Rhode Island Real Estate

SOLD!! Luxury property in Newport, RI

William Raveis — Thu, 10 Dec 2009 12:48:45 -0600

"RESTHAVEN" DESIGNED BY FAMED AMERICAN ARCHITECT, RICHARD MORRIS HUNT, THIS IS A RARE ARCHITECTURAL GEM ON BELLEVUE AVENUE. EXPANSIVE LIVING AREAS, EXCEPTIONALLY LARGE KITCHEN, NEARLY 1 AND 1/2 ACRES ON BELLEVUE AVENUE.

Here's a link:

http://arthurchapman.raveis.com/propdetail.asp?KEY=2934274&AGENT=5074&PG=agentproplist.asp&AGT=5074&SITE=agt&OFC=24902

This property was on the market for only 42 days! Listed on September 23, 2009 and went under contract on November 4th, 2009. We had a multiple bid situation and went to "highest and best" offer.

This is a truly wonderful property in an excellent location on Bellevue Avenue in Newport. Originally built in 1871, the property remained in the same family until 1999 when it was sold as an estate sale. The home will be lovingly restored to the original grandeur by the new owners. We can hardly wait to see this home finished!!

The real estate market is alive and well in Newport!

Carnegie Abbey - Luxury Townhouse with dramatic views!!

William Raveis — Mon, 07 Dec 2009 16:23:22 -0600

Beautiful Carnegie Abbey Golf Lodge residence with magnificent views of the 18th green and Narragansett Bay. This 2 Bedroom, 2 ½ bath residence is just next door to the Clubhouse, close to all of the amenities and services. Shamrock owners will enjoy a fabulous widow's walk, stone fireplace, a golf cart, storage and more. $1,250,000

The Carnegie Abbey Club is a private sporting estate dedicated to the art of living well. Located on Narragansett Bay in Portsmouth, Rhode Island (six miles from Newport), the Club provides members an oasis of luxury and comfort in which to pursue the pleasures of life. In addition to a Scottish links-style championship golf course designed by the renowned Donald Steel, the Club offers equestrian facilities, yachting, tennis, fishing, and cultural events-as well as a variety of incomparable waterfront homes.

Visit www.arthurchapman.raveis.com

Rhode Island Real Estate

William Raveis — Mon, 07 Dec 2009 15:52:47 -0600

Rhode Island Single Family
	Active	Sold	Average Sales Per Month	Months of Inventory	Percent of Supply	Percent of Sold	Years of Inventory
Total	5,808	7,615	635	9	100%	100%	0.8
$0K - $200K	1,862	3,921	327	6	32%	51%	0.5
$201K to $300K	1,480	2,051	171	9	25%	27%	0.7
$301K - $400K	837	835	70	12	14%	11%	1.0
$401K - $500K	514	371	31	17	9%	5%	1.4
$501K - $600K	306	170	14	22	5%	2%	1.8
$601K - $700K	182	98	8	22	3%	1%	1.9
$701K - $800K	135	49	4	33	2%	1%	2.8
$801K - $900K	88	25	2	42	2%	0%	3.5
$901K - $1,000K	78	11	1	85	1%	0%	7.1
$1,001K - $2,000K	199	58	5	41	3%	1%	3.4
$2,001K - $3,000K	65	12	1	65	1%	0%	5.4
$3,000K +	62	10	1	74	1%	0%	6.2

Our months of inventory is getting much more in line with what we need to see for any appreciation in 2010. With virtually no new construction, we will continue to see erosion in supply.(Please note that the Active category includes all Pending sales; short sales, market sales; pendings, etc).

One thing that really jumps out at me is the concentration on the low end. 89% of all sales in the State of Rhode Island in the past 12 months have been under $400,000. Guess the first time homebuyer tax credit really is working!! Also, investors are jumping into the market in a big way. Why not? Lots of multi-family properties are paying over 10% return on cash - I've seen some deals that are paying nearly 40% return on cash! Who wouldn't make that investment!!!

Newport County, RI

William Raveis — Thu, 03 Dec 2009 18:01:13 -0600

What a diffference a few months can bring! In February/March the end of the world was near, but now we have a vibrant and very active real estate market!

Sales volume will be up over 6% from last year, prices are stablizing and some markets have a VERY low supply. For instance, properties under $400,000 in Newport and Middletown are seeing less than 5 months of supply - indicating APPRECIATION!! WOW! Prices going UP!? CRAZY!!!

Yes, Virginia, there is a Santa Clause!

Keep Hope Alive!!

If you are thinking of buying in the next year or so and decide to wait - all indicators say that you will be seriously dissapointed. Analyze the market, find a good buyers broker and DIVE IN!

Visit www.arthurchapman.raveis.com for local housing data. Do your "home"work!!

Rhode Island Real Estate Recovery

William Raveis — Thu, 03 Dec 2009 17:24:46 -0600

Rhode Island has seen a significant recovery in the real estate market. Our volume of sales is a strong indication of this rebound. While our unemployment numbers are still very high, there is significant job creation slated for this year in certain areas of the state. Our supply is dropping rapidly and there isn't a tremendous amount of available land for new construction. Therefore, appreciation in our real estate market is near, if it hasn't already started. In some markets we are seeing less than a 4 month supply of properties on the market - which would suggest significant appreciation in the short term. With historically low interest rates and low supply, NOW is the time to invest!

The month of November saw a strong number of closings. In fact, it was one of the strongest months in the past 13 years!

Our sales are already 17% above last year and are projected to be on par with 2007.

We are offically "walking out of the woods".

Keep Hope Alive!!

Waterfront Home

William Raveis — Fri, 09 Oct 2009 06:51:55 -0500

This home is designed to bring water views into every room in the house. Features include high ceilings, spacious rooms and natural stone fireplaces. First level entertainment and media room with fireplace accessing sloping waterfront backyard. Second level is surrounded by walk out deck and sliders in every room for spectacular sunrise views. Stainless eat in kitchen, beautiful hardwoods and open floor plan.

Get ready to move in and enjoy, your waterfront dock is waiting!

http://arthurchapman.raveis.com/propdetail.asp?KEY=2801651&AGENT=5074&PG=agentproplist.asp&AGT=5074&SITE=agt&OFC=24902

Return to Increasing Real Estate Prices?

William Raveis — Fri, 09 Oct 2009 06:49:01 -0500

The demand for real estate on Aquidneck Island has surged this past summer and suddenly we are facing a shortage of supply! Are we ready to see prices INCREASING in the area soon? Prices going UP? Very strange, but a real possibility.

Newport County has seen a nearly 30% reduction in values since 2006. That's a big chunk of the value of your home just vaporizing in the air. Gone..But recent demand in the under $400,000 range of the market has been very strong. In fact, we are at 8 months of supply on Aquidneck Island between $300,000 and $400,000. This short supply could create increasing prices in the area as our demand isn't slowing.

In fact, there is significant job creation happening on the island, bringing in 300 full time employees to the US Naval Base and the student population is slated to nearly triple - from current 6,000 to projected 16,000.

Strong demand + decreasing inventory=Rising prices!!

Perhaps we are starting to come out of the woods!

Keep Hope Alive!

Newport RI Luxury Real Estate

William Raveis — Mon, 05 Oct 2009 06:00:20 -0500

"RESTHAVEN", Designed by famed American architect, Richard Morris Hunt, this is a rare architectural gem on Bellevue Avenue in Newport, RI. Expansive living areas, soaring ceilings, exceptionally large kitchen all with nearly 1 and 1/2 acres of prime real estate on Bellevue Avenue. Just steps from Bailey's Beach!

http://arthurchapman.raveis.com/propdetail.asp?KEY=2934274&AGENT=5074&PG=agentproplist.asp&AGT=5074&SITE=agt&OFC=24902

RI Real Estate - Wait for the Government to extend tax credit???

William Raveis — Thu, 24 Sep 2009 09:40:49 -0500

I wouldn't bet on it. And even if they do, interest rates will be much higher very soon.

The Fed announced that they will be scaling back the purchases of mortgage backed securities. This program by the Fed has artificially kept mortgage rates low by providing a funding source for the resale of mortgages.

When the Fed starts to back out of the purchasing, there is no assurance that the private market will jump in. In this instance, real rates will rise to create the demand for these products on the secondary market.

What does this mean? If you can now lock in at 5% and take advantage of the tax credit - do it. Even if the tax credit is extended you could be losing money! For if real mortgage rates rise by 1%, you've lost 10% of borrowing power. So if you qualify for a $200,000 mortgage today, you would only qualify for $180,000 tomorrow.

He who hesitates is lost.

Newport, RI

William Raveis — Fri, 03 Jul 2009 06:06:01 -0500

Final numbers for the second quarter from Newport County, RI.

Single Family
	# Sales	Average List	Average Sale	Median List	Median Sale	Days On Market
2008	259	$ 585,575	$ 544,958	$ 395,000	$ 366,500	131

2009	221	$ 456,464	$ 412,612	$ 319,000	$ 294,000	146

# or $ Change	-38	$(129,111)	$ (132,346)	$ (76,000)	$ (72,500)	15

% Change	-15%	-22%	-24%	-19%	-20%	11%

First the bad news. Median sale price is down 20% from last year. Average sales price is down 24% from last year. Overall the average sales price is down over 30% from peak in 2004. Some analysts are calling for a total reduction in value of US housing by 40% before recovery. So, if you look at it on the bright side, we are nearly through this awful period.

I do think our market will recover a bit faster due to the significant job creation at the US Naval Base and General Dynamics. Defense spending isn't going to slow down in our world today, so I think we are at, or very very close, to bottom.

The pending index is approaching 5 sales per day in Newport County. This is the highest the pending index has been in over 3 years!

Keep Hope Alive!

Open House June 28th!

William Raveis — Sat, 27 Jun 2009 06:21:09 -0500

You'll want to stop by these Open Houses this weekend.

55 Shore Road, Bristol. Waterfront with dock!

Open Sunday from 11 to 1.

http://arthurchapman.raveis.com/openproplist.asp?STATE=RI&AGT=5074&SITE=agt&town=C598_598&FROM=openlist&city=Bristol

96 Ferry Landing Circle, Portsmouth. Top of the line condo!

Open Sunday from 2 to 4.

http://arthurchapman.raveis.com/openproplist.asp?STATE=RI&AGT=5074&SITE=agt&FROM=openlist&town=C623_623&city=Portsmouth

108 Washington Street, Newport. Waterfront With Dock!

Open Sunday from 11 to 2.

http://arthurchapman.raveis.com/openproplist.asp?STATE=RI&AGT=5074&SITE=agt&FROM=openlist&town=C618_618&city=Newport

Each property is something you should see! Please stop in and see these great homes!

Gorgeous Newport Condo

William Raveis — Fri, 12 Jun 2009 06:20:06 -0500

http://arthurchapman.raveis.com/propdetail.asp?KEY=2821235&AGENT=5074&PG=agentproplist.asp&AGT=5074&SITE=agt&OFC=24902

QUALITY CONSTRUCTION AND ELEGANT DETAILS ABOUND IN THIS GORGEOUS END UNIT. BRIGHT AND SPACIOUS LIVING AREAS AND OPEN FLOOR PLAN FOR TODAY'S LIVING! LARGE MASTER SUITE ON THE FIRST FLOOR. DRAMATIC WATER VIEWS FROM PORCH AND DECK. FIFTEEN MINUTES TO DOWNTOWN NEWPORT, 20 MINUTES TO PROVIDENCE AND 10 TO DOWNTOWN BRISTOL. TENNIS ON SITE!

Newport Investment Property - Now under Contract!

William Raveis — Fri, 12 Jun 2009 06:14:51 -0500

http://arthurchapman.raveis.com/propdetail.asp?KEY=2820366&AGENT=5074&PG=agentproplist.asp&AGT=5074&SITE=agt&OFC=24902

6 units in 2 buildings. Two separate lots. 10 Dresser Street is a 4 family home, separate utilities. 4 bedrooms, two bedrooms each. 12 Dresser Street is a 2 family home, each apartment has 3 bedrooms.

This property is in in a location that is perfect for summer rentals, college rentals or perhaps conversion to condominiums.

Raveis.com just keeps getting better!

William Raveis — Mon, 25 May 2009 05:33:06 -0500

Raveis.com now has more features to help buyers find the right property, the right mortgage, the right insurance...and the list goes on.

Check out the mapping feature now. This enhancement allows the consumer to really narrow down the area and area amenities. So not only can you preview the homes, you can find out the distance to the local schools, houses of worship, cinemas, shopping, etc. There are also tabs for crime statistics, area demographics, and weather...everything you would want to know about a community before you get there.

When you do find a property that looks interesting, the display to the consumer is fantastic. Here's one of my listings for your reference.

http://listings.raveis.com/homes/RI/PORTSMOUTH/02871//536944/index.html

"The Best Website in Real Estate" just keeps getting better.

Expansion into NY!

William Raveis — Sun, 24 May 2009 07:17:25 -0500

Realty 3 in Rye, NY has joined William Raveis Real Estate! Joan Bomann and her 30 sales associates enjoy a great reputation in the Westchester County marketplace for the past 34 years. Welcome to the team!

So now Raveis is in 4 states; #1 in CT, #2 in MA, growing strong in RI and now in NY. The goal is "Manhattan to Maine". With the most powerful website in real estate, fantastic marketing, unparalleled education and training and a myriad of tools for our agents the company is poised for significant growth throughout New England.

Look for more signs going up in your neighborhood! Then watch as they come down after a successful closing!

Waterfront in Newport County

William Raveis — Sun, 24 May 2009 06:24:15 -0500

New Listing!

Click here: http://arthurchapman.raveis.com/propdetail.asp?KEY=2801651&AGENT=5074&PG=agentproplist.asp&AGT=5074&SITE=agt&OFC=24902

Relax on your waterfront dock, kayak or boat on the saltwater pond or glide out to the bay from your backyard. Private and serene setting on lush landscaped acreage in a desirable peninsula location close to Ocean Beaches, Newport, Providence and one hour from Boston. This home is designed to bring waterviews into every room in the house. High ceilings, spacious rooms and natural stone fireplaces. First level entertainment and media room with fireplace accessing sloping waterfront backyard. Second level is surrounded by walk out deck and sliders in every room for spectacular sunrise views. Stainless eat in kitchen, beautiful hardwoods and open floor plan. Get ready to move in and enjoy summer your waterfront dock is waiting.

Open House May 17th 11 to 1

William Raveis — Tue, 12 May 2009 15:48:59 -0500

http://arthurchapman.raveis.com/propdetail.asp?AGT=5074&SITE=agt&STATE=RI&FROM=propfind&PG=1&TOTAL=3&sortdir=ASC&KEY=2759699&FSTKEY=2785259&LASTKEY=2413850&LASTPG=1

QUALITY CONSTRUCTION BY OLDPORT HOMES.

THIS LOVELY HOME WITH WRAPAROUND PORCH BOASTS FOUR BEDROOMS, TWO FULL AND ONE HALF BATHS, 2 CAR GARAGE AND LARGE DECK FOR ENTERTAINING. EXPANSIVE MASTER SUITE WITH BATH. LARGE OPEN FAMILY ROOM WITH FIREPLACE, 2ND FAMILY ROOM IN BASEMENT! GORGEOUS LANDSCAPING!

LOVELY AREA WITH EASY COMMUTE TO PROVIDENCE, NEWPORT AND ALL THE AREA BEACHES. A GREAT HOME IN A GREAT AREA.

First Time Homebuyer - Frequently Asked Questions

William Raveis — Tue, 12 May 2009 06:40:31 -0500

FIRST-TIME HOMEBUYER TAX CREDIT FAQ's

Frequently Asked Questions
In 2008, Congress enacted a $7500 tax credit designed to be an incentive for first-time homebuyers to purchase a home. The credit was designed as a mechanism to decrease the over-supply of homes for sale.

For 2009, Congress has increased the credit to $8000 and made several additional improvements. This revised $8000 tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009.

Tax Credits - The Basics

1. What's this new homebuyer tax incentive for 2009?

The 2008 $7500, repayable credit is increased to $8000 and the repayment feature is eliminated for 2009 purchasers. Any home that is purchased for $80,000 or more qualifies for the full $8000 amount. If the house costs less than $80,000, the credit will be 10% of the cost. Thus, if an individual purchased a home for $75,000, the credit would be $7500. It is available for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.

2. Who is eligible?

Only first-time homebuyers are eligible. A person is considered a first-time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.

3. How does a tax credit work?

Every dollar of a tax credit reduces income taxes by a dollar. Credits are claimed on an individual's income tax return. Thus, a qualified purchaser would figure out all the income items and exemptions and make all the calculations required to figure out his/her total tax due. Then, once the total tax owed has been computed, tax credits are applied to reduce the total tax bill. So, if before taking any credits on a tax return a person has total tax liability of $9500, an $8000 credit would wipe out all but $1500 of the tax due. ($9,500 - $8000 = $1500)

4. So what happens if the purchaser is eligible for an $8000 credit but their entire income tax liability for the year is only $6000?

This tax credit is what's called "refundable" credit. Thus, if the eligible purchaser's total tax liability was $6000, the IRS would send the purchaser a check for $2000. The refundable amount is the difference between $8000 credit amount and the amount of tax liability. ($8000 - $6000 = $2000) Most taxpayers determine their tax liability by referring to tables that the IRS prepares each year.

5. How does withholding affect my tax credit and my refund?

A few examples are provided at the end of this document. There are several steps in this calculation, but most income tax software programs are equipped to make that determination.

6. Is there an income restriction?

Yes. The income restriction is based on the tax filing status the purchaser claims when filing his/her income tax return. Individuals filing Form 1040 as Single (or Head of Household) are eligible for the credit if their income is no more than $75,000. Married couples who file a Joint return may have income of no more than $150,000.

7. How is my "income" determined?

For most individuals, income is defined and calculated in the same manner as their Adjusted Gross Income (AGI) on their 1040 income tax return. AGI includes items like wages, salaries, interest and dividends, pension and retirement earnings, rental income and a host of other elements. AGI is the final number that appears on the bottom line of the front page of an IRS Form 1040.

8. What if I worked abroad for part of the year?

Some individuals have earned income and/or receive housing allowances while working outside the US. Their income will be adjusted to reflect those items to measure Modified Adjusted Gross Income (MAGI). Their eligibility for the credit will be based on their MAGI.

9. Do individuals with incomes higher than the $75,000 or $150,000 limits lose all the benefit of the credit?

Not always. The credit phases-out between $75,000 - $95,000 for singles and $150,000 - $170,000 for married filing joint. The closer a buyer comes to the maximum phase-out amount, the smaller the credit will be. The law provides a formula to gradually withdraw the credit. Thus, the credit will disappear after an individual's income reaches $95,000 (single return) or $170,000 (joint return).

For example, if a married couple had income of $165,000, their credit would be reduced by 75% as shown:

Couple's income $165,000

Income limit 150,000

Excess income $15,000

The excess income amount ($15,000 in this example) is used to form a fraction. The numerator of the fraction is the excess income amount ($15,000). The denominator is $20,000 (specified by the statute).

In this example, the disallowed portion of the credit is 75% of $8000, or $6000

($15,000/$20,000 = 75% x $8000 = $6000)

Stated another way, only 25% of the credit amount would be allowed.

In this example, the allowable credit would be $2000 (25% x $8000 = $2000)

10. What's the definition of "principal residence?"

Generally, a principal residence is the home where an individual spends most of his/her time (generally defined as more than 50%). It is also defined as "owner-occupied" housing. The term includes single-family detached housing, condos or co-ops, townhouses or any similar type of new or existing dwelling. Even some houseboats or manufactured homes count as principal residences.

11. Are there restrictions on the location of the property?

Yes. The home must be located in the United States. Property located outside the US is not eligible for the credit.

12. Are there restrictions related to the financing for the mortgage on the property?

In 2009, most financing arrangements are acceptable and will not affect eligibility for the credit. Congress eliminated the financing restriction that applied in 2008. (In 2008, purchasers were ineligible for the $7500 credit if the financing was obtained by means of mortgage revenue bonds.) Now, mortgage-revenue bond financing will not disqualify an otherwise-eligible purchaser. (Mortgage revenue bonds are tax-exempt bonds issued by a state housing agency. Proceeds from the bonds must be used for below market loans to qualified buyers.)

13. Do I have to repay the 2009 tax credit?

NO. There is no repayment for 2009 tax credits.

14. Do 2008 purchasers still have to repay their tax credit?

YES. The $7500 credit in 2008 was more like an interest-free loan. All eligible purchasers who claimed the 2008 credit will still be required to repay it over 15 years, starting with their 2010 tax return.

Some Practical Questions

15. How do I apply for the credit?

There is no pre-purchase authorization, application or similar approval process. All eligible purchasers simply claim the credit on their IRS Form 1040 tax return. The credit will be reflected on a new Form 5405 that will be attached to the 1040. Form 5405 can be found at www.irs.gov.

16. So I can't use the credit amount as part of my downpayment?

No. Congress tried hard to devise a mechanism that would make the funds available for closing costs, but found that pre-funding would require cumbersome processes that would, in effect, bring the IRS into the purchase and settlement phase of the transaction.

17. So there's no way to get any cash flow benefits before I file my tax return?

Yes, there is. Any first-time homebuyers who believe they are eligible for all or part of the credit can modify their income tax withholding (through their employers) or adjust their quarterly estimated tax payments. Individuals subject to income tax withholding would get an IRS Form W-4 from their employer, follow the instructions on the schedules provided and give the completed Form W-4 back to the employer. In many cases their withholding would decrease and their take-home pay would increase. Those who make estimated tax payments would make similar adjustments.

Some "Real World" Examples

18. What if I purchase later this year but can't get to settlement before December 1?

The credit is available for purchases before December 1, 2009. A home is considered as "purchased" when all events have occurred that transfer the title from the seller to the new purchaser. Thus, closings must occur before December 1, 2009 for purchases to be eligible for the credit.

19. I haven't even filed my 2008 tax return yet. If I buy in 2009, do I have to wait until next year to get the benefit of the credit?

You'll have a helpful choice that might speed up the process. Eligible homebuyers who make their purchase between January 1, 2009 and December 1, 2009 can treat the purchase as if it had occurred on December 31, 2008. Thus, they can claim the credit on their 2008 tax return that is due on April 15, 2009. They actually have three filing options.

· If they purchase between January 1, 2009 and April 15, 2009, they can claim the $8000 credit on the 2008 return due on April 15.

· They can extend their 2008 income-tax filing until as late as October 15, 2009. (The IRS grants automatic extensions, but the taxpayer must file for the extension. See www.irs.gov for instructions on how to obtain an extension.)

· If they have filed their 2008 return before they purchase the home, they may file an amended 2008 tax return on Form 1040X. (Form 1040X is available at www.irs.gov)

Of course, 2009 purchasers will always have the option of claiming the credit for the 2009 purchase on their 2009 return. Their 2009 tax return is due on April 15, 2010.

20. I purchased my home in early 2009 before the stimulus bill was enacted. I claimed a $7500 tax credit on my 2008 return as prior law had permitted. Am I restricted to just a $7500 credit?

No, you would qualify for the $8000 credit. Eligible purchasers who have already claimed the $7500 credit on a 2008 return for a 2009 purchase may file an amended return (IRS Form 1040X) for the 2008 tax year. This amended return will enable them to obtain the additional $500 credit amount.

21. If I claim my 2009 $8000 credit on my 2008 tax return, will I have to repay the credit just as the 2008 credits are repaid?

No. Congress anticipated this confusion and has made specific provision so that there would be no repayment of 2009 credits that are claimed on 2008 returns.

22. I made an eligible purchase of a principal residence in May 2008 and claimed the $7500 credit on my 2008 tax return. My brother, who has never owned a home, wishes to purchase a partial interest in the home this spring and move in. Will he qualify for the $8000 credit, as well?

No. Any purchase of a principal residence (or interest in a principal residence) from a related party such as a sibling, parent, grandparent, aunt or uncle is ineligible for the tax credit. Since you and your brother are related in this way, he cannot qualify for the credit on any portion of the home that he purchases from you, even if he is a first-time homebuyer.

23. I live in the District of Columbia. If I qualify as a first-time homebuyer, can I use both the $5000 DC credit and the $8000 credit?

No; double dipping is not allowed. You would be eligible for only the $8000 credit. This will be an advantage because of the higher credit amount, plus the eligibility requirements for the $8000 credit are somewhat more easily satisfied than the DC credit.

24. I know there is no repayment requirement for the $8000 credit. Will I ever have to repay any of the credit back to the government?

One situation does require a recapture payment back to the government. If you claim the credit but then sell the property within 3 years of the date of purchase, you are required to pay back the full amount of any credit, including any refund you received from it. A few exceptions apply. (See below, #24). Note that this same 3-year recapture rule applies, as well, to the $7500 credit available for 2008. This provision is designed as an anti-flipping rule.

25. What if I die or get divorced or my property is ruined in a natural disaster within the 3 years?

The repayment rules are eased for many circumstances. If the homeowner who used the credit dies within the first three years of ownership, there is no recapture. Special rules make adjustments for people who sell homes as part of a divorce settlement, as well. Similarly, adjustments are made in the case of a home that is part of an involuntary conversion (property is destroyed in a natural disaster or subject to condemnation by eminent domain by an authorized agency) within the first three years.

26. I have a home under construction. Am I eligible for the credit?

Yes, so long as you actually occupy the home before December 1, 2009.

WITHHOLDING EXAMPLES:

Note: The impact of estimated tax payments would be the same.

Situation 1: Sally plans her withholding so that her withholding is as close as possible to what she anticipates as her income tax liability for the year. When she fills out her 1040, her liability is $6000. She has had $6000 withheld from her paycheck. She also qualifies for the $8000 homebuyer credit.

Result: Sally's withholding satisfies her tax liability and reduces it to zero. She will receive a refund of the full $8000.

Situation 2: Nick and Nora file a joint return. Nick is self-employed and makes estimated payments; Nora has taxes withheld from her salary. When they compute their taxes, their combined withholding and estimated tax payments are $11,000. Their income tax liability is $9800. They also qualified as first-time homebuyers and are eligible for the $8000 refundable tax credit.

Result: Ordinarily, their combined estimated tax payments and withholding would make them eligible for a refund of $1200 ($11,000 - $9800 = $1200). Because they are eligible for the refundable tax credit as well, they will receive a refund of $9200 ($1200 income tax refund + $8000 refundable tax credit = $9200)

Situation 3: Cesar and LuzMaria both have income taxes withheld from their salaries and file a joint return. When they file their income tax return, their combined withholding is $5000. However, their total tax liability is $7200, generating an additional income tax liability of $2200 ($7200 - $5000). They also qualify for the $8000 first-time homebuyer tax credit.

Result: Cesar and LuzMaria have been under-withheld by $2200. Ordinarily, they would be required to pay the additional $2200 they owe (plus any applicable interest and penalties). Because they are eligible for the refundable homebuyer tax credit, the credit will cover the $2200 additional liability. In addition, they will receive an income tax refund of $5800 ($8000 - $2200 = $5800). If they owed penalties and/or interest, that amount would reduce the refund.

Strong Spring Market!

William Raveis — Tue, 05 May 2009 14:19:18 -0500

Ok, let's not get too excited, but....

Its only been a few days in this month BUT the Pending Index is matching the New Listing Index. 4.75 listings per day and 4.75 contracts per day in Newport County, RI. Does this mean that supply is matching demand? NO.

What it does mean is that the buying activity is strong and I would expect that our median and average sales prices will start to stabilize over the next few months.

We are coming out of a very bad market. Renewed interest and considerable job creation in the area will pull us out of the doldrums by early summer.

If you are a Buyer, hire a good Buyers Broker who knows the area well and has a strong reputation and great negotiating skills. If you are a Seller, hire an agent/agency with strong regional presence and great website.

Keep Hope Alive!

Renovated condo in Newport, RI

William Raveis — Tue, 05 May 2009 06:11:48 -0500

http://www.arthurchapman.raveis.com/propdetail.asp?KEY=2694837&AGENT=5074&PG=agentproplist.asp&AGT=5074&SITE=agt&OFC=24902

Comfortable elegance in this two bedroom and two bath condo in a superior location in Newport, RI. Large deck for entertaining, cozy fireplace in expansive living room, granite counters and cherry cabinetry in the completely updated kitchen. Large master bedroom with bath with sliders to the deck! Off street parking AND a GARAGE SPACE - in Newport!! This must be seen!

Buyers are back - in full force

William Raveis — Sun, 03 May 2009 16:46:48 -0500

It really feels like 1998. At least the current trends of the real estate market feel that way. Buyers are coming out of the woodwork, looking at property...looking and looking and looking...

Then when they find a property they like, they bid at least 20% under current list price to get the conversation started. Many sellers have already taken a perceived hit on the value of their properties. So most of the time conversations never get off the ground.

BUT..in the past 3 weeks we have seen more multiple bid situations where several people are after the same property. One seller threatened to take the property off the market and re-list for a much higher price this summer!

With 4.5 contracts per day in Newport County, we will see our sales numbers rise AND average sales price will rise as well as there has been a good amount of high end activity.

Keep Hope Alive!

Waterfront in Newport RI

William Raveis — Thu, 30 Apr 2009 05:35:05 -0500

New construction on the harbor in Newport, RI. This luxury waterfront home has been constructed with the highest of workmanship and materials. The quality and detail surround you as you enjoy the peaceful views of Narragansett Bay. Three or four bedrooms with four full and two half baths on four levels. There are 3 decks to enjoy the beautiful views and sunsets. Five full fireplaces, outdoor shower, two car garage, five zones of heat and central air...its all here..on the harbor in Newport.

http://arthurchapman.raveis.com/propdetail.asp?KEY=2666579&AGENT=5074&PG=agentproplist.asp&AGT=5074&SITE=agt&OFC=24902

Newport RI Getaway Pad!

William Raveis — Wed, 29 Apr 2009 05:25:18 -0500

NEWPORT'S FAMOUS CLIFF WALK IS JUST STEPS AWAY AND BELLEVUE AVENUE IS JUST UP THE ROAD FROM THIS FABULOUSLY LOCATED PROPERTY IN AN ESTATE CONDOMINIUM COMPLEX. CHARMING 2 BEDROOM 2 BATH CONDO. MASTER BEDROOM SUITE! CLOSE TO EVERYTHING NEWPORT HAS TO OFFER!

http://arthurchapman.raveis.com/propdetail.asp?KEY=2716830&AGENT=5074&PG=agentproplist.asp&AGT=5074&SITE=agt&OFC=24902

Charming Home!

William Raveis — Wed, 29 Apr 2009 05:20:54 -0500

QUALITY CONSTRUCTION BY OLDPORT HOMES, THIS LOVELY HOME WITH WRAPAROUND FRONT PORCH BOASTS FOUR BEDROOMS, TWO FULL AND ONE HALF BATHS, TWO CAR GARAGE AND LARGE DECK FOR ENTERTAINING. LARGE OPEN FAMILY ROOM WITH FIREPLACE PLUS SECOND FAMILY ROOM IN BASEMENT! GORGEOUS PROFESSIONALLY DESIGNED LANDSCAPING!

MORE DETAILS HERE:

http://arthurchapman.raveis.com/propdetail.asp?KEY=2759699&AGENT=5074&PG=agentproplist.asp&AGT=5074&SITE=agt&OFC=24902

Buyers are BACK!

William Raveis — Sat, 18 Apr 2009 08:09:02 -0500

The market has come alive along with all the daffodils! Our Pending Index has risen from a extremely low .8 contracts per day in December to a robust 3.5 contracts per day in April! March settled at 3.85 contracts per day!

With a healthy increase in job creation in our are due to the US Naval Base and related services, we very well could be at the low point in our market. There are too many jobs coming in and we are a "mature" market. On an island, you cant create more land..so supply is finite. With demand increasing we should see values stablizing late this year.

It's been very busy with multiple bid offers becoming quite common! Buyers are BACK!