For many reasons this is a good time for potential home buyers to purchase Virginia Beach real estate, and the large number of foreclosed homes available holds the promise of bargain prices.

Too good to be true? Perhaps. Buyers of foreclosed property, especially if it has been unoccupied and not maintained for some time, must be acutely aware of possible problems and trouble spots involved in such a sale and may have to realistically face some unpleasant facts. As Vince Mastronardi, president of On-Site Specialty Cleaning and Restoration, observes, “Buyers need to educate themselves about the potential pitfalls of purchasing distressed property. It’s not so much what damage occurred, but the sources of that damage and how long before the problem was addressed.”

A cautious buyer should look for signs which indicate that all is not well with a piece of Virginia Beach real estate.

1. The presence of mold. Once mold takes hold, it is almost impossible to get rid of. Look for places which have been excessively painted in an attempt to cover up mold.

2. Lack of heat for months in a home not properly winterized. Result? Burst pipes and water damage.

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Because it is both a resort town and a military community, investing in Virginia Beach real estate can be quite profitable and safe. Such a transaction can also be challenging, especially for first-time investors, and requires prior planning, a time commitment, realistic goals, and careful consideration of the following factors.

1. Selecting a property. First decide on a location and the type of property you are interested in. Bordering on both the Atlantic Ocean and the Chesapeake Bay and being the home to large military bases, a thriving Towne Center, and numerous medical facilities, Virginia Beach real estate offers a wide variety of desirable locations sought after by renters. You might also consider proximity to good schools, public services, shopping centers, highways, etc.

Another decision will deal with the type of property you want to own–a single family residence, a multi-family unit, or a vacation rental home. Discuss with you realtor and tax advisor the pros and cons of each to decide which will be most advantageous for you.

2. Examining your finances. In addition to a monthly mortgage payment, investment property expenses can also include taxes, property management fees, utilities, insurance for fire and floods, repair and maintenance costs, condo fees, and periods of vacancy. Be prepared to have cash on hand for a 20% to 30% down payment (or investigate other options).

Also keep in mind that long term (5 to 10 years) ownership is usually best for the average investment. The shorter the length of time you hold the property, the greater the risk.

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There were 1,539 Virginia Beach foreclosure homes for sale with 289 new foreclosures in January 2010. The average selling price of a Virginia Beach home was $268,745 in January and the average foreclosure selling price was $203,941, a savings of $64,803, according to RealtyTrac.com.

Virginia Beach Foreclosure Activity and Home Price Index

Home price appreciation was 0.0% with 289 new foreclosures.

Virginia Beach foreclosure activity is based on the total number of properties that receive foreclosure filings – default notice, foreclosure auction notice or repossession notice – each month. Home price appreciation is based on month-over-month percentage change of the Home Price Index. The Home Price Index is calculated from home sales records.

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April 30^th seems like a long way off, but for prospective Virginia Beach home buyers who are on the fence about making a home purchase, the next few months represent a countdown of sorts as huge tax credits are about to expire. Here are important details for you to know:

Tax Credit for First-Time Home Buyers
First-time home buyers may be eligible for the tax credit. The credit is 10% of the purchase price of the home, with a maximum available credit of $8,000. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Tax Credit for Current Home Owners
The tax credit program now gives those who already own a residence some additional reasons to move to a new Virginia Beach home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

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Considering a Reverse Mortgage for Virginia Beach Home

There may come a time when, after exploring all your real estate options for the future, you decide that you really don’t want to sell your Virginia Beach home and that you’d rather “age in place.” In that case, you should investigate applying for a reverse mortgage, also known as home equity conversion mortgage (HECM). As with any program or plan that is financially based, there are many pros and cons to be considered before you make a final decision.

Eligibility: you must be at least 62 years of age, own your own home (or have a very low balance that can be paid off), and be living in it as your primary residence. Your Virginia Beach home must meet FHA property standards, and you must provide on-going maintenance and pay property taxes, association dues, and insurance. In addition, you must also agree to attend an information counseling session

Amount: Factors used to determine the amount of your eligibility include your age, interest rates, and the value of your home. Most reverse mortgages provide you with a monthly payment. The are online websites that allow you to calculate/estimate the amount. Go to AARP.com, USAReverseMortgageAdvisor.com, or ReverseMortgageGuides.org for assistance.

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Although house sales usually slow down in the winter months, this year may be different. Because the Home Buyers Tax Credit deadline has been extended and the qualifying income levels have been expanded, this is an ideal time for both first-time and repeat buyers to purchase a Virginia Beach home.

Basic facts Home Buyers Tax Credit:

• The new deadline is April 30, 2010 (June 30^th with a binding, signed contract)

• First-time buyers are eligible for a tax credit of 10% of the purchase price–up to $8000.00

• Repeat buyers (those who have lived in one residence for 5 consecutive years of the last can receive a credit of up to $6500.00.

• Income levels–$125,000 for individuals; $225,000 for couples.

The credit may be claimed on this year’s tax return (for 2009).

***Remember that a tax credit is a dollar-for-dollar deduction in what a taxpayer owes. If the credit exceeds the amount owed, a refund will be issued.

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To sell or not to sell Virginia Beach real estate?

That is a question with which many seniors are wrestling these days. One the one hand, older homeowners are faced with rising maintenance costs, personal physical constraints, a desire to live a more carefree and less complicated lifestyle, a realistic look at future needs, such as being near public transportation and/or quality health care, and living in a “too-large” home. On the other hand, they are reluctant to leave a neighborhood where they are known and respected, move further from friends and family, consider downsizing and parting with treasured items, and undertaking the seemingly overwhelming job of emptying one home and setting up another. In addition, they don’t want to give up the security or the memories tied to their current home.

A knowledgeable and understanding real estate agent who is familiar with the needs and desires of the 55+ set, combined with the services of an attorney who specializes in both real estate and estate planning and an accountant who deals with senior tax implications, can be invaluable to you in looking at all aspects of selling your Virginia Beach real estate and helping you determine what is best for you. You might think about taking out a home equity loan before you put your house on the market and that you involve your whole family in the decision-making process.

Deciding to Sell

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Yes, it’s tax season again, and given the state of the economy, saving every penny is very appealing. As an owner of Virginia Beach real estate there are many deductions and tax credits you will want to take claim on your 2009 return…provided you qualify of course!!

Here are a number of money-saving ways to reduce the amount of tax you owe–or even increase the amount of your refund!

First, let me explain the difference between a tax deduction and a tax credit.  A tax deduction reduces (adjusts) your taxable income. A tax credit reduces your tax dollar for dollar. You do not have to itemize deductions to claim a tax credit.

Tax Deductions for Primary Residence

Tax deductions on your primary residence include:

• Interest paid on your mortgage
• Refinancing points paid in 2009
• Real estate taxes
• Interest on major home improvement loans
• Mortgage insurance premiums
• Home improvements required for medical care
• Any sales commission, legal fees, or closing costs associated with the sale of [city] real estate in 2009
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This final portion of your guide to homeowners insurance gives you information you hope you’ll never use–dealing with damage to your Virginia Beach home. Most likely your policy will explain how to file a claim, but here are the basic steps:

How To File An Insurance Claim On Your Virginia Beach Home

1.  If a crime has been committed, report it to the police. You should get a copy of the police report.

2.  Contact your insurance agent or company immediately.

3. If necessary, try to protect your property from further damage. Save your receipts.

4. Don’t dispose of damaged items until the adjuster has seen them.

5. Prepare a list of damaged items. Take pictures of the damage. (Now aren’t you glad you made an inventory list/video?)

6. Get the appropriate claim forms and fill them out completely. Return them within the time limit.

If you encounter problems (such as denial or inaction within a reasonable period of time) settling your insurance claim for your Virginia Beach home, you can follow these steps:

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The winter blahs are on the horizon. How can you keep them at bay and infuse your life with a newfound purpose? That’s easy–put your Virginia Beach home on the market. Although spring is traditionally considered the optimum time to sell a home, there are positive aspects to selling in the winter.

Buyer time constraints: A majority of corporate moves take place around in the winter, and transferees need to find a home quickly. Parents are also anxious to get their children settled in a new school as soon as possible. By the way, some experts believe it is better for a child to move during the school year as opposed to the summer months. Starting a new school immediately upon arriving in a new location allows for an easier time of making friends and establishing new routines..

Tax credit extension: Now that the Home Buyer Tax Credit Act deadline has been extended to April 30^th, many first-time buyers and “repeat buyers” are seriously looking to purchase a Virginia Beach home–and soon!

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