As you may have heard, significant improvements in the temporary First-Time Homebuyer Tax Credit were signed into law on Feb. 17 as part of the American Recovery and Reinvestment Act of 2009 to provide a housing stimulus for first-time home purchases that occur between Jan. 1 and Dec. 1, 2009.
This is even better news for first-time homebuyers than the tax credit announced in April 2008 because not only has the tax credit maximum increased from $7,500 to $8,000 - but more significantly - it does not need to be repaid unless the individual re-sells the home within three years.
There are several notable points about this federal income tax credit that I have bulleted for your convenience so you can easily explain the highlights to potential first-time homebuyers. They are:
•
Credit maximum was increased from $7,500 to $8,000. The credit is calculated as 10% of the purchase price. Example: If the purchase price is $70,000, the credit is $7,000.
•
Removed the repayment requirement, provided the homebuyer does not resell the home for three years.
•
Eligibility remains for first-time homebuyers only. In this case, a first-time homebuyer is defined as an individual who has not owned a primary home at any time during the three years prior to purchase, but who may have done so prior to that time. Although certain income limits do apply, the amount of the credit is the same for all taxpayers, married or single.
•
To be eligible for the full tax credit, the homebuyer can have an annual adjusted gross income of no more than $75,000 ($150,000 on a joint return). A homebuyer with an annual adjusted gross income above that level and up to $95,000 ($170,000 on a joint return) is eligible for a reduced tax credit.
•
The tax credit can be claimed on one's individual or joint tax return for the purchase of any single-family home between Jan. 1, 2009 and Dec. 1, 2009. It can be claimed on a 2008 tax return (to be filed by April 15, 2009), an amended 2008 tax return, or a 2009 tax return. Individuals should consult a professional tax advisor for exact tax calculations and timing.
To further assist you in communicating this good news, we have created a Consumer Guide chart that explains these important points. In addition, the National Association of Realtors® has prepared a Major Modifications Chart that brokers/agents can use to understand the improvements made in the tax credit since last April. We also have a PowerPoint presentation summarizing the First-Time Homebuyer Tax Credit for your use during first-time homebuyer seminars in your local market and in individual client meetings. Be sure to note that you are not a tax or legal professional, and of course encourage homebuyers to use their own advisors.
Keep in mind that this tax credit is retroactive. You should reach out to your recent first-time homebuyers who closed on or after Jan. 1, 2009 or are currently under contract to close in the near future. Plus, this is a great opportunity to call your customers and potential buyers and help get this important message out to those who can reap the benefits associated with it.
Once you've found your dream house, it's time to get started with the financial and contractual side of the purchase. Purchase contracts vary in length and terms from state to state, and within a state, from locality to locality. Because you and the seller have different goals, rely on my experience and expertise. I can bring order and calm to the process and will know what questions you may not know to ask to help you reach a favorable outcome.
Multiple offers on the same home are not uncommon, so you may only get one chance to make an offer that the seller will consider. That's why it's important to think carefully about your strategy. In most cases it is better to have your real estate professional negotiate the offer. If you have any personal interaction with the homeowner, don't give out any information about your move, your current housing status, financial status or your feelings about their property - positive or negative. This could hurt you in future negotiations.
TIS THAT TIME OF YEAR WHERE THE BEAUTY OF THE OUTDOORS TURNS A DULL GRAY, FLOWERS DIE AND TREES LOOSE THEIR BRILLIANCE. SO IF YOU ARE SELLING YOUR HOME AT THIS TIME YOU SIMPLY MUST PUT THE EXTRA EFFORT INTO "CURB APPEAL". NOW MORE THAN EVER, IT'S IMPORTANT TO LET YOUR HOME STAND OUT AND BE SEEN. HERE'S A FEW TIPS FOR WINTER SELLING:
1. MAKE SURE YOUR ADDRESS IS VISIBLE FROM THE STREET. NUMBERS SHOULD BE HORIZONTAL RATHER THAN VERTICAL AND LIT UP AT NIGHT AS NIGHT COMES SOONER IN WINTER MONTHS.
2. FRONT DOOR - MAKE SURE THERE'S A CLEAR PATH TO THE FRONT DOOR, PLENTY OF LIGHTING, NO DEAD PLANTS OR BUSHES BLOCKING THE WAY. A FRESH COAT OF PAINT AND NEW HARDWARE DO WONDERS.
3. LANDSCAPING - RAKE THOSE LEAVES, TRIM DEAD BRANCHES, A FRESH BATCH OF MULCH AND MAYBE A SMALL WINTER POTTED SHRUB IF THERE'S ENOUGH ROOM AT THE ENTRANCE. NO FAKE FLOWERS!!
4. HAVE A CLEARLY DEFINED EDGE BETWEEN LAWN AND PLANTING BED. USE STONE, BRICK, OR BED LINERS FROM THE NEARBY LANDSCAPING STORE.
5. CLEAR THE CLUTTER! EXTRA CARS, POTS FULL OF DEAD PLANTS, BIKES, GARDEN TOOLS, HOSES. REMOVE AND STORE FOR WINTER. KEEP GARBAGE CANS OUT OF SIGHT.
6. TOUCH UP PAINT ON TRIM AND GARAGE DOORS. REPAIR/REPLACE LOOSE SHINGLES. PAINT/REPLACE MAILBOX, REMOVE STAINS FROM CONCRETE WALKS AND DRIVEWAY AND FILL IN CRACKS.
SERIOUS BUYERS ARE LOOKING DURING THESE COOLER MONTHS SO KEEP YOUR HOME IN THE SPOTLIGHT!
Take a look at this one! 7.17 acres on main road, lake frontage and city water. 3 bd/2ba home with plenty of level land surrounding it and gentle slope to water. Convenient to everything. I-40 and the charming and historical town of Dandridge just minutes away. This property can be divided with county approval. Opportunity for your own lake home, development or investment. Bring me an offer!
Great opportunity to own this brick ranch home on 1.62 acres in Maryville. Outside offers covered porch in the front, deck with sun shade, covered patio, in the back of home. Storage building and putting green included. Inside boasts cathedral ceiling and fireplace in great room. Open floor plan with dining space and breakfast nook. French doors lead to deck. 3 bedrooms with walk in closets and 2 full baths on the main level. Master bedroom is spacious with cathedral ceiling. Master bath has whirlpool tub and separate shower along with 2 sinks/vanities and tile flooring.
Downstairs recreation room provides all you need for entertaining with it's 35 x 33' room size. Additional 14 x 15 room ( with huge closet) downstairs provides guest space, office, hobby room - you decide! 3rd full bath located here as well. Home offers many amenities such as central vac, security system, wired in lower level for surround sound, air filtering system, utility sink and more!
Take a look at this investment opportunity in Knoxville! Duplex - each side 2 bedrooms, 1 bath, kitchen and living room. Wood floors. Basement shared by tenants with storage, indoor parking and washer/dryer. Freshly painted on the outside. Steady tenant history. MLS# 600571 Visit my website for additional pictures at www.prostad.century21reg.com <br>
Get away to this 5 acre tract in the Chilhowee Mtns. Wooded with year round creek. Property is suitable for a variety of building plans. Very private and only 8 miles from town. Great to come home to after a long day. Take a walk to the creek on the trail that winds thru property. Seasonal mountain views. Every season makes this property special. Light restrictions, great for that log cabin you've dreamed of.
See additional pictures at wwww.prostad.century21reg.com
With all the competition out there it is vital for home sellers to set their home above the competition in terms of presenting the home for sale. Check out these tips to make a lasting impression on home buyers.
1. Take a good look around! Don't look at just cosmetic items, what about roofs, potential termite problems, electrical or plumbing issues. Issues such as these are better resolved now before the potential buyer conducts an inspection. Make your home ready!
2. Cut energy costs. Home buyers need to see how efficient your home is which impacts their future utility bills. Caulk, install new door seals if needed, check the insulation in the attic, around pipes and hot water heater. Check windows for leaks and leaky faucets and toilets.
3. Paint, a fresh coat of neutral paint goes along way in making the home look clean and well kept. Odd colors say "work to do" for the buyer!
4. Get the clutter out and make your home look well organized and larger. Have a garage sale or donate items to local charities before your home goes on the market. Make sure home "flows" with clear walking paths from room to room.
5. Don't forget about the outside! Buyers will not want to come in if the outside does not entice them. Rake, pull weeds, touch up front door and trim. Clear toys from yard and easy on the lawn ornaments!
In this market - competition is strong. Make your home stand out with little money and elbow grease!
Take a look at this 5 acres near the Smokies. Wooded with year round creek. Many building sites. Walking trails take you to the creek and provide a nice way to see the land with an easy stroll. All properties in the areaa are at least five acres. Winter mountain view and great Fall foliage. Every season offers something different. Make an Offer! MLS#581158 Owner/Agent
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
WHAT CAN I OFFER YOU AS A HOME SELLER OR BUYER?
;)
;)
