not much," said Phoenix investor Dolf de Roos as he signed more than 100 copies of his new book 52 Homes in 52 Weeks about his success investing in the Las Vegas housing market. He was the featured speaker Saturday night at the event, sponsored by the Arizona Real Estate Investors Association.

He said that even if housing prices come down by 5 or 10 percent, investors still came out ahead because the prices had grown by about 40 percent last year in the Phoenix area.

"If it was the stock market, that would be a minor correction," he said. "So what's the big brouhaha? In five years, it'll be way ahead of where it is now. I am not worried about it, not with 100 houses being built and filled every day."

De Roos, who is primarily a commercial investor, said the Phoenix area remains good for real estate investing because it is growing and has several major employers.

Investors have been blamed for, or credited with, causing the huge run-up in housing prices over the past year. But Alan Langston, executive director of the Arizona Real Estate Investors Association, said it wasn't investors who did that but short-term speculators.

True investors make their money over the long term, while speculators like to hold property for several months or a year, he said. Many have moved on to other states, such as Florida and Texas, he said.

Investors like to buy properties that have tenants and steady rent checks, such as apartments and shopping centers. David Lindahl, a Boston-based investor, said he has earned a lot of money owning apartment complexes.

Dealing with tenants was a hassle at first, but then he learned to hire good management companies. He said tenants expect you to raise rents every year. Don't disappoint them; raise that rent, he advised.

The conference's expo showed that many businesses have sprung up to support investors. There are companies that offer classes, sell distressed or foreclosed properties wholesale and help with renovations, tax shelters, insurance and financing.

The conference lured amateurs eager to make money, including some who have not owned a home, such as Steve Reppe, 23, a University of Arizona student. He saved about $15,000 while in Afghanistan and Iraq with the Army and wants to invest it.

"I used to work really hard when I was in the Army for not much money," he said. "Why not work less hard for more money?"

Ekaterina Glover, 23, a Phoenix resident, said she has been reading books about real estate investing and realized that many mentioned Phoenix. She dreams of getting rich in real estate. "I do not have a stable job history or a credit history," she said. "But if you're enthusiastic and happy to learn, you can make it."

Valerie Walters, 48, a human-resources manager at a Phoenix bookstore, wants to invest and has been studying up on it for years. "I am tired of reading and ready to get my feet wet," she said.

LeBertha Umbreit, a former Realtor who has been a Phoenix lawyer for two years, has learned from representing people in real estate transactions that there is a lot of money to make in real estate. "Real estate is still the best investment around," she said "You can get into real estate investing with virtually no money."

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Land bills stir lawsuit fears

By Robbie Sherwood - The Arizona Republic, Feb. 21, 2006

Lawmakers are out to stop city governments from forcing private-property owners to sell their land so the governments can hand it over to developers in the name of economic progress. And they are in a hurry, poised to put the fast-tracked measure on the November ballot as early as this week.
Backed by Republican legislative leaders and written by public-interest lawyers who have won high-profile property rights cases, the twin House and Senate measures would ask voters to rein in abuses by city governments that use the redevelopment practice known as eminent domain. There are more than a dozen bills moving through the Legislature to reform eminent domain, but the referendum incorporates many of the same ideas, including making cities pay owners more than fair market value for their properties.

But Valley mayors such as Phoenix's Phil Gordon and Tempe's Hugh Hallman are raising red flags. They say one portion of the recently introduced measure goes far beyond eminent-domain cases and would spark lawsuits against cities for any zoning decisions that might affect property values. The mayors and the Arizona League of Cities and Towns hope to negotiate changes to the measure before it goes for a floor vote in the House and Senate.

"It's a litigation bonanza, and it will stop business," Gordon said of the twin House and Senate measures.

Gordon and Hallman warned that if voters pass the measure, it will open city councils to lawsuits not just for eminent-domain cases but for any zoning decision that affects a person's property, with taxpayers compensating for the loss. Not only that, taxpayers would be on the hook if a council didn't take an action that could have improved a person's property value.

So, if a resident wants to turn his house into a gas station and City Hall says no, he can sue and get compensated for the value of the lost hypothetical business, Gordon said. Or, if City Hall does allow the pumps to flow, then his neighbors can sue and get paid for their declining property values.

Hallman, an attorney, supports many of the proposed reforms but said the city zoning process will end if the measure becomes law.

"Do we really want to allow topless bars next to schools and churches?" Hallman said. "Because all it takes is a smart lawyer and a good economist, and any zoning change can be subject to a lawsuit over diminution of value."

The referendum's authors said critics are misreading the measure and over-reacting.

Tim Keller, executive director of the Arizona Institute for Justice, a public-interest law firm that has handled several cases, drafted the measure. Keller said the only property owners who would be eligible to sue under the new law are those directly being rezoned.

"They're totally wrong on that," Keller said of Gordon's and Hallman's criticisms. "The change has to happen on your property in order for there to be a cause of action."

Keller added, "Take the recent Trump Towers case in the Biltmore area. The city changed zoning to allow the towers to be built (before undoing the decision). All the surrounding landowners said it would affect their property values. But this measure wouldn't apply to them because the zoning change didn't affect their properties."

But Phoenix lobbyist Karen Peters said there is nothing in the bill's language that limits lawsuits to only those property owners who are the subject of a zoning change. If neighboring owners lose property value, they can sue City Hall, too.

One of the measure's most powerful sponsors, Senate Majority Leader Tim Bee, said he and other top Republican lawmakers will meet with city leaders to address their concerns. But Bee said he remains committed to helping property owners who lose the value of their homes due to city actions.

"What I'm trying to address is a situation where government lowers the value of a person's property by a zoning ordinance," said Bee, R-Tucson. "If that decision takes away the value, then the property owners should be compensated for that."

Bee defended moving both versions of the measure at the same time, speeding the process, because eminent-domain reform is considered one of the top GOP issues of the legislative session.

Property rights is also a hot issue with voters. Legislatures nationwide are pushing bills to slow use of eminent domain. The Institute for Justice won a high-profile case in Mesa three years ago when it stopped city officials from trying to seize Bailey's Brake Shop to make way for a hardware store.

But the so-called regulatory takings aspect of the bill, where zoning decisions can spark lawsuits if property values drop, is modeled after Oregon's Measure 37, which voters approved in 2004.

That controversial new law has been tied up in the state's Supreme Court since a judge ruled it unconstitutional last year.

Ken Strobeck, recently appointed executive director of the Arizona League of Cities and Towns, urged lawmakers to steer clear of a Measure 37 copycat.

"Regulatory taking is a can of worms that will never be resolved," Strobeck said. "It's a whole new dimension that should not be included in this bill."

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Cooling housing market means sizzling bargains

builders to buyers: let's make a deal

By Catherine Reagor and Glen Creno - The Arizona Republic
Feb. 18, 2006

Buy a new Valley home and don't make a mortgage payment for a year. Save $50,000 on a half-million-dollar house in the East Valley if you buy today. Purchase a home in the West Valley now and get a free swimming pool.

Like car dealers trying to clear their lots of unpopular models, home builders are offering all types of deals on houses that are nearly done or those finished and standing empty across metropolitan Phoenix.

These kinds of deals were unheard of last summer, when people camped out overnight for the chance to get into a lottery to buy in a new subdivision. Builders rationed lots and jacked up prices as they tried to both regulate and cash in on the rabid demand of a market fueled in part by investor speculation.

Now the frenzy is gone, and home builders are trying to entice buyers with freebies and price cuts in "let's make a deal" sales pitches. It is another clear sign that the Valley's home-building market is slowing from the pace that made it No. 1 in the country just last year.

It is not just home building cooling off in the Valley. The number of existing homes for sale has shot up from a year ago. Home prices are flat or down slightly in most areas. And in January, used-home sales were half of what they were in August, a record month.

"Most of the investors are gone, and traffic is down in home builders' sales trailers," said Jay Butler, director of the Arizona Real Estate Center at Arizona State University Polytechnic. "Just look at all the ads. Builders are trying to move homes fast."

Builders nationwide regularly construct a few spec homes for buyers who need a house quickly. But several Valley builders have more spec homes now because even as the market slowed late last year, they continued to speculate that demand would be high, so they kept putting up houses.

There are about 2,800 more empty new homes Valley-wide than a year ago, according to Metrostudy, a real estate consulting firm.

"It's been years since we have seen any unsold inventory like this in Phoenix's new-home market," said John Burns, a national real estate consultant. "Too many builders went too far out and built houses that were too expensive."

Too many empty spec homes could hurt builders' profits and pull down all home prices throughout the Valley as other sellers adjust their prices to remain competitive.

Phoenix's new-home market runs on a formula where builders move farther out, stretching the city's fringes, where cheap land and low city fees keep prices in check. But builders now are pushing the threshold of how much buyers will pay and how far they will commute.

The result? Empty houses and killer deals.

"There's no question the overall marketplace has changed," said analyst RL Brown, publisher of the Phoenix Housing Market Letter. "The consumer is saying, 'Excuse me. The prices are too high.' "

Some houses are empty because most of the investors, who snatched up three or four new homes at time a year ago, have moved on or see the market slowing and are willing to walk away from deposits. Others are empty because buyers who signed deals that were contingent on them selling other houses are unable to sell now that the market has slowed.

Metrostudy estimates the current supply of spec homes will be sold within two months. The supply of unsold homes nationally would take five months to sell.

Brown thinks most builders won't moan about buyers who walk away from deals since they can resell the houses at the prices that are much higher than when the original buyer signed the contract.

"The builders would consider it a windfall," Brown said.

Builders can cut prices by thousands of dollars on spec homes and still make a profit. A company that upped the price of a model by $150,000 in 2005, can sell it for $50,000 less pretty easily, Burns said.

But for many builders, it is not just about turning a profit. After a year of record sales figures, there is pressure to improve - especially for the public companies. For them, just keeping pace with what they did last year is not enough.

"It's all about numbers," said Doug Fulton, president of Fulton Homes Sales Corp. "They have to keep the building profit machine moving. But division presidents have a hard act to follow after. We were all fishing with dynamite last year."

Fulton sees a market for spec homes because other builders are dumping their spec inventory and will be reluctant to build as they wait to see how much the market slows. He thinks there will still be demand from buyers who want to move in quickly. His company recently started about 300 spec homes.

"I couldn't be in a better position to take this risk," he said.

Builders trying to move these homes are offering deals now, but the bargains may not last.

Meritage Homes, which had a 48-hour sale in two East Valley subdivisions last weekend, typically starts building about 10 percent of its homes without a buyer, Chief Financial Officer Larry Seay said.

Promotions, he said, are a "rifle shot rather than a shotgun approach" to unloading slow-moving inventory.

"The market is not as hot as it was," Seay said. "It's transitioning from white-hot to something that is a little more normal. That doesn't mean the market is bad."

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Housing in Phoenix barely nabs top market

Cooling prices up 48.9% in '05

By Catherine Reagor - The Arizona Republic
Feb. 16, 2006

Metropolitan Phoenix's housing market is cooling, but it still managed - barely - to snag the title of the nation's hot spot for home price gains in 2005.

But judging by what has happened to the previous two titleholders, that could be more of a bother than a blessing.

Las Vegas, which grabbed the 2004 title with housing-price gains of almost 50 percent, last year saw the price of existing homes grow by only 12 percent, according to figures released Wednesday by the National Association of Realtors. And San Diego, winner of the 2003 title with price gains of more than 30 percent, had increases last year of just under 7 percent.

In the Valley, 2005 housing prices soared 48.9 percent above 2004 levels, according to the Realtors' report. But that growth was fueled by record increases in the first half of the year. By the end of the fourth quarter, prices had risen less than 1 percent - that's $400 - from where they were at the end of the third quarter.

The report is just the latest sign of a slowdown in what had been a sizzling market, where houses could sell in a day for thousands of dollars above the asking price, often to an investor who had never seen the property.

"There are sellers who think the frenzy from last year is still going on, and they can inflate their prices," said Margie O'Campo de Castillo, past president of the Phoenix chapter of the Hispanic Association of Real Estate Professionals and head of Arizona Dream Realty. "But they aren't getting the offers they want, and their homes are sitting on the market."

The scene is much the same across the country, particularly in areas where large price increases were fueled by heavy investor activity.

The investor buying-spree started in Southern California, particularly in San Diego, in 2002. After prices skyrocketed in those areas, many of the same speculative buyers cashed out and flocked to Las Vegas. By early 2005, investors had found metropolitan Phoenix.

They also have found Florida, which had four of the nation's top housing markets last year. The Cape Coral/Ft. Myers area was right behind the Valley, with a 48 percent increase in home prices. Tampa tied with Tucson for the No. 5 slot.

But several of the Sunshine State's top markets also are seeing a tapering of prices. Orlando, like Phoenix, saw prices rise less than 1 percent in the fourth quarter.

David Lereah, chief economist for the National Association of Realtors, said the dip nationally is an early sign of a market adjustment. Housing analysts say the adjustment will be bigger and more painful on the coasts, where home prices are much higher.

The New Orleans area, ravaged by Hurricane Katrina, surprised many by posting a 29 percent jump in home prices.

Investors betting on the area's recovery, largely funded by the federal government, are behind some of the Louisiana city's recent housing appreciation.

In the Valley, the median price of an existing Valley home fell last month to $257,000 from $260,000 in December. And 5,260 existing Valley homes changed hands in January, compared with a record high of 10,700 in August, according to the Arizona Real Estate Center at Arizona State University Polytechnic. The pace of sales has slowly been tapering off since fall. There were 6,480 resales in December.

As early as September, home prices had begun to surpass appraisals, and investors began to sell in droves.

Jay Butler, director of the Real Estate Center, said it's still unclear how big of an overall impact investors had on the Valley's housing market and how much their departure will hurt it.

He estimates speculators inflated metropolitan Phoenix home prices by as much as 25 percent in 2005.

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Casey Ross
Century 21
623-326-4132
caseyross@cox.net

Arizona Homeowner Tips

2006-03-29T00:12:00.000-07:00

We are proud to provide Arizona Homeowners and prospective Arizona homebuyers with our FREE Homeowner's Tips Brochure. With our partner, Old Republic Home Warranty, we have developed a great tips brochure for you to view online, or print out at your convenience. Please click here to view the brochure (Formatted in Adobe .PDF).

If you would like a copy sent to you, please email us or call Casey and Trisha Ross, Century 21 Centre Point at 623-326-4132 or 623-326-4128.

Please Visit our Website to search for Arizona Homes for sale, Arizona school, state and county information.

Closing Costs in Arizona Real Estate

2006-03-22T14:02:00.000-07:00

Closing Costs
The bundle of fees associated with the buying or selling of a home are called closing costs. Certain fees are automatically assigned to either the buyer or the seller; other costs are either negotiable or dictated by local custom.

Buyer closing costs (Generally 3% of the purchase price of the home)

When a buyer applies for a loan, lenders are required to provide them with a good-faith estimate of their closing costs. The fees vary according to several factors, including the type of loan they applied for and the terms of the purchase agreement. Likewise, some of the closing costs, especially those associated with the loan application, are actually paid in advance. Some typical buyer closing costs include:

The down payment
Loan fees (points, application fee, credit report)
Prepaid interest
Inspection fees
Appraisal
Mortgage insurance
Hazard insurance
Title insurance
Documentary stamps on the note

Seller closing costs (Title closing costs are generally 1.5 to 2% of the sales price, this does not include realtor commissions.)

If the seller has not yet paid for the house in full, the seller's most important closing cost is satisfying the remaining balance of their loan. Before the date of closing, the escrow officer will contact the seller's lender to verify the amount needed to close out the loan. Then, along with any other fees, the original loan will be paid for at the closing before the seller receives any proceeds from the sale. Other seller closing costs can include:

Broker's commission
Transfer taxes
Documentary Stamps on the Deed
Title insurance
Property taxes (prorated)
Negotiating Closing Costs

In addition to the sales price, buyers and sellers frequently include closing costs in their negotiations. This can be for both major and minor fees. For example, if a buyer is particularly nervous about the condition of the plumbing, the seller may agree to pay for the house inspection.

Likewise, a buyer may want to save on up-front expenditures, and so agree to pay the seller's full asking price in return for the seller paying all the allowable closing costs. There's no right or wrong way to negotiate closing costs; just be sure all the terms are written down on the Arizona purchase agreement.

Prorations
At the closing, certain costs are often prorated (or distributed) between buyer and seller. The most common prorations are for property taxes. This is because property taxes are typically paid at the end of the year for which they were assessed.

Thus, if a house is sold in June, the sellers will have lived in the house for half the year, but the bill for the taxes won't come due until the following year! To make this situation more equitable, the taxes are prorated. In this example, the sellers will credit the buyers for half the taxes at closing.

Best regards,
Casey and Trisha Ross
Century 21 Centre Point
Cell: 623-326-4132 or 623-326-4128
Email
Web

Selling your home? Become vocal!

2006-03-13T23:09:00.000-07:00

ACCORDING TO SELLERS,
SILENCE ISN'T ALWAYS 'GOLDEN'
By Casey Ross
Century 21-Centre Point
Cell: 623-326-4132
Web

When trying to sell a home, silence isn't always golden especially when you're expecting your real estate agent to call. In fact, it's one of the leading complaints among sellers in the real estate market. Often times you find an agent who is more than willing to take on your listing, but once the relationship is made, the seller enjoys getting a call at least once a week.

"A seller should establish with the agent up front the expectation that regular communication will occur. Even if it's just to check-in, the seller will be more satisfied being kept 'in the loop'," said (BROKER/OWNER FULL NAME), (FIRM NAME).

Keeping the communication lines open between the two parties assures the seller that the agent is keeping them apprised of any and all offers. In addition, agents often provide valuable tips on why prospective buyers weren't interested. Often times, an agent is privy to the buyer's dislikes of the property. For instance 'this room's too dark' or 'the kitchen has a funny smell.' This allows the agent to give the seller constructive feedback and offer important tips on how to make the home more attractive to future buyers.

If you're a seller and are not hearing from your broker, be sure to keep calling them until they get the message that you expect a regular update. If the broker doesn't return your calls, leave a message for your broker's office manager. The manager will see to it that your broker becomes more attentive to your listing.

Selling a home can be a lot of work and sometimes quite stressful. It is incumbent upon an agent to satisfy the seller's expectations of routine updates, this will ensure the possibility of future business not to mention a successful sale. Furthermore, as a seller you must demand the communication exchange between you and your agent. If both parties work in a cooperative effort, the selling experience will be more successful and enjoyable for both the agent and the seller involved.

Century 21 Real Estate Corporation is the franchisor of the world's largest residential real estate sales organization, with more than 6,300 independently owned and operated franchised broker offices in more than 25 countries and territories worldwide. Century 21 Real Estate Corporation is a subsidiary of Cendant Corporation (NYSE: CD).

If you are ready to sell your home, please contact:
By Casey Ross
Century 21-Centre Point
Cell: 623-326-4132
Web

Real Estate Terms

2006-03-04T11:55:00.000-07:00

UNDERSTANDING REAL ESTATE TERMINOLOGY
Casey Ross
Century 21 Centre Point
Cell: 623-326-4132
Web
Email

Purchasing a home can be a complicated and confusing process, especially for first-time buyers. Throughout the process, first-time home buyers will encounter a variety of unfamiliar real state terms. There are several key terms associates with purchasing real estate that are helpful to learn.

For example, many buyers confuse the terms broker and salesperson. A broker is a properly licensed individual, or corporation, who serves as a special agent in the purchase and sale of real estate, a salesperson is an individual employed or associated by written agreement by the broker as an independent contractor. The salesperson facilitates the purchase or sale of real estate.

Once you decide to purchase, a salesperson will prepare a sales contract to present to the seller along with your earnest money deposit. The sales contract is the document through which the seller agrees to give possession and title of property to the buyer upon full payment of the purchase price and performance of agreed-upon conditions. The earnest money is a buyer’s partial payment, as a show of good faith, to make the contract binding. Often, the earnest money is held in an escrow account. Escrow is the process by which money is held by a disinterested party until the terms of the escrow instructions are fulfilled.

After the buyer and seller have signed the contract, the buyer must obtain a mortgage note by presenting the contract to a mortgage lender. The note is the buyer’s promise to pay the purchase price of the real estate in addition to a stated interest rate over a specified period of time. A mortgage lender places a lien on the property, or mortgage, and this secures the mortgage note.

The buyer pays interest money to the lender exchange for the use of money borrowed. Interest is usually referred to as APR or annual percentage rate. Interest is paid on the principle, the capital sum the buyer owes. Interest payments may be disguised in the form of points. Points are an up-front cost which may be paid by either the buyer or seller or both in conventional loans.
In general, there are two types of conventional loans that a buyer can obtain. A fixed rate loan has the same rate of interest for the life of the loan, usually 14 to 30 years. An adjustable rate loan or adjustable rate mortgage (ARM) provides a discounted initial rate, which changes after a set period of time. The rate can’t exceed the interest rate cap or ceiling allowed on such loans for any one adjustment period. Some ARMs have a lifetime cap on interest. The buyer makes the loan and interest payments to the lender through amortization, the systematic payment and retirement of debt over a set period of time.

Once the contract has been signed and a mortgage note obtained, the buyer and seller must legally close the real estate transaction. The closing is a meeting where the buyer, seller and their attorneys review, sign and exchange the final documents. At the closing, the buyer receives the appraisal report, an estimate of the property’s value with the appraiser’s signature, certification and sporting documents. The buyer also receives the title and the deed. The title shows evidence of the buyer’s ownership of the property while the deed legally transfers the title from the seller to the buyer. The final document the buyer receives at closing is a title insurance policy, insurance against the loss of the title if it’s found to be imperfect.

Buyers should plan on a least four to eight weeks for a typical real estate transaction. The process is difficult and at times, intimidating. A general understanding of real estate terminology and chronology of the transaction, however, will help any real estate novice to confidently buy his or her first home.

Best regards,
Casey Ross
Century 21 Centre Point
Cell: 623-326-4132
Web
Email

Real Estate Investing

2006-03-03T15:13:00.000-07:00

AVOIDING A BAD INVESTMENT
IS EASIER THAN YOU MIGHT THINK

By Casey Ross, Century 21 Centre Point
Phoenix, Arizona
Cell: 623-326-4132 or 623-326-4128
www.c21rossteam.com
Email us

Human nature being what it is, none of us can get serious about the idea of buying a house without experiencing at least a few small twinges of worry. What we fear, of course, is making a mistake. And the mistake we tend to fear most is buying a “lemon” – a house that doesn’t simply fail to satisfy our hopes but turns out to have so many flaws that it’s a disastrously bad investment.
The good news is that the danger of getting stuck with a lemon of a house is one of the most easily avoided dangers in the whole universe of personal finance. Prospective homebuyers are protected in many ways, and they can further strengthen their defenses by taking a few simple, commonsensical precautionary steps.
The first of your protections is the fact that in many places sellers are required by law to make problems known to potential buyers – and are liable under the law if they fail to make adequate disclosure.
For obvious reasons, however, most of us prefer to steer clear of legal entanglements even when the law is on our side. In the housing market we do this by identifying problems before closing the deal. And identifying problems isn’t necessarily all that difficult. Even a person who’s not an electrician or plumber or construction expert often can identify areas of potential concern simply by being alert when visiting a house that’s on the market.
It’s a simple matter, for example, to turn on faucets and showers to test water pressure. In a bathroom it’s a simple matter to turn on the hot water both at the sink and in the shower at the same time and then flush the toilet and watch for drastic drops in pressure or temperature. This is highly likely to produce evidence of whatever problems are lurking in the plumbing system.
Most homes should provides at least 200 amps of electrical power, and it’s usually possible to confirm this simply by checking the numbers on the circuit-breaker panel. Check, too, for extra-heavy 220 –volt outlets where they’re needed for a washer, dryer and other heavy appliances – and for the grounded three-prong outlets needed for computers and power tools.
A house that’s been standing for years but still has straight walls and ceilings and remains free of cracks and the stains that indicate leaks is likely to be structurally sound.
Are the basement walls damp(if applicable) – or even wet? Have termites left their calling cards – tubes or tunnels where the walls touch the ground, or wood debris around baseboards?
Wherever you see such things, things that you wonder about because you don’t understand them or wouldn’t expect to find them in a completely sound structure, you can be confident that it’s time for further examination. Keep an open mind about what that further examination might lead to , however. Things that can look like big trouble to the amateur eye sometimes turn out to be quite trivial when an expert checks them out.
The word “expert” is a crucially important one to remember. Ultimately, before closing on the house of your choice, you should have it inspected by a professional – one who has solid credentials and a solid reputation and whose work is guaranteed. Your purchase should be contingent on the results of the inspection. The Arizona Association of Realtors Residential Purchase Contract is contingent upon these results. We can help you make all this happen, thereby reducing your risk to the vanishing point. It is a not a matter of when you find a home to purchase, it is a matter of when you find a home that YOU are happy with and secure with that does. In addition, it costs you nothing to utilize the services of a realtor when purchasing a home.

Best regards and luck,
Casey Ross
Century 21 Centre Point
Cell: 623-326-4132
www.c21rossteam.com
Email us

Tax Time!

2006-03-02T17:19:00.000-07:00

What You Can and Cannot Deduct
To deduct expenses of owning a home, you must file Form 1040 and itemize your deductions on Schedule A (Form 1040). If you itemize, you cannot take the standard deduction. See the Form 1040 instructions if you have questions about whether to itemize your deductions or claim the standard deduction.

This section explains what expenses you can deduct as a homeowner. It also points out expenses that you cannot deduct. There are two primary discussions: taxes and home mortgage interest. Generally, your real estate taxes and home mortgage interest are included in your house payment.

Your house payment. If you took out a mortgage (loan) to finance the purchase of your home, you probably have to make monthly house payments. Your house payment may include several costs of owning a home. The only costs you can deduct are real estate taxes actually paid to the taxing authority and interest that qualifies as home mortgage interest. These are discussed in more detail later.

Here are some expenses, which may be included in your house payment, that cannot be deducted.
Fire or homeowner's insurance premiums.

FHA or other mortgage insurance premiums.

The amount applied to reduce the principal of the mortgage.

Minister's or military housing allowance. If you are a minister or a member of the uniformed services and receive a housing allowance that is not taxable, you still can deduct your real estate taxes and your home mortgage interest. You do not have to reduce your deductions by your nontaxable allowance.

Nondeductible payments. You cannot deduct any of the following items.
Insurance, including fire and comprehensive coverage, and title and mortgage insurance.

Wages you pay for domestic help.

Depreciation.

The cost of utilities, such as gas, electricity, or water.

Most settlement costs. See Settlement or closing costs under Cost as Basis, later, for more information.

Real Estate Taxes
Most state and local governments charge an annual tax on the value of real property. This is called a real estate tax. You can deduct the tax if it is based on the assessed value of the real property and the taxing authority charges a uniform rate on all property in its jurisdiction. The tax must be for the welfare of the general public and not be a payment for a special privilege granted or service rendered to you.

Deductible Real Estate Taxes
You can deduct real estate taxes imposed on you. You must have paid them either at settlement or closing, or to a taxing authority (either directly or through an escrow account) during the year. If you own a cooperative apartment, see Special Rules for Cooperatives, later.

Where to deduct real estate taxes. Enter the amount of your deductible real estate taxes on Schedule A (Form 1040), line 6.

Real estate taxes paid at settlement or closing. Real estate taxes are generally divided so that you and the seller each pay taxes for the part of the property tax year you owned the home. Your share of these taxes is fully deductible, if you itemize your deductions.

Division of real estate taxes. For federal income tax purposes, the seller is treated as paying the property taxes up to, but not including, the date of sale. You (the buyer) are treated as paying the taxes beginning with the date of sale. This applies regardless of the lien dates under local law. Generally, this information is included on the settlement statement you get at closing.

You and the seller each are considered to have paid your own share of the taxes, even if one or the other paid the entire amount. You each can deduct your own share, if you itemize deductions, for the year the property is sold.

Example.

You bought your home on September 1. The property tax year (the period to which the tax relates) in your area is the calendar year. The tax for the year was $730 and was due and paid by the seller on August 15.

You owned your new home during the property tax year for 122 days (September 1 to December 31, including your date of purchase). You figure your deduction for real estate taxes on your home as follows.

1. Enter the total real estate taxes for the real property tax year $730
2. Enter the number of days in the property tax year that you owned the property 122
3. Divide line 2 by 365 .3342
4. Multiply line 1 by line 3. This is your deduction. Enter it on Schedule A (Form 1040), line 6 $244

You can deduct $244 on your return for the year if you itemize your deductions. You are considered to have paid this amount and can deduct it on your return even if, under the contract, you did not have to reimburse the seller.

Delinquent taxes. Delinquent taxes are unpaid taxes that were imposed on the seller for an earlier tax year. If you agree to pay delinquent taxes when you buy your home, you cannot deduct them. You treat them as part of the cost of your home. See Real estate taxes, later, under Cost as Basis.

Escrow accounts. Many monthly house payments include an amount placed in escrow (put in the care of a third party) for real estate taxes. You may not be able to deduct the total you pay into the escrow account. You can deduct only the real estate taxes that the lender actually paid from escrow to the taxing authority. Your real estate tax bill will show this amount.

Refund or rebate of real estate taxes. If you receive a refund or rebate of real estate taxes this year for amounts you paid this year, you must reduce your real estate tax deduction by the amount refunded to you. If the refund or rebate was for real estate taxes paid for a prior year, you may have to include some or all of the refund in your income. For more information, see Recoveries in Publication 525, Taxable and Nontaxable Income.

Items You Cannot Deduct as Real Estate Taxes
The following items are not deductible as real estate taxes.

Charges for services. An itemized charge for services to specific property or people is not a tax, even if the charge is paid to the taxing authority. You cannot deduct the charge as a real estate tax if it is:
A unit fee for the delivery of a service (such as a $5 fee charged for every 1,000 gallons of water you use),

A periodic charge for a residential service (such as a $20 per month or $240 annual fee charged for trash collection), or

A flat fee charged for a single service provided by your local government (such as a $30 charge for mowing your lawn because it had grown higher than permitted under a local ordinance).

You must look at your real estate tax bill to decide if any nondeductible itemized charges, such as those listed above, are included in the bill. If your taxing authority (or lender) does not furnish you a copy of your real estate tax bill, ask for it.

Assessments for local benefits. You cannot deduct amounts you pay for local benefits that tend to increase the value of your property. Local benefits include the construction of streets, sidewalks, or water and sewer systems. You must add these amounts to the basis of your property.

You can, however, deduct assessments (or taxes) for local benefits if they are for maintenance, repair, or interest charges related to those benefits. An example is a charge to repair an existing sidewalk and any interest included in that charge.

If only a part of the assessment is for maintenance, repair, or interest charges, you must be able to show the amount of that part to claim the deduction. If you cannot show what part of the assessment is for maintenance, repair, or interest charges, you cannot deduct any of it.

An assessment for a local benefit may be listed as an item in your real estate tax bill. If so, use the rules in this section to find how much of it, if any, you can deduct.

Transfer taxes (or stamp taxes). You cannot deduct transfer taxes and similar taxes and charges on the sale of a personal home. If you are the buyer and you pay them, include them in the cost basis of the property. If you are the seller and you pay them, they are expenses of the sale and reduce the amount realized on the sale.

Homeowners association assessments. You cannot deduct these assessments because the homeowners association, rather than a state or local government, imposes them.

Special Rules for Cooperatives
If you own a cooperative apartment, some special rules apply to you, though you generally receive the same tax treatment as other homeowners. As an owner of a cooperative apartment, you own shares of stock in a corporation that owns or leases housing facilities. You can deduct your share of the corporation's deductible real estate taxes if the cooperative housing corporation meets all of the following conditions.

The corporation has only one class of stock outstanding.

Each stockholder, solely because of ownership of the stock, can live in a house, apartment, or house trailer owned or leased by the corporation.

No stockholder can receive any distribution out of capital, except on a partial or complete liquidation of the corporation.

The tenant-stockholders pay at least 80% of the corporation's gross income for the tax year. For this purpose, gross income means all income received during the entire tax year, including any received before the corporation changed to cooperative ownership.

Tenant-stockholders. A tenant-stockholder can be any entity (such as a corporation, trust, estate, partnership, or association) as well as an individual. The tenant-stockholder does not have to live in any of the cooperative's dwelling units. The units that the tenant-stockholder has the right to occupy can be rented to others.

Deductible taxes. You figure your share of real estate taxes in the following way.
Divide the number of your shares of stock by the total number of shares outstanding, including any shares held by the corporation.

Multiply the corporation's deductible real estate taxes by the number you figured in (1). This is your share of the real estate taxes.

Generally, the corporation will tell you your share of its real estate tax. This is the amount you can deduct if it reasonably reflects the cost of real estate taxes for your dwelling unit.

Refund of real estate taxes. If the corporation receives a refund of real estate taxes it paid in an earlier year, it must reduce the amount of real estate taxes paid this year when it allocates the tax expense to you. Your deduction for real estate taxes the corporation paid this year is reduced by your share of the refund the corporation received.

Sales Taxes
Generally, you can elect to deduct state and local general sales taxes instead of state and local income taxes as an itemized deduction on Schedule A (Form 1040). Deductible sales taxes may include sales taxes paid on your home (including mobile and prefabricated), or home building materials if the tax rate was the same as the general sales tax rate. For information on figuring your deduction, see the Instructions for Schedule A (Form 1040).

If you elect to deduct the sales taxes paid on your home, or home building materials, you cannot include them as part of your cost basis in the home.

Home Mortgage Interest
This section of the publication gives you basic information about home mortgage interest, including information on interest paid at settlement, points, and Form 1098, Mortgage Interest Statement.

Most home buyers take out a mortgage (loan) to buy their home. They then make monthly payments to either the mortgage holder or someone collecting the payments for the mortgage holder. (See Your house payment, earlier, under What You Can and Cannot Deduct.)

Usually, you can deduct the entire part of your payment that is for mortgage interest, if you itemize your deductions on Schedule A (Form 1040). However, your deduction may be limited if:

Your total mortgage balance is more than $1 million ($500,000 if married filing separately), or

You took out a mortgage for reasons other than to buy, build, or improve your home.

If either of these situations applies to you, you will need to get Publication 936. You also may need Publication 936 if you later refinance your mortgage or buy a second home.

Refund of home mortgage interest. If you receive a refund of home mortgage interest that you deducted in an earlier year and that reduced your tax, you generally must include the refund in income in the year you receive it. For more information, see Recoveries in Publication 525. The amount of the refund will usually be shown on the mortgage interest statement you receive from your mortgage lender. See Mortgage Interest Statement, later.

Deductible Mortgage Interest
To be deductible, the interest you pay must be on a loan secured by your main home or a second home. The loan can be a first or second mortgage, a home improvement loan, or a home equity loan.

Prepaid interest. If you pay interest in advance for a period that goes beyond the end of the tax year, you must spread this interest over the tax years to which it applies. You can deduct in each year only the interest that qualifies as home mortgage interest for that year. However, there is an exception that applies to points, discussed later.

Late payment charge on mortgage payment. You can deduct as home mortgage interest a late payment charge if it was not for a specific service in connection with your mortgage loan.

Mortgage prepayment penalty. If you pay off your home mortgage early, you may have to pay a penalty. You can deduct that penalty as home mortgage interest provided the penalty is not for a specific service performed or cost incurred in connection with your mortgage loan.

Ground rent. In some states (such as Maryland), you may buy your home subject to a ground rent. A ground rent is an obligation you assume to pay a fixed amount per year on the property. Under this arrangement, you are leasing (rather than buying) the land on which your home is located.

Redeemable ground rents. If you make annual or periodic rental payments on a redeemable ground rent, you can deduct the payments as mortgage interest. The ground rent is a redeemable ground rent only if all of the following are true.
Your lease, including renewal periods, is for more than 15 years.

You can freely assign the lease.

You have a present or future right (under state or local law) to end the lease and buy the lessor's entire interest in the land by paying a specified amount.

The lessor's interest in the land is primarily a security interest to protect the rental payments to which he or she is entitled.

Payments made to end the lease and buy the lessor's entire interest in the land are not redeemable ground rents. You cannot deduct them.

Nonredeemable ground rents. Payments on a nonredeemable ground rent are not mortgage interest. You can deduct them as rent only if they are a business expense or if they are for rental property.

Cooperative apartment. You can usually treat the interest on a loan you took out to buy stock in a cooperative housing corporation as home mortgage interest if you own a cooperative apartment and the cooperative housing corporation meets the conditions described earlier under Special Rules for Cooperatives. In addition, you can treat as home mortgage interest your share of the corporation's deductible mortgage interest. Figure your share of mortgage interest the same way that is shown for figuring your share of real estate taxes in the Example under Division of real estate taxes. For more information on cooperatives, see Special Rule for Tenant-Stockholders in Cooperative Housing Corporations in Publication 936.

Refund of cooperative's mortgage interest. You must reduce your mortgage interest deduction by your share of any cash portion of a patronage dividend that the cooperative receives. The patronage dividend is a partial refund to the cooperative housing corporation of mortgage interest it paid in a prior year.

If you receive a Form 1098 from the cooperative housing corporation, the form should show only the amount you can deduct.

This image is too large to be displayed in the current screen. Please click the link to view the image.
Figure A. Are my points fully deductible this year?

Mortgage Interest Paid at Settlement
One item that normally appears on a settlement or closing statement is home mortgage interest.

You can deduct the interest that you pay at settlement if you itemize your deductions on Schedule A (Form 1040). This amount should be included in the mortgage interest statement provided by your lender. See the discussion under Mortgage Interest Statement, later. Also, if you pay interest in advance, see Prepaid interest, earlier, and Points, next.

Points
The term “points” is used to describe certain charges paid, or treated as paid, by a borrower to obtain a home mortgage. Points also may be called loan origination fees, maximum loan charges, loan discount, or discount points.

A borrower is treated as paying any points that a home seller pays for the borrower's mortgage. See Points paid by the seller, later.

General rule. You cannot deduct the full amount of points in the year paid. They are prepaid interest, so you generally must deduct them over the life (term) of the mortgage.

Exception. You can deduct the full amount of points in the year paid if you meet all the following tests.
Your loan is secured by your main home. (Generally, your main home is the one you live in most of the time.)

Paying points is an established business practice in the area where the loan was made.

The points paid were not more than the points generally charged in that area.

You use the cash method of accounting. This means you report income in the year you receive it and deduct expenses in the year you pay them. Most individuals use this method.

The points were not paid in place of amounts that ordinarily are stated separately on the settlement statement, such as appraisal fees, inspection fees, title fees, attorney fees, and property taxes.

The funds you provided at or before closing, plus any points the seller paid, were at least as much as the points charged. The funds you provided do not have to have been applied to the points. They can include a down payment, an escrow deposit, earnest money, and other funds you paid at or before closing for any purpose. You cannot have borrowed these funds from your lender or mortgage broker.

You use your loan to buy or build your main home.

The points were computed as a percentage of the principal amount of the mortgage.

The amount is clearly shown on the settlement statement (such as the Uniform Settlement Statement, Form HUD-1) as points charged for the mortgage. The points may be shown as paid from either your funds or the seller's.

Note.
If you meet all of the tests listed above and you itemize your deductions in the year you get the loan, you can either deduct the full amount of points in the year paid or deduct them over the life of the loan, beginning in the year you get the loan. If you do not itemize your deductions in the year you get the loan, you can spread the points over the life of the loan and deduct the appropriate amount in each future year, if any, when you do itemize your deductions.

Home improvement loan. You can also fully deduct in the year paid points paid on a loan to improve your main home, if you meet the first six tests listed earlier.

Refinanced loan. If you use part of the refinanced mortgage proceeds to improve your main home and you meet the first six tests listed earlier, you can fully deduct the part of the points related to the improvement in the year you paid them with your own funds. You can deduct the rest of the points over the life of the loan.

Points not fully deductible in year paid. If you do not qualify under the exception to deduct the full amount of points in the year paid (or choose not to do so), see Points in chapter 5 of Publication 535, Business Expenses, for the rules on when and how much you can deduct.

Figure A. You can use Figure A as a quick guide to see whether your points are fully deductible in the year paid.

Amounts charged for services. Amounts charged by the lender for specific services connected to the loan are not interest. Examples of these charges are:
Appraisal fees,

Notary fees,

Preparation costs for the mortgage note or deed of trust,

Mortgage insurance premiums, and

VA funding fees.

You cannot deduct these amounts as points either in the year paid or over the life of the mortgage. For information about the tax treatment of these amounts and other settlement fees and closing costs, see Basis, later.

Points paid by the seller. The term points includes loan placement fees that the seller pays to the lender to arrange financing for the buyer.

Treatment by seller. The seller cannot deduct these fees as interest; but, they are a selling expense that reduces the seller's amount realized. See Publication 523 for more information.

Treatment by buyer. The buyer treats seller-paid points as if he or she had paid them. If all the tests under Exception (discussed earlier) are met, the buyer can deduct the points in the year paid. If any of those tests are not met, the buyer must deduct the points over the life of the loan.

The buyer must also reduce the basis of the home by the amount of the seller-paid points. For more information about the basis of your home, see Basis, later.

Funds provided are less than points. If you meet all the tests under Exception (discussed earlier) except that the funds you provided were less than the points charged to you (test 6), you can deduct the points in the year paid up to the amount of funds you provided. In addition, you can deduct any points paid by the seller.

Example 1.

When you took out a $100,000 mortgage loan to buy your home in December, you were charged one point ($1,000). You meet all the tests for deducting points in the year paid (see Exception), except the only funds you provided were a $750 down payment. Of the $1,000 you were charged for points, you can deduct $750 in the year paid. You spread the remaining $250 over the life of the mortgage.

Example 2.

The facts are the same as in Example 1, except that the person who sold you your home also paid one point ($1,000) to help you get your mortgage. In the year paid, you can deduct $1,750 ($750 of the amount you were charged plus the $1,000 paid by the seller). You spread the remaining $250 over the life of the mortgage. You must reduce the basis of your home by the $1,000 paid by the seller.

Excess points. If you meet all the tests under Exception except that the points paid were more than are generally charged in your area (test 3), you can deduct in the year paid only the points that are generally charged. You must spread any additional points over the life of the mortgage.

Mortgage ending early. If you spread your deduction for points over the life of the mortgage, you can deduct any remaining balance in the year the mortgage ends. A mortgage may end early due to a prepayment, refinancing, foreclosure, or similar event.

Example.

Dan paid $3,000 in points in 1998 that he had to spread out over the 15-year life of the mortgage. He had deducted $1,400 of these points through 2004.

Dan prepaid his mortgage in full in 2005. He can deduct the remaining $1,600 of points in 2005.

Exception. If you refinance the mortgage with the same lender, you cannot deduct any remaining points for the year. Instead, deduct them over the term of the new loan.

Form 1098. The mortgage interest statement you receive should show not only the total interest paid during the year, but also your deductible points paid during the year. See Mortgage Interest Statement, later.

Where To Deduct Home Mortgage Interest
Enter on Schedule A (Form 1040), line 10, the home mortgage interest and points reported to you on Form 1098 (discussed next). If you did not receive a Form 1098, enter your deductible interest on line 11, and any deductible points on line 12. See Table 1 for a summary of where to deduct home mortgage interest and real estate taxes.

If you paid home mortgage interest to the person from whom you bought your home, show that person's name, address, and social security number (SSN) or employer identification number (EIN) on the dotted lines next to line 11. The seller must give you this number and you must give the seller your SSN. Form W-9, Request for Taxpayer Identification Number and Certification, can be used for this purpose. Failure to meet either of these requirements may result in a $50 penalty for each failure.

Mortgage Interest Statement
If you paid $600 or more of mortgage interest (including certain points) during the year on any one mortgage to a mortgage holder in the course of that holder's trade or business, you should receive a Form 1098 or similar statement from the mortgage holder. The statement will show the total interest paid on your mortgage during the year. If you bought a main home during the year, it also will show the deductible points you paid and any points you can deduct that were paid by the person who sold you your home. See Points, earlier.

The interest you paid at settlement should be included on the statement. If it is not, add the interest from the settlement sheet that qualifies as home mortgage interest to the total shown on Form 1098 or similar statement. Put the total on Schedule A (Form 1040), line 10, and attach a statement to your return explaining the difference. Write “See attached” to the right of line 10.

A mortgage holder can be a financial institution, a governmental unit, or a cooperative housing corporation. If a statement comes from a cooperative housing corporation, it generally will show your share of interest.

Your mortgage interest statement for 2005 should be sent to you by January 31, 2006. A copy of this form will be sent to the IRS also.

Example.

You bought a new home on May 3. You paid no points on the purchase. During the year, you made mortgage payments which included $4,480 deductible interest on your new home. The settlement sheet for the purchase of the home included interest of $620 for 29 days in May. The mortgage statement you receive from the lender includes total interest of $5,100 ($4,480 + $620). You can deduct the $5,100 if you itemize your deductions.

Refund of overpaid interest. If you receive a refund of mortgage interest you overpaid in a prior year, you generally will receive a Form 1098 showing the refund in box 3. Generally, you must include the refund in income in the year you receive it. See Refund of home mortgage interest, earlier, under Home Mortgage Interest.

More than one borrower. If you and at least one other person (other than your spouse if you file a joint return) were liable for and paid interest on a mortgage that was for your home, and the other person received a Form 1098 showing the interest that was paid during the year, attach a statement to your return explaining this. Show how much of the interest each of you paid, and give the name and address of the person who received the form. Deduct your share of the interest on Schedule A (Form 1040), line 11, and write “See attached” to the right of that line.

Mortgage Interest Credit
The mortgage interest credit is intended to help lower-income individuals afford home ownership. If you qualify, you can claim the credit each year for part of the home mortgage interest you pay.

Who qualifies. You may be eligible for the credit if you were issued a mortgage credit certificate (MCC) from your state or local government. Generally, an MCC is issued only in connection with a new mortgage for the purchase of your main home.

The MCC will show the certificate credit rate you will use to figure your credit. It also will show the certified indebtedness amount. Only the interest on that amount qualifies for the credit. See Figuring the Credit, later.

Table 1. Where To Deduct Interest and Taxes Paid on Your Home

See the text for information on what expenses are eligible.
IF you are eligible to deduct . . . THEN report the amount
on Schedule A (Form 1040) . . .
Real estate taxes line 6
Home mortgage interest and points reported on Form 1098 line 10
Home mortgage interest not reported on Form 1098 line 11
Points not reported on
Form 1098 line 12

You must contact the appropriate government agency about getting an MCC before you get a mortgage and buy your home. Contact your state or local housing finance agency for information about the availability of MCCs in your area.

How to claim the credit. To claim the credit, complete Form 8396 and attach it to your Form 1040. Include the credit in your total for Form 1040, line 54; be sure to check box a on that line.

Reducing your home mortgage interest deduction. If you itemize your deductions on Schedule A (Form 1040), you must reduce your home mortgage interest deduction by the amount of the mortgage interest credit shown on Form 8396, line 3. You must do this even if part of that amount is to be carried forward to 2006.

Selling your home. If you purchase a home after 1990 using an MCC, and you sell that home within 9 years, you may have to recapture (repay) all or part of the benefit you received from the MCC program. For additional information, see Recapturing (Paying Back) a Federal Mortgage Subsidy, in Publication 523.

Figuring the Credit
Figure your credit on Form 8396.

Mortgage not more than certified indebtedness. If your mortgage loan amount is equal to (or smaller than) the certified indebtedness amount shown on your MCC, enter on Form 8396, line 1, all the interest you paid on your mortgage during the year.

Mortgage more than certified indebtedness. If your mortgage loan amount is larger than the certified indebtedness amount shown on your MCC, you can figure the credit on only part of the interest you paid. To find the amount to enter on line 1, multiply the total interest you paid during the year on your mortgage by the following fraction.
Certified indebtedness amount on your MCC
Original amount of your mortgage

The fraction will not change as long as you are entitled to take the mortgage interest credit.

Example.

Emily bought a home this year. Her mortgage loan is $125,000. The certified indebtedness amount on her MCC is $100,000. She paid $7,500 interest this year. Emily figures the interest to enter on Form 8396, line 1, as follows:

$100,000 $125,000 = 80% (.80)

$7,500 x .80 = $6,000

Emily enters $6,000 on Form 8396, line 1. In each later year, she will figure her credit using only 80% of the interest she pays for that year.

Limits
Two limits may apply to your credit.

A limit based on the credit rate, and

A limit based on your tax.

Limit based on credit rate. If the certificate credit rate is higher than 20%, the credit you are allowed cannot be more than $2,000.

Limit based on tax. Your credit (after applying the limit based on the credit rate) generally cannot be more than your regular tax liability on Form 1040, line 44, plus any alternative minimum tax on Form 1040, line 45, minus certain other credits. Use Form 8396 to figure this limit.

Dividing the Credit
If two or more persons (other than a married couple filing a joint return) hold an interest in the home to which the MCC relates, the credit must be divided based on the interest held by each person.

Example.

John and his brother, George, were issued an MCC. They used it to get a mortgage on their main home. John has a 60% ownership interest in the home, and George has a 40% ownership interest in the home. John paid $5,400 mortgage interest this year and George paid $3,600.

The MCC shows a credit rate of 25% and a certified indebtedness amount of $130,000. The loan amount (mortgage) on their home is $120,000. The credit is limited to $2,000 because the credit rate is more than 20%.

John figures the credit by multiplying the mortgage interest he paid this year ($5,400) by the certificate credit rate (25%) for a total of $1,350. His credit is limited to $1,200 ($2,000 × 60%).

George figures the credit by multiplying the mortgage interest he paid this year ($3,600) by the certificate credit rate (25%) for a total of $900. His credit is limited to $800 ($2,000 × 40%).

Table 2. Effect of Refinancing on Your Credit

IF you get a new (reissued) MCC and the amount of your new mortgage is ... THEN the interest you claim on Form 8396, line 1, is * ...`
Smaller than or equal to the certified indebtedness amount on the new MCC All the interest paid during the year on your new mortgage.
Larger than the certified indebtedness amount on the new MCC Interest paid during the year on your new mortgage multiplied by the following fraction.

Certified indebtedness
amount on your new MCC
Original amount of your
mortgage

*The credit using the new MCC cannot be more than the credit using the old MCC.
See New MCC cannot increase your credit.

Carryforward
If your allowable credit is reduced because of the limit based on your tax, you can carry forward the unused portion of the credit to the next 3 years or until used, whichever comes first.

Example.

You receive a mortgage credit certificate from State X. This year, your regular tax liability is $1,100, you owe no alternative minimum tax, and your mortgage interest credit is $1,700. You claim no other credits. Your unused mortgage interest credit for this year is $600 ($1,700 - $1,100). You can carry forward this amount to the next 3 years or until used, whichever comes first.

Credit rate more than 20%. If you are subject to the $2,000 limit because your certificate credit rate is more than 20%, you cannot carry forward any amount more than $2,000 (or your share of the $2,000 if you must divide the credit).

Example.

In the earlier example under Dividing the Credit, John and George used the entire $2,000 credit. The excess $150 for John ($1,350 - $1,200) and $100 for George ($900 - $800) cannot be carried forward to future years, despite the respective tax liabilities for John and George.

Refinancing
If you refinance your original mortgage loan on which you had been given an MCC, you must get a new MCC to be able to claim the credit on the new loan. The amount of credit you can claim on the new loan may change. Table 2 summarizes how to figure your credit if you refinance your original mortgage loan.

An issuer may reissue an MCC after you refinance your mortgage. If you did not get a new MCC, you may want to contact the state or local housing finance agency that issued your original MCC for information about whether you can get a reissued MCC.

Year of refinancing. In the year of refinancing, add the applicable amount of interest paid on the old mortgage and the applicable amount of interest paid on the new mortgage, and enter the total on Form 8396, line 1.

If your new MCC has a credit rate different from the rate on the old MCC, you must attach a statement to Form 8396. The statement must show the calculation for lines 1, 2, and 3 for the part of the year when the old MCC was in effect. It must show a separate calculation for the part of the year when the new MCC was in effect. Combine the amounts from both calculations for line 3, enter the total on line 3 of the form, and write “see attached” on the dotted line.

New MCC cannot increase your credit. The credit that you claim with your new MCC cannot be more than the credit that you could have claimed with your old MCC.

In most cases, the agency that issues your new MCC will make sure that it does not increase your credit. However, if either your old loan or your new loan has a variable (adjustable) interest rate, you will need to check this yourself. In that case, you will need to know the amount of the credit you could have claimed using the old MCC.

There are two methods for figuring the credit you could have claimed. Under one method, you figure the actual credit that would have been allowed. This means you use the credit rate on the old MCC and the interest you would have paid on the old loan.

If your old loan was a variable rate mortgage, you can use another method to determine the credit that you could have claimed. Under this method, you figure the credit using a payment schedule of a hypothetical self-amortizing mortgage with level payments projected to the final maturity date of the old mortgage. The interest rate of the hypothetical mortgage is the annual percentage rate (APR) of the new mortgage for purposes of the Federal Truth in Lending Act. The principal of the hypothetical mortgage is the remaining outstanding balance of the certified mortgage indebtedness shown on the old MCC.

You must choose one method and use it consistently beginning with the first tax year for which you claim the credit based on the new MCC.

As part of your tax records, you should keep your old MCC and the schedule of payments for your old mortgage.

Basis
Basis is your starting point for figuring a gain or loss if you later sell your home, or for figuring depreciation if you later use part of your home for business purposes or for rent.

While you own your home, you may add certain items to your basis. You may subtract certain other items from your basis. These items are called adjustments to basis and are explained later under Adjusted Basis.

It is important that you understand these terms when you first acquire your home because you must keep track of your basis and adjusted basis during the period you own your home. You also must keep records of the events that affect basis or adjusted basis. See Keeping Records, later.

Figuring Your Basis
How you figure your basis depends on how you acquire your home. If you buy or build your home, your cost is your basis. If you receive your home as a gift, your basis is usually the same as the adjusted basis of the person who gave you the property. If you inherit your home from a decedent, the fair market value at the date of the decedent's death is generally your basis. Each of these topics is discussed later.

Fair market value. This is the price at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and who both have a reasonable knowledge of all the necessary facts.

Property transferred from a spouse. If your home is transferred to you from your spouse, or from your former spouse as a result of a divorce, your basis is the same as your spouse's (or former spouse's) adjusted basis just before the transfer. Publication 504, Divorced or Separated Individuals, fully discusses transfers between spouses.

Cost as Basis
The cost of your home, whether you purchased it or constructed it, is the amount you paid for it, including any debt you assumed.

The cost of your home includes most settlement or closing costs you paid when you bought the home. If you built your home, your cost includes most closing costs paid when you bought the land or settled on your mortgage.

If you elect to deduct the sales taxes on the purchase or construction of your home as an itemized deduction on Schedule A (Form 1040), you cannot include the sales taxes as part of your cost basis in the home.

Purchase. The basis of a home you bought is the amount you paid for it. This usually includes your down payment and any debt you assumed. The basis of a cooperative apartment is the amount you paid for your shares in the corporation that owns or controls the property. This amount includes any purchase commissions or other costs of acquiring the shares.

Construction. If you contracted to have your home built on land that you own, your basis in the home is your basis in the land plus the amount you paid to have the home built. This includes the cost of labor and materials, the amount you paid the contractor, any architect's fees, building permit charges, utility meter and connection charges, and legal fees that are directly connected with building your home. If you built all or part of your home yourself, your basis is the total amount it cost you to build it. You cannot include the value of your own labor or any other labor for which you did not pay.

Real estate taxes. Real estate taxes are usually divided so that you and the seller each pay taxes for the part of the property tax year that each owned the home. See the earlier discussion of Real estate taxes paid at settlement or closing, under Real Estate Taxes, to figure the real estate taxes you paid or are considered to have paid.

If you pay any part of the seller's share of the real estate taxes (the taxes up to the date of sale), and the seller did not reimburse you, add those taxes to your basis in the home. You cannot deduct them as taxes paid.

If the seller paid any of your share of the real estate taxes (the taxes beginning with the date of sale), you can still deduct those taxes. Do not include those taxes in your basis. If you did not reimburse the seller, you must reduce your basis by the amount of those taxes.

Table 3. Adjusted Basis

This table lists examples of some items that generally will increase or decrease your basis in your home. It is not intended to be all-inclusive.
Increases to Basis Decreases to Basis
Improvements:
Putting an addition on your home

Replacing an entire roof

Paving your driveway

Installing central air conditioning

Rewiring your home

Assessments for local improvements
(see Assessments for local benefits, under What You Can and Cannot Deduct)

Amounts spent to restore damaged property Insurance or other reimbursement for casualty losses

Deductible casualty loss not covered by insurance

Payments received for easement or right-of-way granted

Depreciation allowed or allowable if home is used for business or rental purposes

Value of subsidy for energy conservation measure excluded from income

Example 1.

You bought your home on September 1. The property tax year in your area is the calendar year, and the tax is due on August 15. The real estate taxes on the home you bought were $1,275 for the year and had been paid by the seller on August 15. You did not reimburse the seller for your share of the real estate taxes from September 1 through December 31. You must reduce the basis of your home by the $426 [(122 ÷ 365) × $1,275] the seller paid for you. You can deduct your $426 share of real estate taxes on your return for the year you purchased your home.

Example 2.

You bought your home on May 3, 2005. The property tax year in your area is the calendar year. The taxes for the previous year are assessed on January 2 and are due on May 31 and November 30. Under state law, the taxes become a lien on May 31. You agreed to pay all taxes due after the date of sale. The taxes due in 2005 for 2004 were $1,375. The taxes due in 2006 for 2005 will be $1,425.

You cannot deduct any of the taxes paid in 2005 because they relate to the 2004 property tax year and you did not own the home until 2005. Instead, you add the $1,375 to the cost (basis) of your home.

You owned the home in 2005 for 243 days (May 3 to December 31), so you can take a tax deduction on your 2006 return of $949 [(243 ÷ 365) × $1,425] paid in 2006 for 2005. You add the remaining $476 ($1,425 - $949) of taxes paid in 2006 to the cost (basis) of your home.

Settlement or closing costs. If you bought your home, you probably paid settlement or closing costs in addition to the contract price. These costs are divided between you and the seller according to the sales contract, local custom, or understanding of the parties. If you built your home, you probably paid these costs when you bought the land or settled on your mortgage.

The only settlement or closing costs you can deduct are home mortgage interest and certain real estate taxes. You deduct them in the year you buy your home if you itemize your deductions. You can add certain other settlement or closing costs to the basis of your home.

Items added to basis. You can include in your basis the settlement fees and closing costs you paid for buying your home. A fee is for buying the home if you would have had to pay it even if you paid cash for the home.

The following are some of the settlement fees and closing costs that you can include in the original basis of your home.
Abstract fees (abstract of title fees).

Charges for installing utility services.

Legal fees (including fees for the title search and preparation of the sales contract and deed).

Recording fees.

Surveys.

Transfer taxes.

Owner's title insurance.

Any amount the seller owes that you agree to pay, such as back taxes or interest, recording or mortgage fees, cost for improvements or repairs, and sales commissions.

If the seller actually paid for any item for which you are liable and for which you can take a deduction (such as your share of the real estate taxes for the year of sale), you must reduce your basis by that amount unless you are charged for it in the settlement.

Items not added to basis and not deductible. Here are some settlement and closing costs that you cannot deduct or add to your basis.
Fire insurance premiums.

Charges for using utilities or other services related to occupancy of the home before closing.

Rent for occupying the home before closing.

Charges connected with getting or refinancing a mortgage loan, such as:

FHA or other mortgage insurance premiums and VA funding fees,

Loan assumption fees,

Cost of a credit report, and

Fee for an appraisal required by a lender.

Points paid by seller. If you bought your home after April 3, 1994, you must reduce your basis by any points paid for your mortgage by the person who sold you your home.

If you bought your home after 1990 but before April 4, 1994, you must reduce your basis by seller-paid points only if you deducted them. See Points, earlier, for the rules on deducting points.

Gift
To figure the basis of property you receive as a gift, you must know its adjusted basis (defined later) to the donor just before it was given to you, its FMV at the time it was given to you, and any gift tax paid on it.

Donor's adjusted basis is more than FMV. If someone gave you your home and the donor's adjusted basis, when it was given to you, was more than the fair market value, your basis at the time of receipt is the same as the donor's adjusted basis.

Disposition basis. If the donor's adjusted basis at the time of the gift is more than the FMV, your basis when you dispose of the property will depend on whether you have a gain or a loss.
If using the donor's adjusted basis results in a loss when you sell the home, you must use the fair market value of the home at the time of the gift as your basis.

If using the fair market value results in a gain, you have neither a gain nor a loss.

Donor's adjusted basis equal to or less than the FMV. If someone gave you your home after 1976 and the donor's adjusted basis, when it was given to you, was equal to or less than the fair market value, your basis at the time of receipt is the same as the donor's adjusted basis, plus the part of any federal gift tax paid that is due to the net increase in value of the home.

Part of federal gift tax due to net increase in value. Figure the part of the federal gift tax paid that is due to the net increase in value of the home by multiplying the total federal gift tax paid by a fraction. The numerator (top part) of the fraction is the net increase in the value of the home, and the denominator (bottom part) is the value of the home for gift tax purposes after reduction for any annual exclusion and marital or charitable deduction that applies to the gift. The net increase in the value of the home is its fair market value minus the adjusted basis of the donor.

Publication 551 gives more information, including examples, on figuring your basis when you receive property as a gift.

Inheritance
Your basis in a home you inherited is generally the fair market value of the home on the date of the decedent's death or on the alternate valuation date if the personal representative for the estate chooses to use alternative valuation.

If an estate tax return was filed, your basis is generally the value of the home listed on the estate tax return.

If an estate tax return was not filed, your basis is the appraised value of the home at the decedent's date of death for state inheritance or transmission taxes. Publication 551 and Publication 559, Survivors, Executors, and Administrators, have more information on the basis of inherited property.

Adjusted Basis
While you own your home, various events may take place that can change the original basis of your home. These events can increase or decrease your original basis. The result is called adjusted basis. See Table 3, earlier, for a list of some of the items that can adjust your basis.

Improvements. An improvement materially adds to the value of your home, considerably prolongs its useful life, or adapts it to new uses. You must add the cost of any improvements to the basis of your home. You cannot deduct these costs.

Improvements include putting a recreation room in your unfinished basement, adding another bathroom or bedroom, putting up a fence, putting in new plumbing or wiring, installing a new roof, and paving your driveway.

Amount added to basis. The amount you add to your basis for improvements is your actual cost. This includes all costs for material and labor, except your own labor, and all expenses related to the improvement. For example, if you had your lot surveyed to put up a fence, the cost of the survey is a part of the cost of the fence.

You also must add to your basis state and local assessments for improvements such as streets and sidewalks if they increase the value of the property. These assessments are discussed earlier under Real Estate Taxes.

Repairs versus improvements. A repair keeps your home in an ordinary, efficient operating condition. It does not add to the value of your home or prolong its life. Repairs include repainting your home inside or outside, fixing your gutters or floors, fixing leaks or plastering, and replacing broken window panes. You cannot deduct repair costs and generally cannot add them to the basis of your home.

However, repairs that are done as part of an extensive remodeling or restoration of your home are considered improvements. You add them to the basis of your home.

Records to keep. You can use Table 4 (at the end of the publication) as a guide to help you keep track of improvements to your home. Also see Keeping Records, later.

Energy conservation subsidy. If a public utility gives you (directly or indirectly) a subsidy for the purchase or installation of an energy conservation measure for your home, do not include the value of that subsidy in your income. You must reduce the basis of your home by that value.

An energy conservation measure is an installation or modification primarily designed to reduce consumption of electricity or natural gas or to improve the management of energy demand.

Keeping Records

Keeping full and accurate records is vital to properly report your income and expenses, to support your deductions and credits, and to know the basis or adjusted basis of your home. These records include your purchase contract and settlement papers if you bought the property, or other objective evidence if you acquired it by gift, inheritance, or similar means. You should keep any receipts, canceled checks, and similar evidence for improvements or other additions to the basis. In addition, you should keep track of any decreases to the basis such as those listed in Table 3.

How to keep records. How you keep records is up to you, but they must be clear and accurate and must be available to the IRS.

How long to keep records. You must keep your records for as long as they are important for meeting any provision of the federal tax law.

Keep records that support an item of income, a deduction, or a credit, appearing on a return until the period of limitations for the return runs out. (A period of limitations is the period of time after which no legal action can be brought.) For assessment of tax you owe, this is generally 3 years from the date you filed the return. For filing a claim for credit or refund, this is generally 3 years from the date you filed the original return, or 2 years from the date you paid the tax, whichever is later. Returns filed before the due date are treated as filed on the due date.

You may need to keep records relating to the basis of property (discussed earlier) longer than for the period of limitations. Keep those records as long as they are important in figuring the basis of the original or replacement property. Generally, this means for as long as you own the property and, after you dispose of it, for the period of limitations that applies to you.

Table 4. Record of Home Improvements

Keep this for your records. Also, keep receipts or other proof of improvements.

Remove from this record any improvements that are no longer part of your main home. For example, if you put wall-to-wall carpeting in your home and later replace it with new wall-to-wall carpeting, remove the cost of the first carpeting.
(a)
Type of Improvement (b)
Date (c)
Amount (a)
Type of Improvement (b)
Date (c)
Amount
Additions: Heating & Air
Conditioning:
Bedroom Heating system
Bathroom Central air conditioning
Deck Furnace
Garage Duct work
Porch Central humidifier
Patio Filtration system
Storage shed Other
Fireplace Electrical:
Other
Lawn & Grounds: Lighting fixtures
Wiring upgrades
Landscaping Other
Driveway Plumbing:
Walkway
Fences Water heater
Retaining wall Soft water system
Sprinkler system Filtration system
Swimming pool Other
Exterior lighting Insulation:
Other
Communications: Attic
Walls
Satellite dish Floors
Intercom Pipes and duct work
Security system Other
Other
Miscellaneous: Interior
Improvements:
Storm windows and doors Built-in appliances
Roof Kitchen modernization
Central vacuum Bathroom modernization
Other Flooring
Wall-to-wall carpeting
Other

How To Get Tax Help
You can get help with unresolved tax issues, order free publications and forms, ask tax questions, and get more information from the IRS in several ways. By selecting the method that is best for you, you will have quick and easy access to tax help.

Contacting your Taxpayer Advocate. If you have attempted to deal with an IRS problem unsuccessfully, you should contact your Taxpayer Advocate.

The Taxpayer Advocate independently represents your interests and concerns within the IRS by protecting your rights and resolving problems that have not been fixed through normal channels. While Taxpayer Advocates cannot change the tax law or make a technical tax decision, they can clear up problems that resulted from previous contacts and ensure that your case is given a complete and impartial review.

To contact your Taxpayer Advocate:
Call the Taxpayer Advocate toll free at
1-877-777-4778.

Call, write, or fax the Taxpayer Advocate office in your area.

Call 1-800-829-4059 if you are a
TTY/TDD user.

Visit www.irs.gov/advocate.

Home Warranty or No Home Warranty?

2006-02-25T00:14:00.000-07:00

When you purchase a home, you have the option to request the seller of the home to purchase a home warranty to be placed in your name, or you may purchase a home warranty yourself. Either way for a cost range of anywhere from $305-$500 annually, it is a great idea and great piece of mind. Old Republic Home Warranty provides a great home warranty that suits just about any home. I would highly recommend asking the seller to pay for a home warranty, and if they decline, purchase one on your own. In the event that you do not have the extra cash to purchase a home warranty, contact us! When you purchase a home utilizing our free homebuyer services, we will buy the home warranty for you through Old Republic Home Warranty at no cost to you for 1 year! Visit www.orhp.com for details on Old Republic's home warranty plans and the value you receive.

For more details or questions contact:
Casey Ross
Century 21-Centre Point
Cell: 623-326-4132
Email: caseyross @ cox.net

Finally a NO DOWN program that works!

2006-02-24T00:53:00.000-07:00

Would you like to purchase a home but do not have the funds available to make a down payment? There is relief! Alot of folks decide to give up on purchasing a home becuase their credit score is not very good, they do not have any money to put down on a home. Well, we can help. The Neighborhood Gold program allows a grant to be applied to your downpayment. Seller participation is required. Let us help you purchase a home and stop paying rent, earn equity, and have a place to call HOME!

Call or email us for details or questions! We look forward to hearing from you!

Casey and Trisha Ross
Century 21-Centre Point
Cell: 623-326-4132 or 623-326-4128
Email: caseyross @ cox.net

Arizona foreclosures

2006-02-22T23:45:00.000-07:00

The reports seem to state that foreclosures in Arizona seem to be on the rise and will continue to do so up through 2007. Do you know how to obtain foreclosing lists without paying for them? Do you what to do with them when you receive them? The average real estate investor does not have the knowledge to invest in pre-foreclosed properties. Both my wife, Trisha and I have assisted those in the pre-foreclosure process and investors purchase a home in pre-foreclosure. If you are struggling to pay your mortgage, but want to retain your home, contact us. We have many options available to you to save your credit, and most importantly your home. If you are planning on investing in foreclosures, please contact us and we can provide you with the knowledge to do so, while treating the owner's of homes in duress fairly and respectfully. It has to be a win-win situation for both parties, shame on the investors that take advantage of the situation.

Casey and Trisha Ross
Century 21-Centre Point
Cell: 623-326-4132
Web: http://www.c21rossteam.com

Arizona Real Estate Market

2006-02-19T22:40:00.000-07:00

Why is my home not selling in a few days? It is priced right, spacious and clean.

The Arizona Real Estate market has changed rather dramatically from the spring and early summer months of 1 year ago. The "investor purchase whirlwind" has for the most part left town. This in turn has increased the inventory of resale homes on the market in the Greater Phoenix area.

Many homebuyers have large amounts of homes at their disposal. They can critique the negatives and move on to the next home without blinking an eye. Plain and simple, the supply of homes currently on the market outweighs the demands. It is important for potential homesellers to understand how to optimize their chances of selling their home in the current market setting in the Phoenix area.

I can optimize your chances, while not compromising your equity. Call or email me today and I will help you understand how it is very, very possible to sell your home in the current market setting.

Best regards,
Casey Ross
Century 21-Centre Point
Cell: 623-326-4132
Email: caseyross @ cox.net