Good news - Yesterday the Senate approved a plan to give homebuyers an extra three months to finish qualifying for federal tax incentives that boosted home sales this spring.

The move by Senate Majority Leader Harry Reid would give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000. Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale.

The proposal, approved by a 60-37 vote, would only allow people who already have signed contracts to finish at the later date. About 180,000 homebuyers who already signed purchase agreements would otherwise miss the deadline.

Dianne Sommers

Realtor Associate/Market Consultant

RE/MAX Classic Group

 
The credit of up to $8,000 for first-time buyers, originally due to expire Nov. 30, has been extended into 2010. This is money that never has to be repaid, provided you live in the home for three years.

Homebuyers who owned and lived in their principal residence for five consecutive years of the last eight are eligible for a credit of up to $6,500.

Facts about the Homebuyer Tax Credit:

• You must have a signed purchase agreement for your home no later than April 30, 2010, and the transaction must close before July 1.
• First-time buyers receive a credit of 10 percent of the purchase price, up to $8,000. You are considered a first-time buyer if neither you nor your spouse has owned a principal residence in the U.S. within the last three years.
• Buyers who owned and lived in their principal residence for at least five consecutive years of the last eight can receive credit of up to $6,500 when they contract to purchase a home before April 30, 2010, and close before July 1.
• The upper income limit to receive the full credit is raised to $125,000 for individuals and $225,000 for couples.
• If the purchase price is more than $800,000, the buyer is not eligible for the credit.
• There is no minimum income for claiming the credit. You qualify for the full credit even if you won't owe any taxes for 2009 or 2010.
• You can claim the credit when you file your 2009 or 2010 tax return. And you can even apply the credit to your down payment for the purchase of an FHA-insured home.

Contact me today to assist you in your home purchase.

Dianne Sommers
RE/MAX Classic Group - Sales Associate/Market Consultant
(908) 432-5721 cell
www.sommerssellsrealestate.com 

Don't forget to ask me about our 14ft truck available to all our clients!

Long Hill Township is FINALLY starting to see the Real Estate market start to move.

We have witnessed the surrounding towns' inventory continue to move over the past few months while Long Hill appeared to remain stagnant.

 There are currently 58 active listings in Long Hill and we have 8 homes under contract, which is twice as many under contracts as this time last month!! Hopefully this is a good indication of a busy Spring Market!!

under contract

If you are thinking of buying or selling a home in Long Hill Township, or any of the surrounding areas, please call me today @ (908) 432-5721.

Dianne Sommers

Realtor Associate

THE BASICS  A SHORT SALE:

Banks grant short sales for 2 reasons: the seller has a hardship, and the seller owes more on the mortgage than the home is worth.

A few examples of hardship are:

Unemployment/Reduced Income

Divorce

Medical Emergency

Job transfer out of town

Bankruptcy

Death

If this is the situation you find yourself in, please do not hesitate to contact me for more information on the Short Sale process. It is not a process to be afraid of, but it is important to hire a Real Estate professional who is familiar with the process.

All information is private and confidential.

Dianne Sommers

Realtor Associate/Market Consultant

Facts about the Home Seller  Tax Breaks:

Almost everybody has heard about the $7500 tax credit for first-time home buyers, but what about tax breaks for home sellers? Home sellers enjoy a tremendous tax benefit upon resale. Internal Revenue Code Section 121 authorizes an "exclusion" - escape from income taxes - for profits from home sales. The exclusion is as much as $500,000 for married couples who file joint returns, and $250,000 for single filers and couples who file separate returns. What happens, though, when the gain is greater than the exclusion ceiling of $500,000 or $250,000? Answer: The excess is taxed as a long-term capital gain at a maximum rate of 15 percent, plus applicable state taxes. The key requirement: Own and live in the property as your principal residence for periods aggregating at least two out of the five years ending on the sale date, and at least two years must have elapsed since you last used the exclusion.

For more information do not hesitate to contact me or visit my website @

www.longhilltownshiphomes.com

LONG HILL TOWNSHIP HOMES

2008

 86 Homes sold

Average sales price - $539,647

2009

 56 Homes sold

 Average sales price - $498,513

Long Hill Township saw a 7.6% decline in average sales price from 2008 to 2009. We have definitely seen a "slow down" in the Long Hill market over the past 6 months. With the interest rates still at record low numbers, and the first time home buyers tax credit extended, we are looking for the home sale numbers to pick up over the next few months.

 For more information, please do not hesitate to contact me or visit my website @ www.longhilltownshiphomes.com

Facts about the Homebuyer Tax Credit:

You must have a signed purchase agreement for your home no later than April 30, 2010, and the transaction must close before July 1.

First-time buyers receive a credit of 10 percent of the purchase price, up to $8,000. You are considered a first-time buyer if neither you nor your spouse has owned a principal residence in the U.S. within the last three years.

Buyers who owned and lived in their principal residence for at least five consecutive years of the last eight can receive credit of up to $6,500 when they contract to purchase a home before April 30, 2010, and close before July 1.

The upper income limit to receive the full credit is raised to $125,000 for individuals and $225,000 for couples.

If the purchase price is more than $800,000, the buyer is not eligible for the credit.

There is no minimum income for claiming the credit. You qualify for the full credit even if you won't owe any taxes for 2009 or 2010.

You can claim the credit when you file your 2009 or 2010 tax return. And you can even apply the credit to your down payment for the purchase of an FHA-insured home.

www.longhilltownshiphomes.com

LONG HILL TOWNSHIP MARKET UPDATE

October 2009 

New listings - 7

Under Contract - 4

Closed Sales - 7

FIRST TIME HOME BUYER TAX CREDIT:

The first time buyers tax credit has been EXTENDED and EXPANDED! Apparently through April 30, 2010 with a 60 day extension for contracts written by that date to close. It is also EXPANDED for move-up buyers (possibly a $6500 credit) who have lived in their homes for the past 5 years.

More details to follow...we are just waiting for a final bill to be passed in the Senate...this is great news!!!

For more infor mation on Long Hill Township Real Estate or the First Time Home Buyers Tax Credit, please do not hesitate to contact me on my cell at (908) 432-5721.