This is a article with an excellent break down of the provision for the tax credit for the first home buyers included in the recently approved stimulus package. This article explains very clearly some of the points that could be confusing for buyers of Princeton homes for sale.
Signed, Sealed, Delivered I'm Yours....is not just Stevie Wonder's 1970 Motown classic, but our $787 Billion (yes, with a B) stimulus plan with various tax cuts and spending programs aimed at reviving our economy. This is our country's largest anti-recession effort since WW2.
Part of the stimulus included a revision to last year's repayable tax credit to an $8,000 tax credit that does NOT need to be repaid.
Be advised, not all tax preparers are aware of all of the provisions of the new tax credit. I had a client call me from Jackson Hewett saying they would not apply the $8,000 tax credit for a house she purchased in 2009 to her 2008 tax year. This is not correct, see When Can the Credit be Claimed below.
So here's a breakdown of the new $8,000 tax credit:
All first-time homebuyers who purchase a home between January 1, 2009 and November 30 , 2009 may be eligible for a tax credit of $8,000 or 10% of the purchase price, whichever is lower. Unlike its $7,500 predecessor, the $8,000 does not need to be repaid.
Tax Credit vs. Tax Deduction
This is a tax credit, not a tax deduction, meaning its a dollar-for-dollar decrease to your tax liability. Also, the tax credit is refundable, meaning you can receive the full value of the credit even if you do not have an $8,000 tax liability.
Phase-Out
The tax credit phases-out for individuals making $75,000 or over modified adjusted gross income (MAGI), and couples making $150,000 or over MAGI. Below are examples of how the phase-out will apply to the two different scenarios.
Individual Making $75,000 or Over
Assume that an individual homebuyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.
Couple Making $150,000 or Over
Assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time homebuyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.
Who Cannot Take the Tax Credit
If any of the following apply, you cannot take the tax credit:
1. Individuals making $95,000 or over MAGI, and couples making $170,000 or over MAGI; meaning you receive no tax credit if your income is this much or more a year.
2. You buy your home from a close relative, including: parent, sibling, spouse, grandparent, child, etc.
3. You sell your home within the first three years of purchasing it. If this occurs, the tax credit must be repaid.
4. You are a non-resident alien
First-time Homebuyer Definition
A first-time homebuyer is defined as someone who has not owned a home within the last three years. If married filing jointly, both spouses must meet the first-time homebuyer definition to take the tax credit.
When Can the Tax Credit be Claimed?
The $8,000 tax credit can be claimed for your 2008 tax year (filed by April 15th 2009), 2008 amended return or 2009 tax year.
Homes That Qualify
The tax credit is applicable to any home that will be used as a principle residence. Based on that guideline, qualifying homes include single-family detached homes, as well as attached homes such as townhouses and condominiums. In addition, manufactured or homes and houseboats used for principle residence also qualify. For new construction, the purchase date is considered the day you occupy the home; therefore you must move-in by November 30th 2009 to qualify for the tax credit.
Also, homes in the District of Columbia qualify for the tax credit.
How About Those Who Purchased Homes in 2008?
Homes purchased in 2008 are subject to the $7,500 repayable tax credit.
Princeton borough homes for sale continue to be in demand by the home buyers looking to be in the downtown Princeton. This is an overview of the market statistics now and at the for the 2008. People considering buying a home in Princeton Borough could find many various prices categories, although there are only 25% homes for less then $500,000.
Princeton Borough homes for sale -Single family homes*
There are 25 homes on the market now
The minimum listing price is $321,000 for a two bedroom 1 bath houses on 7 Lytle street.
the maximum listed price is $3,595,000 for a six bedroom, 7/1 bathrooms house on 17 Hibben street
The median price was $800,000 for Princeton Borough single family homes sold in 2008.
There are 4 houses for less then $500,000
There are 2 houses in the $500,000 to $700,000 price range
there are 5 houses in the $700,000 -$1,000,000 price range
There are 7 houses in the $1,000,000- $2,000,000 price range
There 5 houses in the $2,000,000 - $3,000,000 price range
There are 2 houses over $3,000,000
There were 57 houses sold in Princeton Boro in 2008
19 houses sold in less then 30 days on the market.
Princeton Borough homes for sale -Townhouses and Condos*
There are 13 condos and townhouses for sale in Princeton Borough.
The minimum price is $365,000 for a 1 bedroom, 1 bath house at 36 Moore St. *
The maximum price is $950,000 for new condos on Witherspoon with 3 bedrooms, 2/1 baths.
The median price was $560,000 for Princeton Borough condos and townhouses sold in 2008
There were 15 condos and townhouses sold in Princeton Boro on 2008.
Two condos/townhouses sold in less 30 days.
Data based on TREND MLS (2/6/2009) and is not guaranteed.
This is the live feed of all Princeton Borough houses for sale in the MLS.
There are many reasons why we always get requests for Princeton Borough homes from buyers who are looking for homes for sale in the Princeton area . The reasons are the college town feel of the downtown Princeton where most shops, restaurants, meseums, galleries, Princeton University and princeton schools are within walking distance. Others reason Princeton Borough homes for sale are so popular is because of the lifestyle they afford combining the urban city convenience of and the quiet serenity of a small suburabn town
If you live in Princeton borough, you would most likely be able to walk to the Princeton Library, Princeton High school, and all the downtown Princeton restaurants and shops.
The commute is also very convenient. There is a train called Dinky, which goes from the Princeton University area to the main train station at Princeton Junction. Of course, Princeton Junction is just a few miles drive.
Princeton Borough is a historic college town, offering the charm of the old and the convenience of the new. With a 55 minute train commute to New York and Philadelphia it's a good choice for home buyers looking to combine the urban and suburban life style.
You can see the live feed of the Princeton Borough homes for sale:
Thinking of buying or selling your house In Princeton NJ area - We can help, in particular with Princeton Borough homes for sale.... If you are considering buying or selling a home in the Princeton NJ Hopewell Princeton Junction Montgomery area…
Contact us at (609)-553-4175 for a FREE quote and to find Princeton Mortgage options and to search all Princeton Lawrenceville Princeton Junction Montgomery and Princeton homes for sale right now..
The report contains some positive news, unlike most of the country that suffered much more severe real estate downturn.
Here are several key observations:
The good news is that the average price of $625,064 has increased 5% compared to the prices 5 years ago. Many people who bought their homes before 2003 may still see positive appreciation. That may not be the case for those who bought in the last several years. Read More: Understanding Real Estate Prices.
The not so good news -the average price of homes sold in Montgomery has declined 7% in 2008 vs. 2007.
The highest average price of the homes sold in Montgomery Township in the last 5 years was in 2005. It has declined 8% since that high.
The number of homes sold has declined 16%. This is coupled with an almost corresponding decline in the number of houses listed, reflecting the sellers' hesitation of selling in this market.
The "days on the market" has increased very slightly compared to last year, but rather significantly -70% from 2005, when the houses were selling in record times.
The highest average sold price was $2,300,000 -reflection of the buyers continued interest in the Montgomery Township luxury real estate. This is a 47% increase since 2004.
It is important for buyers and sellers to understand how how these results compare with the surrounding communities. In Princeton average price has increased 10%, in Hopewell - it has declined 9%, and in Pennington - increased 14% compared to last year. The number of houses sold has declined significantly in these communities as well as in Montgomery.
Here are the Montgomery Townhsip homes for sale in MLS:
This question is about how much is OK to share on our blogs and if it could possibly be detrimental to our clients, or to us? These questions are rhetorical and I am looking for you all to weigh in with the answers.
In their recent post AgentGenius raised a question about providing feedback to the listing agents and how it could be detrimental to a buyer, if you represent a buyer. This made me think about things we write about on our blogs. Let me give you some examples. If I write a post about how to find a bargain in Princeton NJ, I am giving away this information to the whole of the Internet. including the buyers represented by other agents. Wouldn't it be to the benefit of my clients for others not to have this information? There are many posts on blogs of the "buy of the week, month, etc". If you as selling agent and say that the property is priced bellow the market, is does this present a conflict for the seller? If you are representing buyers, wouldn't you want to share this info just with your clients, and not the whole wide net?
Posts with generic ideas on how to buy and sell real estate are a dime a dozen, so there is no issue there. But suppose you have some clever and unique idea, wouldn't you want your clients only to know -to give them the competitive advantage? How about competition? We all have access to the same data. It's the analysis and interpretation that is important. is it to the agents' benefit to educate their competition on this analysis?
If competing agents pass this info to their clients, does it diminish the advantage your clients have because of your knowledge?
Just pondering...I am sure the brilliant minds on this forum had it all sort it out:)
If you are considering buying a townhouse in Princeton NJ - this is an overview of what Princeton townhouses for sale you could find in MLS.
Princeton NJ is an attractive choice for many home buyers because it offers not only single family homes but also a wide choice of condos and townhouses. Princeton townhouses could be found in many neighborhoods and many price ranges.
The first time home buyers often seek these Princeton NJ homes for sale, because they represent the entry point for real estate in Princeton. There are other buyers who are interested in these homes because they are looking to minimize home maintenance, or because they are downsizing.
There are luxury townhouses such as in Governor’s Lane, with prices in the over $700,000 range. Homes in Princeton Ridge on the Stonewall Circle present an interesting option because design because they are semi-attached, not multiply attached as the townhouses usually are. They sell in the $700,000 -$800,000 range. Buyers could also find condos/ and townhouses for sale in the mid-range of over $500,000, for example in neighborhoods such as Campbell Woods. There are many other possible neighborhoods, such as Washington Oaks, Queenston Common in the Princeton Borough and Fieldwood Manors development in Princeton Township.
There are several such Princeton townhouses and condos for sale available in the MLS.
If you are considering buying a townhouse in Princeton - this is an overview of what you could find and a chanve to see all Princeton homes for sale in MLS.
See the live feed od all Pinceton MLS listings for
If you are Princeton real estate home buyer you may want to know about the upcoming tax assessment. Thinking of selling your Princeton property? You may want to think about the implications of this on you sale.
If live in Princeton Township you most likely know already that the tax assessments will take place in 2010. The first step in the revaluation would be the inspection by Appraisal Systems, a company hired by the Princeton Township. The Appraisal Systems will visit each Princeton Twp. property and conduct an exterior and interior inspection. According to the Princeton Township they will measure the exterior and all improvements and photograph the front and rear of buildings. The interior inspection would be conducted either on the first visit, or if no one is home at a subsequent date. Princeton township says to "not allow anyone to enter your home without proper identification".
If you as a Princeton Township homeowner think that your Princeton property hase a "unique condition that influences value" , you could send documentation to Appraisal Systems Inc,. * Catano Avenue, Morristown, NJ 07960.
Because of the declining home values for some Princeton homes for sale, you could benefit from knowing your property market value (which is not the same as appraised value) before the appraisal. The market value information I provided helped some homeowners to reduce their property tax.
Is telling the truth in real estate all it's cracked up to be? Remember the classic scene from "A few Good Men" when Jack Nicholson (as Col. Jessep) shouts at Tom Cruise( as Kaffee ) "You can’t handle the truth! " in response to Kaffe's request :"I want the truth! ". Are real estate sellers now similar to Kaffe? They want the truth but "They can't handle it!!".
To be clear: I completely reject the warning of this post title. l will continue to tell the truth, no matter what. And I am learning valuable lessons from this experience.
I recently "lost" several perspective clients on account of them not liking my message.
This is what happened in a nutshell. Mr. X contacted me to sell their house in town A. The sellers believed their house was a high end property. We discussed the market and I showed them the statistics indicating:
There was only one sale of $2,000,000+ in this town.
There were many more sales in this price range in the neighboring town B.
I explained that when real estate buyers evaluate where to buy, preservation of capital and risk management are part of the consideration. Although for the same money in town B buyers could get less then in town A, if buyers view town B as a safer investment, they may choose to buy there.
Mr. X indicated there was no financial pressure for them to sell. I suggested to hold off on the sale for a few years and rent the property in the meantime.
If they wanted to sell now I suggested things that could be done to make the house look better.
Truth telling did not bode well for me in getting this listing.This information was interpreted as me being negative about their town and their house. I am not sure if a real estate agent with "Better" news about luxury real estate in town A was received better.
I made a rule at the start of my career as real estate agent in Princeton area to tell my clients the bad and the good of the real estate market - as I see it. This knowledge, I thought, is:
Why sellers should pay money to a real estate agent;
What should help them price their home right from the outset;
Market it in a way that beats competition;
Negotiate the best selling price;
Deal with many problems that invariably come up during the selling process.
I was proven wrong.
Why do I still insist on telling the truth? I am content with my old rule, even if on occasion I may "lose" some business, because:
The stakes are too high when buying or selling real estate to sugar coat what is happening.
It is not productive to repeat the gloom and doom scenarios offered by the media, if that is not what is going on in the local market.
The only way to deliver useful information to buyers and sellers is for the agent to know the facts on the ground.
Get smart by knowing exactly where you stand in this market. Only then could you make the right decisions. That's my best advice for the real estate buyers and sellers now.
Not surprisingly, my clients are the smartest of them all. To get the best deal or to sell at the best price, they are not "afraid to handle the truth" .
Princeton, New Jersey is a town known world wide for it’s long and significant history and it’s acclaimed present. This vibrant community attracts discriminating international and domestic luxury home buyers.
If you are looking to buy a luxury home in New Jersey, 20 Bogart Court, Princeton NJ should be on your must see list. Located on the picturesque 6.5 acres this estate Princeton home was built by the present owners to be their dream home. Now is a chance for another family to make it their dream home.
This house lacks notning for makes easy and gracious living. From the dramatic foyer to the gourmet kitchen, to lavish bath for each of the 5 bedrooms, to the conservatory and the view to the natural beauty outside – this home offers it all in high class.
The lower level can be best described as “unbelievable”. The movie theater, the gym, the billiard room and an incredible second kitchen would make you never want to go upstairs.
This luxury Princeton home makes entertain guests a pleasure. Those who are compelled to stay, from party guests to visiting relatives, could do so in a style possible only in a five star hotel. A separate guest apartment is located near the main house and features the same high-end amenities as the main house.
Good stories are best told in pictures and bellow are some of the highlights of this distinguished Princeton estate home for sale. This home is located in the neighborhood of other stately homes -you can see the location on the map below.
This Princeton home is offered at $3,675,000. Please call 609-553-4175 for details and confidential viewing. We speak many languages and work with international buyers.
If you like reading New York Times, read today's Sunday edition article Battling for Bidding Wars. Here is a shameless plug: I am in it :) I mean some of the information from the one hour interview is there.
I received a call form the New York Times last week. They wanted to get my opinion on multiple offers in the buyers market. Why did they call me out of cozillion local real estate agents? If you answered, blogging, you got it right.
Back in late summer I wrote a post on Multiple offers in the buyers market, describing why such a phenomena was possible in Princeton. Fast forward to the New York Times call. The time is now post September 2008 market crash and it was an interesting question for them to revisit.
I was on my way to meet up with some people at The Inman Connect, so I couldn't talk with reporter for long. We agreed to pick up the conversation the next day. I spend a few hours researching the topic to come up with a broader view then just my personal experience with multiple offers. I found a few interesting things which are described in this follow up post Multiple offers in buyers market now.
Interestingly enough, I borrowed the title for this post from another article " Who else wants to be in the New York Times" I wrote back in my early days on Active Rain, urging AR gods to bring attention to this forum as a way for the press to learn what's really going on in the real estate from people who practice it every day. I never thought the NYT would call me:)
With my 2 seconds of fame I am wondering it's possible for anyone on Active Rain to get their time in the spotlight? Blogging on the topics of interest to the consumers seems to be one way.
rets
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rhetorical and I am looking for you all to weigh in with the answers.
Jessep) shouts at Tom Cruise( as Kaffee ) "You can’t handle the truth! " in response to Kaffe's request :"I want the truth! ". Are real estate sellers now similar to Kaffe? They want the truth but "They can't handle it!!".
some of the information from the one hour interview is there.
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