In February, President Obama and Congress passed the massive $787 Billion Stimulus Plan, which contained some rather interesting provisions that impact the real estate space.

The principal provision designed to stimulate new sales was the First Time Homebuyer Tax Credit. If a first time home buyer (or someone who has not owned a home in 3 years) purchases between 01/01/09 and 11/30/09 they will be eligible for a tax credit of up to $8,000 when they file their taxes, and depending on the timing of the purchase the credit can be applied to either 2008 or 2009 taxes. Also, unlike an earlier, weaker $7500 provision passed in 2008, this credit doesn’t need to be paid back.

Other important factors included in the Housing Market section of the Stimulus Bill were:
• The FHA, Fannie Mae, and Freddie Mac 2008 loan limits were put back into place for 2009. At the end of 2008, they lowered the loan limits which hurt the higher end market.
• It also includes a 30% tax credit on Energy Efficient upgrades to your home (up from 10%) such as furnaces, windows, and insulation. This credit will be available through 2010 and does include income restrictions.

So, the big question in everyone’s mind is “will this help, and does it go far enough?”

Speaking for myself, I just bought my first home a few days ago. I was already planning to buy, so the stimulus bill didn’t really get me off the fence or anything, but it did factor in slightly in terms of my overall price ceiling and/or how willing I was to take on a house that required some immediate improvements (and cash) sunk into it.

We’re running a poll with our Z57 clients asking them to gauge the impact of the bill – right now it’s running about 40% for “No Impact”, 44% say “Some Impact”, and the remaining 16% saying it will have a “Major Impact”.

I tend to slide into the “some impact” group myself – WHAT DO YOU THINK?

 By Hatim Daher, Director of Product Management at Z57

The recent influx of distressed properties has created unfortunate situations for many, but in turn has created some great opportunities for real estate professionals and buyers. In the current marketplace, real estate agents can jumpstart their business by targeting the distressed buyer niche. Let’s look at the key strategies you can utilize to capitalize on this shifting market.

There are websites like ForeclosurePoint.com that offer free information on foreclosure listings. Other websites like Foreclosure.com and RealtyTrac.com charge fees but offer more properties and more detailed information. They also provide helpful guides on how to buy distressed properties, educational articles and state-specific laws.

With foreclosure websites having centralized databases and tons of helpful information, they can be a one-stop shop for you to implement foreclosure properties into your website. They are also great to source for your buyers, as they offer many properties that aren’t available through the local MLS.

To ensure our clients stay in the forefront of this market, Z57 recently partnered with Foreclosure.com, the nation’s largest distressed property database. At no extra cost, Z57 websites have the option to include a Foreclosures button on the navigation which allows visitors to search thousands of foreclosure listings. Already, current clients using this feature have seen a remarkable growth in visitors and new leads - in the first 5 weeks our clients have received almost 40,000 leads!

You can also keep your website content up-to-date with information on distressed properties that includes credible articles, links and local information about how your area has been affected. Create a new page on your website dedicated to these properties or write a paragraph on your homepage highlighting how you can help those in search of distressed homes. If you are experienced in this area already, target these buyers in special ways such as holding foreclosure seminars, creating a separate website dedicated to this niche or sending out a distressed property guide.

Blogging is another great way to target this niche. To attract buyers interested in distressed properties, blog with useful tips on how to find these properties, what to watch out for and how you can help them. Your blog and website should be linked so if they read a post, they can then visit your website and vice versa.

Invest the time to learn more about distressed properties, as this will continue to be an important real estate niche in the next few years. Check with your city and state organizations, your local or state real estate associations, local colleges, mortgage lenders and title companies for seminars and classes. Real Estate Buyer’s Agent Council (REBAC) recently added an elective course titled “Foreclosure: Prevention and Opportunities” with credit going towards your ABR. Also, the National Association of Realtors® is offering seminars about distressed properties at their 2008 conference and expo this fall.

Maximizing your influence in the foreclosure market isn’t out of your reach! Hopefully these tips sparked new ideas to implement into your business so you can continue to prosper in the current marketplace.