Thanks to great government incentives, like the first time home buyers tax credit, low property prices and historically low interest rates, first time home buyers are flocking to the real estate market.  Unfortunately for most they aren’t always getting the first home of their dreams or enjoying a buying experience that they will share with their children.

A recent story in U.S. News, from Kimberly Castro, highlights these 10 Rookie Mistakes of property virgins:

1.  Not checking your credit score.  Before you begin your house hunt, review your credit report. Make sure all the information is correct and dispute any mistakes before your lender checks your credit.
2.  Not getting pre-approved.  Find a couple of qualified lenders and get pre-approved; not just prequalified.
3.  Not planning a long-term budget.  You should create a budget before you start your home search and know much house you can afford. A rule of thumb is your mortgage payment should be no more than a third of your monthly household income, including mortgage principal, interest, taxes, and insurance.
4.  Missing the hidden costs.  These include closing costs, appraisal fees, escrow fees, homeowner's insurance fees, property taxes, and last the moving costs.
5.  No getting professional help.  Realtors have access to all the homes for sale and the time to sift through all the listings on the market. Having somebody that knows the contracts, has experience negotiating, and can walk you through the entire process will be an asset.
6.  Blindly choosing your professionals.  Making sure you are comfortable with your realtor and with your lender is especially important to a great first home buying experience. 
7.  Relying too much on your wish list.  Knowing what you are looking for is one thing, but to the point of not being flexible is another.  Remember if you want a custom home, you’ll have to have it built. 
8.  Holding down the excitement until after the home inspection.  Home inspections can make or break the deal.  Don’t get caught up in your interior design and color palettes until after the inspections. 
9.  Not checking out the neighborhood.  Don’t let this go by.  The house may be perfect, but the neighbors may be a nightmare, the school might be terrible or the street might be a teen drag racing zone.  Take the time to find out, before you decide. 
10. Not taking resale into account.  Make sure your property will appreciate over the years, not lose value. 

Make sure your first buying experience is an educated buying experience by not making these mistakes.  Buying a home is one of the largest investments you will make in your lifetime; make sure it is also a smart investment. 

Homeownership is the equivalent of tax deductions and credits.  While deductions can reduce your taxable income, like those associated with operating a home business from your home, tax credits are actually lower your tax bill. 

For 2010, there are three big tax credits available that every homeowner should be aware of when filing.  First time homebuyer’s tax credit is the obvious one.  If you purchased your first primary residence in 2009 or even in 2010, you can get a tax credit equal to 10% of the home’s purchase price up to $8000.  This is for homes purchased between Jan. 1, 2009 through June 30, 2010.  There are income restrictions.  Single taxpayers cannot have income greater than $125000 and joint filers cannot exceed $225000. 

There is also the existing homebuyer’s tax credit.  For anyone who bought a replacement home between November 7, 2009, and April 30, 2010, you may be eligible for up to 10 percent credit of the purchase price up to $6500.  Vacation homes or a second home are not eligible. Restrictions do apply.  A married couple filing joint can get up to $6,500 or less credit, but single filers or married couples that file separate return can get up to $3,250, you need to have lived in your previous house for at least five consecutive years of the last eight.  Good news is that military, Foreign Service Officer, part of the intelligence community or anyone stationed overseas has till April 30, 2011 to claim the credit.

The third credit is the Home Energy Efficiency Improvement Tax Credit.  The government will reimburse you 30% of what you spend to make your home energy efficiency up to $1,500, for basic home improvement purchases. If the home improvement purchase is beyond the basics, the government will you 30 percent of the cost for your home energy efficiency improvement project with no cap.  As always restrictions apply.  You have to make your material purchase by December 31, 2010. A solar energy system, a wind system, a geothermal heat pump, fuel cells or a micro turbine system are also eligible for 30% credit with no cap. 

Tax deductions can be taken every year by qualified individuals.  Possible home owner tax deductions (these deductions vary depending on individual situations) include property taxes and closing costs as well as interest paid on home mortgage loans.  There are usually local incentives in place as well.

The IRS wants renters to buy and wants homeowners to take care of their homes.  For this reason they put these homebuyer tax credits and deductions in place.  Save money on your taxes and take every credit and deduction you can. 
 

Florida is a state that simply thrives.  Employment rates remain high and the culture soars even higher.  Whether it’s the jobs or the weather that attract people to the Sunshine State, there is definitely a surplus of properties for sale at really great prices. 

If you have considered relocation or are interested in a second home in the South, then there is no better time to buy property in Florida than right now.   Like everywhere else in the Nation, Florida has a number of foreclosure and REO properties available, but how do you know where you want to live? Florida is a big state after all…

Every area of Florida has its own history, architecture and style.  Picking the right one is a matter of knowing what you are looking for in your community.  To make investigating each city easier, visit HGTV’s Florida City Guides.  This guide can help you decide which town, community or big city in Florida is the right place for you to call home or even second home. 

This week HGTV featured the many styles of Tampa, FL in their City Guide letting online visitors explore Tampa’s surrounding areas like Kenwood, St. Petersburg, Gulfport and West Tampa without leaving their homes.  Take advantage of this great tool for exploring which Florida home for sale will be the right fit for you.  Remember to return to Trent Realty to find your Florida home for sale and to get great deals on Florida REO properties in the town of your choice. 

The housing market is definitely saturated in foreclosure and REO properties.  In order to compete, most conventional homes have been priced low as well.  Although there are many deals to be made and multiple government tax credits to be had, the turnover on home sales is slow.  For this reason, many homes, especially foreclosures are on the market for a considerably long time and although you get a good price, you could also get more than you bargain for in repairs.  Take the time to inspect any home you buy, including those that are not foreclosure or REO properties for these hidden dangers.

Mold is a biggy.  You have probably heard about all those people who died from black mold inhalation in their homes and it is a serious problem.  It can be hidden in the walls and under the stairs.  Often times fungus will begin to grow in empty cabinets and drawers, but this is usually a less serious issue than mold in the walls.  Drawers and cabinets can generally be wiped down with bleach or even removed and replaced.   Proper handling of a mold situation however is imperative.  Clean-up or mold removal should be performed by a licensed professional. 

It’s okay if a home you are considering is missing sinks, toilets or fixtures.  It’s not unusual for this to be the case in “as-is” sales.  What is more important is how these items were removed.  Were they yanked from the walls and floor permanently damaging existing plumbing? There is a huge difference in cost when you are comparing buying a new sink to putting in all new plumbing. 

Don’t forget to take a deep breath and smell.  Heating and cooling systems can harbor mold when not cared for.  Oily smells and obvious black cob webs can indicate a furnace that is need of repair or replacement.  Again, this is a huge difference in repair price.  Most central air systems cost big bucks and a new furnace is right up there with them.

If a house has been on the market during winter months, you will want to be sure it was weatherized.  If a home is not weatherized you could be in store for major plumbing repairs.  In colder states, plumbing will freeze and burst if not properly drained. 

These are just the less obvious issues that could be lurking beneath the service ready to spoil your great real estate purchase.  A licensed home inspector will be able to identify more common issues.  Remember however, with foreclosure purchases, you do not always get the opportunity for a full inspection.  REO properties are the safer purchase where inspections are permitted and encouraged.  This is the time to buy and it couldn’t be easier to buy safely.