It's a perfect up to move up for those who really need it. It's a perfect incentive for those homeowners who really deserve it.
Please read the excellent explanation of new home buyers tax credit. The only thing which I would mention is that this tax credit is not only move-UP buyers' credit. You don't need to pay more for your new home than you paid for your old one. You just need to move to a new place.
You've just closed (or will be closing soon) on the purchase of your new home. You've been told you're eligible* for the new $6500 fully-refundable federal
Move-Up Home-Buyer Tax Credit.
You've got just one question:
When do I get my money?
The short answer is:It's up to you!
But your available options will be determined by whether the closing date of your purchase is:
Between November 7 and December 31, 2009 Or after January 1, 2010.
And you will have to keep in mind the income limitations applicable to the calendar year option you pick.
For purchases closed between November 7 and December 31, 2009, your options are:
1) Elect to File as if the purchase was made in Tax Year 2008.
Here's How:
Wait for a new November 2009 revision of Federal Tax Form 5405.
File the new Federal Tax Form 5405 to compute and claim the credit.
Attach a copy of your HUD-1 settlement form (closing statement) to that new Form 5405 as proof of the completed home purchase.
File a Federal Form 1040X (Amended Return) to amend Line 69 of your previously filed 2008 Federal Tax Return.
The IRS says to allow 3-4 months for a response to an amended return. They regularly beat this turn-around last summer, but may take longer this winter.
2) File as if the purchase was made in Tax Year 2009.
Here's How:
After January 15, 2010:
File a 2009Federal Form 5405(not yet published) to claim the credit.
Attach a copy of your HUD-1 settlement form (closing statement) to Form 5405 as proof of the completed home purchase.
File your regular 2009 Federal Income Tax Form 1040 in the usual way, reporting the credit amount on Line 67.
Expect your refund on the usual timeline a few weeks after you file.
For purchases closed after January 1, 2010, your options are:
1) File as if the purchase was made in Tax Year 2009.
Here's How:
After January 15, 2010:
File a 2009Federal Form 5405 (not yet published) to claim the credit. Attach a copy of your HUD-1 settlement form (closing statement) to Form 5405 as proof of the completed home purchase.
File your regular 2009 Federal Income Tax Form 1040 in the usual way, reporting the credit amount on Line 67.
Expect your refund on the usual timeline a few weeks after you file.
If you purchase you home after filing your 2009 income tax return (but before the April 30 deadline to have your purchase under contract and the June 30 deadline by which the sale must close) you can elect to file a 1040X to amend 2009.
2) File as if the purchase was made in Tax Year 2010.
Here's How:
After January 15, 2011:
File a 2010Federal Form 5405 (not yet published) to claim the credit.
Attach a copy of your HUD-1 settlement form (closing statement) to Form 5405 as proof of the completed home purchase.
File your regular 2010 Federal Income Tax Form 1040 in the usual way, reporting the credit amount on the appropriate line.
Expect your refund on the usual timeline a few weeks after you file.
Here's how you may want to decide which of those options to choose:
If you choose to file the credit for 2008, the income limits (Modified Adjusted Gross Income - MAGI) associated with the First-Time Home-Buyer credit on December 31, 2008 will apply. Those were:
$ $75,000 for single filers $ $125,000 for married filing jointly.
Also applicable for 2008 will be the pro-rating/phase out of the tax credit for those having incomes just above those stated limits ($95,000 and $145,000).
If you choose to file the credit for 2009 or 2010, the income limits (Modified Adjusted Gross Income - MAGI) associated with the credit on December 31, 2009 will apply. Those are:
$ 125,000 for single filers $ 225,000 for married filing jointly.
Also applicable for 2009 and 2010 will be the pro-rating/phase out of the tax credit for those having incomes just above those stated limits. See you tax advisor for the details of this provision, but the bottom line is:
If the applicable income phaseout would reduce your home buyer tax credit amount in the present year and a larger credit would be available using the prior year MAGI amounts, then you can choose the year that yields the largest credit amount.
The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
I
*(i.e. I've lived in my old personal residence for five (5) out of the last eight (8) years.)
************
Jim Hale
Principal Broker
Graduate, REALTOR Institute e-PRO actionagents.net 1715 Linnea Avenue Eugene, OR 97401-1962
Can it be too many advantages of buying Real Estate now?
Why in the world people who need to buy the house in Solon, Mayfield Heights or anywhere in Greater Cleveland are still thinking and waiting for something?
Isn't it better just do it?
Simple list of opportunities for both first time home buyers and for moving up buyers is impressive.
Still a very good inventory of solid homes and condos
Still very attractive prices
More chances to do your due diligence - inspect the property, get it fixed by sellers if necessary
As a result, much better condition of the property
More qualified Real estate professionals working for you. It's not a secret that many part timers or agents who could not earn enough to support their family or lifestyle, simply left Real estate for other occupations
Let's say, you decide to buy the $200,000 home in Cleveland OH.
You make enough money and you saved enough to put 20 % down.
You earned a high credit score, so you get perfectly qualified for conventional loan.
Using a simple mortgage calculator you can easily compare your mortgage payments and savings if you borrow at 4.75 % (available today) vs. very respectable 6.25 %, which many homeowners recently dreamt about.
Purchase price
$200,000
Down payment
$40,000
Loan amount
$160,000
30 yrs. Fixed Interest rate
4.75%
6.25 %
Monthly Principle and Interest
$834.64
$985.15
Interest to be paid over the duration of loan
$140,468
$194,653
Cost of not taking advantage of current low interest rate
$54,185
Why wait?
Any of home buyers' advantages listed above may vanish soon.
If you really need to buy or move up, just do it!
Call us today 216-548-4663 and schedule your free home needs evaluation session with Local-n-Global Real Estate consultants.
I will host a Broker's Open House in Big Turtle II condominium 11/03/2009 between 11:30 am and 1:30 pm. As usually, delicious appetizers will be served.
Dear agents! Don't assume that all the condos are the same or very similar. Just stop by and see how diligent renovation, great taste and decoration skills made this three bedroom Willoughby OH condo different.
It's priced obviously higher than some bank owned units in the same Big Turtle II. However, the scope and quality of renovation, love and care is incredibly larger than a difference in prices.
Your clients' carefree living, enjoyment and gratitude are priceless!
Please visit our Open House and let your clients know about this wonderful deal.
Richmond Heights OH Real Estate News: Condominiums in Richmond Place are still desirable.
Local-n-Global marketing system helped to sell another condo in Richmond Heights OH.
Despite the fact that number of condominium units sold in Cuyahoga County in 2009 decreased in comparison with previous years, there is still some hope for sellers and for buyers of condominiums in Richmond Heights OH.
I am very glad to announce that another lucky buyer just bought the condo in Richmond Place listed by Local-n-Global Realty.
As of 10/29/2009, five Richmond Place condominiums sold in 2009.
Two of them were Local-n-Global listings. The sellers of both units received offers in first few weeks upon listing and closed within first three months on the market.
There is a small secret of successful sales: right pricing, right marketing, right showing condition, right buyers' qualification.
Local-n-Global listing specialists know how to sell the condominiums in Richmond Heights on any market.
Please call us 216-548-4663 if you need to sell your condo in Richmond Place or anywhere in Greater Cleveland.
Friendly Clevelanders. We are patriots and fans of our city.
Rich culture. Cleveland Orchectra. Cleveland Museum of Art. Cleveland Playhouse. Cleveland libraries and much, much more
Multi-cultural Diversity. Cleveland is the city with the rich history of European immigration. African-American, Asian-American, Middle Eastern, Hispanic communities contribute a lot to the flavor and beauty of the City
Mayfield Heights OH. Good news for the home owners who need to sell the house - well prepared houses sell within first weeks on the market.
Another Mayfield Heights house sold by Local-n-Global Realty within first three weeks on the market. Our clients, the sellers of the nice newer home in Mayfield Heights OH entertained the multiple offers on their house. Three months from listing day to closing!
This happy case proves the old good formula of the successful sale:
Supply + Price
Time on the Market = Product Quality + Marketing
I want to tell you about a Product quality. The house is so nice and was so very well prepared for showings! No wonder that multiple buyers were making the offers to buy this Mayfiled Heights home.
Please see the presentation below and be happy for the buyers who not only purchased the beautiful home but also closed timely in order to take advantage of the First time home buyers' tax credit.
If you need to sell your house in Mayfield Heights or in any other suburbs on East side of Cleveland, please do not hesitate to call Local-n-Global listing specialists at 216-548-4663. We offer the free home listing and selling planning session for you.
$120,000 - Willoughby Big Turtle II condo - must see! Buy and get $8,000 tax credit.
Location: Big Turtle II
Condominium in Big Turtle II of Willoughby offered for sale. Very special renovation, re-decoration and lovingly care distinguish this home from the others.
Wonderfully remodeled three bedroom unit is ready to move in and enjoy. Everything has been recently redone: windows, kitchen, bathrooms, flooring, painting, finished basement. Very neat and neutral, tastefully decorated. Kitchen with all newer appliances, cabinets, countertops and backslash flows into adjacent dining area with sliding door to the patio.
Sunlit and classy Great room is set for family gatherings and enjoyment. Beautiful laminate floor, warm and yet neutral colors, newer sliding door, tasteful drapes make this room so inviting.
Bathrooms are finished with beautiful ceramic tile. All newer fixtures, sinks, vanity, whirlpool bathtub, classy light fixtures make the bathrooms luxurious. Spacious bedrooms are so cute and attractive!
New owners will love a plenty of closet space on the second floor and nicely organized utility / laundry room in the basement. Quality washer and dryer stay.
Maintenance fee of $218 per month includes landscaping, snow removal, recreation, exterior maintenance, insurance, water and sewer. Great value considering that there is a swimming pool, tennis courts, play ground, party center and wonderful walking paths in Big Turtle II!
Big Turtle II condos are FHA approved. Great chance for first time home buyers to buy it with low down payment and receive $8,000 tax credit if closed before November 30, 2009. Perfect fit for those who want a care-free condominium lifestyle in a renovated, lovingly decorated space.
Don't be confused with the lower competitors' prices. This unit had an extensive and expensive renovation during last 18 months. Over $40,000 invested by the sellers in the complete renovation and beautification of this unit. You can e-mail us at Realty@Local-n-Global.com to request the Before and After pictures of this condo. You will be surprised how much a good investment, great taste, good workmanship, love and care can make!
Please call our 24/7 Real Estate Hotline ext. 145 877-770-5551 or Svetlana Stolyarova directly at 216-548-4663 to set up a private tour to see this wonderful unit. Don't miss your chance! Call today! condominium
Buyers always want to buy your home for less than you want to sell it for. Is it always true? Is there any way to avoid such a contradiction?
Right selling strategies help many home owners to sell homes in Cleveland OH for the top dollar and quickly.
Right home selling strategy means:
Price it right! Right pricing is the best cure from the unreasonable buyers' extreme proposals.
Prepare it right! Nice looking, clean, light, staged homes sell faster and for more money.
Show it! When you put For sale sign, get ready for a "Model home" mode. Make your home accessible!
Chose the right agent and plan the right marketing!
Not all the Real Estate agents are equal! Before signing a listing agreement with any real estate agent, make sure you know EXACTLY how your home will be marketed. There is a huge difference in marketing and negotiation skills, selling experience, and track records!
Most of the serious Real Estate agents prepare a formal listing presentation to show you, the home sellers, how your home will be marketed for sale. Don't list your home with a real estate agents who did not bother to make a presentation of their skills, who did not prepare a marketing plan and did not do the Comparative market analysis for you!
We in Local-n-Global Realty take it very seriously. We make free listing presentations and prepare CMAs for prospective home sellers very often. We know exactly what should be done to put a big SOLD sign in your front yard.
If you need to sell your house in Mayfield Heights, condo in Richmond Heights, home in Solon or in other neighborhoods of Greater Cleveland, please contact us. We'd love the opportunity to make a presentation for you. It is totally free and without any obligation.
Call us 440-247-5388 or e-mail to: Realty@Local-n-Global.com.
Cleveland Real Estate market has one strength which neither crisis, nor falling prices could weaken. This strength is in our Realtors(R).
I am positive that home buyers and home sellers who buy or sell the houses in Solon, Pepper Pike, Mayfield Heights, Twinsburg and other communities of Greater Cleveland know it by heart that no matter what side of the transaction our Real Estate agents represent, or to what company they belong they work as one strong, professional team to make our clients happy.
Today is a big day. We closed another Real Estate transaction in Solon OH. It was probably the longest deal in my career. There was a cloud on the title which took over two and a half months to clear. My clients - first time home buyers were patient and understanding. The sellers were incredibly cooperative and diligent. Lender found the solution for rate lock extension. Everyone did a great job. However there was one person who managed everything and who was amazing. It's a listing agent Robert Gallmann from RE/MAX Haven. I am honored to extend my respect and gratitude to Rob and all members of his team for their job.
We worked together with Suzanne, Robert and all Gallmann team on few deals before. It is always a big pleasure to deal with this team. What a professionalism, leadership, ability to find a solution and great talent to cooperation!
I always believe in the importance of cooperation for real success in our business. It's not a secret that we are in a very competitive business. I think, it's beneficial for our clients that we compete with the very strong professionals.
Most of home sellers in Greater Cleveland and everywhere in the world interview at least two, sometimes more different agents. When Realtors(R) present our services to the home sellers we always try to show why should they chose us as their agents. What we do differently. What is our unique strength. How our strength can help the sellers to solve their problems in a better way.
However one of the most important parts of any listing presentation is explanation of the principles of cooperation between the brokers within MLS.
What we always hope and rarely tell our clients about is how easy it is to deal with the well trained, experienced, smart and educated agent on both sides when you sell your home.
Why don't we share the stories about our partners from different Real Estate companies.
Here in Cleveland OH we see fewer For Sale By Owner signs in the past two years. It's because the home sellers in Greater Cleveland do realize how much work and responsibility is involved in selling Real Estate in Ohio, especially during the hard times in economy.
If you are going to sell your house in Solon, Mayfield Heights, Twinsburg or other areas of Greater Cleveland, please read this excellent advice given to the home sellers by my colleague Dr. Chantal Saucier. It's real good!
One comment we often hear as real estate professionals is "I'm selling my home myself to save the commission." That is fine so long as you don't think that your potential buyers don't know that.
In fact, did you know that there are only 4 kinds of buyers out there? That's right, 4. And they are either working with a Realtor or they, too, will want to save the commission. If you have a "For Sale By Owner" sign in your yard, everyone knows that you are not paying a commission to a professional.
1. First time home buyers: They are the most likely to seek the help of a professional because they do not know all the ins and outs of the home buying process. Even if they come across your home and like it, they will want their agent involved. Being open to working with a buyer's agent and paying at least some commission might help you get your home sold.
2. Relocating buyer: They, too, usually work with a real estate agent because they are not in town, yet. Again, if you are willing to pay a buyer's agent commission, you may be able to work with one of these buyers and sell your home, that is, if you are available to show it when this buyer is in town house shopping. If not, they might just buy your neighbor's house because it's listed and on a lockbox and they were actually able to view it.
3. Move up buyers: They tend to feel more confident about the process because they have been there before. However, if they choose to work on their own, they'll negotiate you down on your price to save some of the commission themselves. Since 2 out of 3 FSBO that go under contract do not close when no Realtor is involved, it might not matter if you split the would-have-been commission with this buyer. The question is: can you get them to the closing table?
4. Investors: Probably the most savvy buyer out there and you can bet that they will not pay you a commission to work the sale of your home for you. Unless you are an investor yourself and you've sold many homes in the past, this buyer knows more about the process than you do and he/she knows that they will have to do all the work. And, unless you are an awesome negotiator, you will not save money if your buyer is an investor. Not a penny.
There you have it! These are the only 4 kinds of buyers out there, no more, no less.
Here's another way to look at it: appraisers do not care about the commission. Your house is worth what it is worth, whether or not there is a commission involved. For example, if you live in a neighborhood where homes of similar age and sizes sell for 150K, then your home is worth 150K.
With a 6% listing commission, you would have to pay 9K in commission, usually split between the listing and the selling brokers (if two agents are involved). If you sell on your own, you are not going to save the full 9K. Buyers will want to split those savings with you and might only offer you 145K for your home. If this is acceptable to you, all is good, but your savings are now down to 4K. If you calculate 2 or 3 months extra on the market (and 2-3 months of extra house payments), the advertising and signs costs, and the time involved in showing your home numerous times to buyers who may or may not qualify to buy it, is it really worth the aggravation? Besides, getting an offer/contract on your home is the easy part. Do you know what to do if you ever get that far?
Exceptional listing services for home sellers in Greater Cleveland.
Svetlana Stolyarova, Broker of Local-n-Global Realty is licensed to practice Real Estate in the state of Ohio.
Buy globally!
Transnational Referral Certificate.
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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.
Isn't it better just do it?
I always believe in the importance of cooperation for real success in our business. It's not a secret that we are in a very competitive business. I think, it's beneficial for our clients that we compete with the very strong professionals.
;)
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