The extension of the 2009 First Time buyers tax credit not only gives procrastinators a little more time to take advantage of the up to $8K tax credit, the extension also offers some exciting new benefits.
Military Benefits:
Members of the Armed Services, intelligence, and foreign services, who are on active duty and spend a minimum of 90 days outside of the US in 2009, will get an additional year to buy their homes, up to May 1st, 2011.
For sellers who have lived in their homes, as a primary residence, for a minimum of five consecutive years, there is a brand new $6500 tax credit for the purchase of a new or existing home that is in contract between Nov. 7th 2009 and April 30th, 2010 and closed by July 2010.
The general sense seems to be that this will be it for this tax credit. When the deadline for the first credit was approaching there, were many folks left panicked thinking they had missed an awesome opportunity. Do not be left on the sidelines call me at 614-273-6406 or email me at vanessa.simmons@realliving.com and let us make sure you find your dreams home in time to take advantage of this credit.
Many people go through life one paycheck to the next and never bother to figure out where their money is going. It's important to know where your money is going and what you can afford if you are thinking about buying a new Central Ohio home.
Here's how to start up a monthly budget that will keep you in the know about where your money is running off to each month.
•· Find a program you're comfortable using. Your computer probably came with a spreadsheet program. If you are not used to using one open it up and become familiar with the program. It's a great tool to use to create a budget. If by chance your computer doesn't have a spreadsheet program, you can use an online program like Budget Pulse, or other useful online budget systems such as Mvelopes.
•· Enter your absolute monthly expenses such as car loans, utilities including cell phone bills, and credit card expenses.
•· Enter your monthly bills that can vary such as food, gasoline, entertainment. These expenses can be changed to help improve your bottom line, but make sure you give them fair limits so you don't cut yourself short on necessities such as food or transportation costs.
•· Make sure you figure in some savings for vacations and other unexpected expenses that may pop up throughout the year. Trimming your budget so severely that you have no extra money to cover you when something breaks down, or an extra bill comes in is a sure method for disaster and will make you new life in a Central Ohio home miserable instead of the happy time it should be.
Once you realize where your money is going, it's easier to see if you are spending frivolously or strapped to your limits. It is the best way to determine if your dreams of a new Central Ohio home are realistic or not.
If you have any questions about your ability to afford a new home, I can help. Call me today at (614) 273-6406 or email me at Vanessa.simmons@realliving.com
If you have your eye on a short sale as a first time buyer you may be running out of time to take advantage of the $8000.00 tax credit.
The 2009 First-Time Homebuyers Tax Credit
If you're a first-time homebuyer, you're still in luck but may be running out of time. A while back Congress passed a tax credit for first-time homebuyers, which gives an opportunity to earn up to $8,000 when purchasing a home. Read on to find out how this credit works and whether or not you qualify for it.
What Constitutes a First-Time Homebuyer?
You may be classified as a first-time homebuyer and not even know it. Obviously, if you haven't previously owned a home you fall into the category of first-time homebuyer. But did you know that if you haven't owned a principal residence (a location where you spend more than 50% of your time) in the past 3 years you also constitute what we call a first-time homebuyer? It's important to note that if you're married, both you and your spouse qualify for this tax credit if neither of you have owned a principal residence in the past 3 years. If either of you have, you don't jointly qualify. If you're unmarried, you can jointly purchase a home with somebody if one of you qualifies as a first-time homebuyer. The catch is that you have to allocate the credit amount to the individual who qualifies. This sometimes happens if a parent decides to jointly purchase a home with a son or daughter. Remember, you still qualify for this tax credit even if you have a vacation home or rental property that isn't used as a primary residence.
How Can I Earn a Partial Tax Credit?
If your individual income is between $75,000 and $95,000 or if your joint income is between $150,000 and $170,000, then you are in what we call the phase-out area. This is the income bracket where you will receive a partial tax credit, but not a full one.
Here's an example of how you can determine your partial tax credit. Let's say as a single individual you have a modified adjusted gross income of $79,000. Your income exceeds $75,000 by $4,000. Dividing $4,000 by $20,000 (the difference between $75,000 and $95,000) gives you 0.2. When you subtract 0.2 from 1.0, the result is 0.8. Then multiply $8,000 by 0.8 to get $6,400. $6,400 is your partial tax credit. For additional information, contact your tax advisor, or check out the following phase out charts:
Is There a Repayment Process?
The best part about this credit is that there's no repayment as long as you don't sell the home within three years of purchase. If you choose to do so, the entire amount of credit is due back to the government at the time of sale. But this only applies to homes purchased in 2009, and it's the biggest difference between the 2008 tax credit of $7,500 and this year's credit of $8,000. Last year's credit acted as more of an interest-free loan.
How Do I Claim the Tax Credit?
You can easily claim the tax credit on your federal income tax return. Start by completing the IRS Form 5405 to determine your tax credit amount, then claim this amount on Line 69 of your 1040 income tax return. Be sure that you qualify for the credit before filling in these forms.
Can I Claim the Credit on My 2008 Tax Return?
It can be claimed on your 2008 Tax Return (to be filed by April 15, 2009), an amended 2008 Tax Return, or your 2009 Tax Return. The NAR and industry partners tried to get the credit made available at closing but the IRS balked. In addition, it was explained that even if a system could be devised, it would delay closings by several weeks. Make sure to contact your tax advisor for details on the process.
Can I Receive the 2009 Credit If I've Already Filed for the 2008 Credit on my 2008 Returns?
Yes, you may be able to file an amended 2008 tax return with a 1040X form. Make sure to work with your tax advisor to execute a successful return.
I reproduced this information from the Real Living Site.
For more details call me at 614-273-6406 or email me at vanessa.simmons@realliving.com. Please do not let this opportunity pass by you it could be gone just like the Cash for Clunkers so don't miss out contact Vanessa today.
July 2009 Home Sales Statistics Posted: 8/21/2009 Columbus Board of REALTORS® Home prices, sales, inventory continue positive trends Key indicators point to increased stability in central Ohio market
(Aug. 21, 2009) Home sales and inventory levels remained steady in July, as more than 2,000 homes were sold, and sales were off by only 2.9 percent compared to 2008 levels, the Columbus Board of REALTORS® said today.
"Pricing, inventory, and supply levels all show that we are coming out of the bloated housing market we saw a year ago," said Gary Parsons, president of the Columbus Board of REALTORS®.
"These key factors in real estate are all remaining consistent and balanced - signs that the central Ohio housing market continues to head in the right direction."
At $167,039, July's average sales price was only off 4 percent compared to the same month in 2008.
Total inventory and new listings both fell by double digits, indicating a housing market that is more balanced than last summer.
With 14,880 listings on the market, inventory is down 16 percent from the more than 17,000 homes which were for sale this time last year; new listings were also down 16.2 percent in July compared to 2008.
The month's supply number for July continued to remain favorable at 7.23, meaning that if no new homes were added to the market, it would take slightly more than seven months to sell all remaining inventory.
A market is typically considered balanced with around a 6.5 to 7 month supply.
"It appears the end of summer and early fall are going to remain strong in central Ohio as sellers take advantage of favorable pricing and incentives like the $8,000 first-time homebuyer tax credit," Parsons said.
"With just 101 days left until the tax credit expires, we encourage those fence sitters to act now."
It's almost time for the closing on the Columbus area home you're buying and you can't wait. You go to the property for the final walk-through inspection. You're so busy thinking about where the furniture is going to go and what color you'll paint the walls, you breeze right through the house.
It's after closing and moving day has arrived. Your movers have already packed up your old house and are waiting for you to show up and unlock the door at your new Columbus area home. You enter the house only to find that the repair the sellers were supposed to make were not finished.
You may wonder if you have any recourse with the seller. Most likely not. Unfortunately, your last chance to object to the condition of the house passed at the final walk-through inspection.
You need to be sure to check several things at the final walk-through, including the state of any repairs you negotiated in your contract.
•· Check all the lights. Turn the lights on and off, this will also signal any underlying electrical issues.
•· Check for leaks by running water from all the faucets, and looking underneath all the sinks for any moisture. Check the seal on the toilets by flushing each one at least once.
•· If there are any appliances that are part of the sale, turn them all on and off. Test the oven by turning it on and waiting a few minutes for it to warm up. If the refrigerator has an ice maker, then it should work at the time of closing. The garbage disposal should be in good working order as well.
•· Make sure all the doors work, and open and close smoothly. Open and close all the windows.
•· Turn on the furnace and the air conditioning before you leave your new home. Wait long enough to be sure that each is working properly.
When you hire me as your real estate agent, I'll be by your side guiding you every step of the way, including the final walk-through inspection. Call me today at 614-273-6406, or email me at Vanessa.simmons@realliving.com.
This article is reporduced with the permission of The Columbus Board of Realtors
More than 2,000 homes changed hands in June, the highest number in 10 months, as the market reached its most balanced levels in nearly three years, the Columbus Board of REALTORS® said today.
Month's supply - the figure that best illustrates the relationship between supply and demand in the housing market - is at its lowest point since August 2006.
The month's supply number for June was 7.12, meaning that if no new homes were added to the market, it would take slightly more than seven months to sell all remaining inventory.
"This new low is something to be proud of, because it means central Ohio is not seeing the volatility in supply and pricing that much of the rest of the country is experiencing," said Gary Parsons, president of the Columbus Board of REALTORS®.
"A market is typically considered balanced with around a 6.5 to 7 month's supply, so this is a case where we like to see numbers decreasing," said Parsons.
New listings were also down by 13.2 percent compared to last June.
June marked the highest number of homes sold in a single month since August. There were 2,092 homes sold in June, a 15.6 percent increase over May but down 6.7 percent from June 2008.
"More than 1,600 homes went into contract in June, more than any other month since last August, which is a promising sign for the second half of summer sales and the central Ohio market," said Parsons.
"We are continuing to see more homes sell; more go into contract, and fewer entering the market which is good news for buyers and sellers - things work best with a balanced market."
The average sales price was $169,270 in June, the highest in nearly a year, but still off by 6.2 percent compared to June 2008.
"I expect that with only 130 days left to take advantage of the $8,000 first-time homebuyer tax credit, we're going to be busy heading into late summer and early fall," said Parsons.
Although the housing market has had its fair share of ups and down, many home buyers, particularly first-time home buyers, are reaping the benefits. If you're thinking about purchasing a Central Ohio home, there are many good reasons to make your move today. Here are six of them:
•1. Low interest rates - Right now, interest rates are lower than ever before. This means you can get an extremely affordable loan and save big on interest payments.
•2. Cheaper home prices - Not only are interest rates low, but homes all around are cheaper. Since the market is packed with homes for sale, selling has become harder. As a result, prices have fallen significantly, allowing you to get a more expensive home for less money.
•3. Potential tax credits - As a first-time buyer, you could be eligible for thousands of dollars in tax credits. Best of all, you do not have to pay it back, as opposed to previous years. There is one local Lender that is allowing borrowers to use part of the 8K upfront for down payment assistance. Contact me for more information on this.
•4. Less competition - Many people no longer have the money to purchase homes, so fewer people are visiting model homes and open houses. This is great news for you. If you're ready to buy a Central Ohio home, you don't have to worry about floods of people bidding up the price on the property.
•5. Huge inventory - With new homes constantly being built, not to mention an array of existing homes, you can take your pick from a wide variety of available properties.
•6. Big bargaining power - Because so many people are trying to sell their homes, they're more willing to be flexible. As a buyer, you could greatly benefit and may be able to save on closing costs, upgrades, repairs and more. Work with a skilled real estate agent who can negotiate a great contract for you.
If you have the funds to step out and purchase one of the many Central Ohio homes for sale, now is the best time to take advantage of all the possibilities. I'm ready, willing and able to negotiate the best price and terms for you. Call me today at 614-273-6406 or email me at Vanessa.simmons@realliving.com
It is amazing to see that May 2009 home sales here in Central Ohio have increased almost 13% over April 2009 making this the 4th straight month of home sales price increases. May 2009 sales were only slightly higher than May 2008, however, at $168,576 home prices are at their highest point of the year.
Homes on average sold for $231 more than during May 2008, indicating that competition among consumers, particularly first-time buyers using the $8,000 tax credit, is continuing to drive the markets' recovery.
Central Ohio inventory levels continue to decrease given the fact that New Listing were down 24.6% in May 09 compared to May of 08. Since the basic principle of supply and demand influence home prices this is great news for home sellers.
With only 156 days left to take advantage of the $8000 dollar tax credit anyone looking to buy really needs to jump in now to take advantage of the best prices and inventories.
If you want to take advantage of the Central Ohio Housing Market please give me a call at 614-273-6406 or email me at Vanessa.simmons@realliving.com.
You're found the perfect home. It has the right number of bedrooms, great living spaces, and boasts prime proximity to everything you need. With so many great incentives now is the time to buy, but you have reservations about plunging into such an important financial commitment in the midst of economic uncertainty. If you find yourself in this situation, then Real Living's free Peace of Mind Program may be just what you need.
The Peace of Mind Program gives you the opportunity to take advantage of some of the lowest interest rates today, while ensuring your financial peace of mind tomorrow. Life can be unexpected at times, and Real Living wants to protect you and your home from unforeseen financial curve balls like involuntary unemployment. For a brief overview of the program's terms and conditions, click here. The best part is that the Peace of Mind Program is free! There are no hidden costs and fees associated with it.
Now is the time to take advantage of tax credits and low interest rates and with this program you can confidently move forward to making your home ownership dreams a reality. Call me at 614-273-6406 or email me vanessa.simmons@realliving.com to learn more about this program or to answer any other questions you have about real estate.
Purchasing a short sale can be nerve wrecking and exciting. Many are lured in by the wonderful thought of getting a great deal on a house. However, it is important to remember, before getting too caught up that there are many "Got Chas" that without proper knowledge and guidance can derail your plan to short sale success.
The 4 Key things to remember when purchasing a short sale are:
1. Work with a Pro
Buying a short sale requires knowledge of the process and good negotiation skills. Just as with a regular sale your agent will coordinate all the elements, however, short sales come with a few other steps that an experienced agent can assist you with to help keep that dream from becoming a nightmare. This is not the time to go it alone.
2. Don't Delay
Finding the right Columbus area short sale, sometimes means your favorite property may also be someone else's favorite. That's why, your agent will be a valuable tool in assisting you in doing the research to help you quickly bid on the property.
3. Know what you are Buying
Most bad short sales experiences result from buyers how miss this important step. There are many surprises that may pop up, so it's important that your work with an agent that is experienced in finding out everything they can about the property, including whether or not the home has any liens on it and how with the liens be satisfied. Although this can be a bit of a roadblock, you may be able to negotiate.
4. "AS IS" may or May not Be As Is
Oft times, when buying short sales, the home is sold as is. However again with an experienced agent there may be areas were negotiating some fixes are possible. Ultimately, it will be up to the buyer to decide if they are willing to renovate or update the home as needed, if nothing will be done by the bank or sellers. If so, your agent and lender may be able to suggest some avenues to assist you in getting things repaired, even if it is just cosmetic work.
If you're interested in getting short sale property at a great price, give me a call today at 614-273-6406. I specialize in guiding people through the short sale process, and I'm happy to answer all your questions.
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.
;)
;)
