Congress and President Obama passed both an extension of the $8,000 First Time Homebuyer Tax Credit and added a $6,500 Homebuyer Credit for sellers who have lived in their home for 5 consecutive years in the past 8 years.
The offer must be completed and finally signed by April 30th, 2010. The closing must be before June 1, 2010.
Some common questions:
Must a homeowner sell their current home to receive the tax credit?
NO
Can they rent their previous home and purchase another home and get the credit?
YES - as long as the replacement/new home is going to be their primary home.
Can it be used to buy investment property/second home/cabin? NO - it must be a replacement primary residence.
If a homeowner bought less than four years ago, but owned prior to that, would they qualify?
NO - They must have lived in the same (key word being "same") principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased.
Are there income limits?
YES. $125,000 for a single person and $225,000 for a married person.
Are there any other requirements for the tax credit?
YES. If you are buying you must not have owned a home for 3 years. if you are selling it must be your primary residence for at least 5 of the last 8 years.
Is there a max amount I can buy a home for?
YES. $825,000
Is there a lowest amount I can buy a home for?
Yes, the $8,000 is on a sliding scale equal to 10% of the sales price UP TO $8,000.oo For example, if the home you purchase is only $70,000 then you will only receive $7,000 worth tax credit.
Does the tax credit have to be repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.
If I have any questions, who should I ask?
YOUR TAX PREPARER/ACCOUNTANT. The tax credit is exactly that, a tax credit. You must discuss everything with you accountant prior to purchasing/selling a home to ensure you are completely eligible.
Thursday, November 12, 2009
Monday, September 28, 2009
Get In On The $8,000 Tax Credit!
Who Qualifies for the $8,000 tax credit?
First-time home buyers! They must purchase homes between January 1, 2009 and December 1, 2009. THE CLOSING of the home must be before November 30th, 2009!
*Please Note: To qualify as a “first-time home buyer” the purchaser their spouse may not have owned a residence no less than three years prior to the purchase.
Which Properties Are Eligible?
Primary residences including: single-family homes, condos, townhomes.
How Much Will the Credit Be?
The maximum allowable credit is $8,000. The tax credit is determined by two factors:
#1.) The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.
#2.) The buyer's income—single buyers with income $75,000/year. Married couples with income up to $150,000/year.
If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit. (Please consult a certified tax accountant for more information on this tax credit and the above eligabilities!)
Will the Tax Credit Need to Be Repaid?
No- not really... The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale! Meaning, it will be taken out of your homes proceeds. It is probably best to not plan on selling your home for at least 3 years.
Sources: realtor.com, and IRS.gov
TAX CREDIT INFORMATION:
http://www.irs.gov/newsroom/article/0,,id=204671,00.html
First-time home buyers! They must purchase homes between January 1, 2009 and December 1, 2009. THE CLOSING of the home must be before November 30th, 2009!
*Please Note: To qualify as a “first-time home buyer” the purchaser their spouse may not have owned a residence no less than three years prior to the purchase.
Which Properties Are Eligible?
Primary residences including: single-family homes, condos, townhomes.
How Much Will the Credit Be?
The maximum allowable credit is $8,000. The tax credit is determined by two factors:
#1.) The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.
#2.) The buyer's income—single buyers with income $75,000/year. Married couples with income up to $150,000/year.
If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit. (Please consult a certified tax accountant for more information on this tax credit and the above eligabilities!)
Will the Tax Credit Need to Be Repaid?
No- not really... The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale! Meaning, it will be taken out of your homes proceeds. It is probably best to not plan on selling your home for at least 3 years.
Sources: realtor.com, and IRS.gov
TAX CREDIT INFORMATION:
http://www.irs.gov/newsroom/article/0,,id=204671,00.html
Wednesday, August 5, 2009
How important are those pictures?
Studies show anywhere from 74% to as high as 80% of home buyers have ALREADY looked at your home on the internet. The buyers use the internet to search for homes, and often determine from the interior photos on the websites which properties they choose to drive by to determine if they like the home from the outside.
An agent that keeps up on all the internet availabilities is very important! Does you agent provide virtual tours? Are they taking video tours of your home? Do they crop out undesirables like the garbage can and sidewalks? Does your agent get multiple photos at every angle?
For exterior shots be sure that the family dog is not the star! Put away bicycles, broken lawn decorations, and childrens toys. Take sunny, unshaded photos. Add in pots of colorful flowers such as red geraniums. Be sure the lawn is mowed and the weeds are trimmed. Remove vehicles from photos as well!
For interior shots, Open all the shades and blinds, use the flash every time, remove stacks of magazines, clear unruly bookshelves, wash handles on the light colored cabinets, and add floral arrangements for extra color. (Reduce, reduce, reduce all items in every photo! Don't be insulted if your agent moves items from the room just for a photo and then puts them back! He/She knows what they are doing!)
Don't run the risk of being passed over online, find an agent who knows how to shed your home in the very best light!
An agent that keeps up on all the internet availabilities is very important! Does you agent provide virtual tours? Are they taking video tours of your home? Do they crop out undesirables like the garbage can and sidewalks? Does your agent get multiple photos at every angle?
For exterior shots be sure that the family dog is not the star! Put away bicycles, broken lawn decorations, and childrens toys. Take sunny, unshaded photos. Add in pots of colorful flowers such as red geraniums. Be sure the lawn is mowed and the weeds are trimmed. Remove vehicles from photos as well!
For interior shots, Open all the shades and blinds, use the flash every time, remove stacks of magazines, clear unruly bookshelves, wash handles on the light colored cabinets, and add floral arrangements for extra color. (Reduce, reduce, reduce all items in every photo! Don't be insulted if your agent moves items from the room just for a photo and then puts them back! He/She knows what they are doing!)
Don't run the risk of being passed over online, find an agent who knows how to shed your home in the very best light!
Friday, May 22, 2009
6 mistakes to avoid while selling your home in a crowded market...
1. Do not believe your home is "the exception".
In market where the average sales price has dipped, even just ever-so-slightly, believing your home is the exception to the rule and asking for top dollar is a mistake. Price the property at or below comparable homes in the area.
2. Not scouting out your competition.
Sellers should get a first-hand look at the nearby homes that are also up for sale. "Check out their open houses. Look at the houses in your homes same price range so you know, right away, what your "competition" really is. If those homes are "better" adjust your price to reflect the differences or make changes to your home to make yours better. Be sure you aren't fooling yourself. Be honest with yourself. No matter how much it might sting, look at the competitions homes as well as your own with as much honesty as possible.
3. Not Preparing your property for the market.
Buyers have many hoems to chose from these days. Ensure Your home is in tip-top condition for showings. That means making any and all home repairs, ensuring that the indoor and outdoor portions of the property are immaculate, and removing clutter.
4. Being present during open houses.
It's important for the sellers to be away from the home during open houses, as their presence can be unnerving to would-be buyers. If you have items you feel need "protecting" like collectibles or jewelry, those should be all cleaned out of the home and put away prior to ANY showings or listing of the home (including guns, personal papers, medications, etc...)
5. Taking negotiations personally.
The negotiation process can be tough on sellers because it is a fine line between getting the buyers to feel like they "got a good deal" and the sellers feel like they "aren't giving their house away." Many buyers need concessions such help with closing costs. Although such requests might be irksome, it's important that sellers consider it normal and part of a business transaction. It is not meant to be personal. Buyers are purchasing as carefully as they can and trying to pay as little as they can.
6. Sneering at offers: Even if you aren't crazy about a buyer's offer, don't dismiss it right away. You need to be willing to negotiate with anyone and everyone who puts in an offer, even if it is one of those "low-ball" offers. You may be surprised what we can get to "go through" even with a difficult beginning.
In market where the average sales price has dipped, even just ever-so-slightly, believing your home is the exception to the rule and asking for top dollar is a mistake. Price the property at or below comparable homes in the area.
2. Not scouting out your competition.
Sellers should get a first-hand look at the nearby homes that are also up for sale. "Check out their open houses. Look at the houses in your homes same price range so you know, right away, what your "competition" really is. If those homes are "better" adjust your price to reflect the differences or make changes to your home to make yours better. Be sure you aren't fooling yourself. Be honest with yourself. No matter how much it might sting, look at the competitions homes as well as your own with as much honesty as possible.
3. Not Preparing your property for the market.
Buyers have many hoems to chose from these days. Ensure Your home is in tip-top condition for showings. That means making any and all home repairs, ensuring that the indoor and outdoor portions of the property are immaculate, and removing clutter.
4. Being present during open houses.
It's important for the sellers to be away from the home during open houses, as their presence can be unnerving to would-be buyers. If you have items you feel need "protecting" like collectibles or jewelry, those should be all cleaned out of the home and put away prior to ANY showings or listing of the home (including guns, personal papers, medications, etc...)
5. Taking negotiations personally.
The negotiation process can be tough on sellers because it is a fine line between getting the buyers to feel like they "got a good deal" and the sellers feel like they "aren't giving their house away." Many buyers need concessions such help with closing costs. Although such requests might be irksome, it's important that sellers consider it normal and part of a business transaction. It is not meant to be personal. Buyers are purchasing as carefully as they can and trying to pay as little as they can.
6. Sneering at offers: Even if you aren't crazy about a buyer's offer, don't dismiss it right away. You need to be willing to negotiate with anyone and everyone who puts in an offer, even if it is one of those "low-ball" offers. You may be surprised what we can get to "go through" even with a difficult beginning.
Tuesday, March 10, 2009
Tips to Sell Your Home in a Crowded Market
Todays market for home selling is a little different than in the past, and with the changes has come more choices for the buyers to choose from. The real question is, aside from the obvious such as cleaning and a little staging, what can you do to make your home stand out from the others in your neighborhood?
Here are a few tips to help you out!
Sell the whole Neighborhood...
We at Century 21 Kandi Realty understand the importance of selling the whole neighborhood, not just the home. We pay extra on sites like Realtor.com for "enhancements" that allow people to see your neighborhood, including aerial mapping views and locations of parks and schools and such. Be sure YOUR agent has these options for the internet sites.
Showing readiness and flexibility....
ALWAYS keep your home "showing ready" and be open to last minute showings and flexible scheduling as best you can. Inflexible home owners will be competing with the "last minute" showings- and they may not come back to yours!
We will say it again- Stage your home!
Get a book from the library such as "The complete idiots guide to staging your home to sell." By Julie Dana. Some of her "top tips" are...
- Make sure address numbers are clear and easy to see from the curb. Otherwise, buyers might drive to your neighbor's house by mistake.
- Add lighting to make the house look great at night. "People often do an evening 'drive-by' before they decide to ask for a showing," Dana says.
-Clean and de-clutter. Mail, bathroom toiletries and kids' toys need to be out of view.
-Depersonalize. The knickknacks that make a house a home can distract buyers from visualizing a property as their own, so remove personal items such as family photographs, trophies and vacation pictures.
-Stylize the home with up-to-date designs. Doing something simple, such as placing a slipcover over an old sofa, can greatly improve a room's appearance.
- Take your real estate agents advice! They do not suggest things to insult or inconvenience you. They want you to net more money as much as you do!
Staging is essential. Even in a tough market, buyers will make final decisions based on emotions and not price.
Use creativity...
Have and agent that knows how to use virtual tours online. Have your agent change to new pictures if your listing is more than a couple months old, and rearrange the furniture for the new photos. Redo the remarks re: your home after some time has passed. Keep it looking fresh!
Here are a few tips to help you out!
Sell the whole Neighborhood...
We at Century 21 Kandi Realty understand the importance of selling the whole neighborhood, not just the home. We pay extra on sites like Realtor.com for "enhancements" that allow people to see your neighborhood, including aerial mapping views and locations of parks and schools and such. Be sure YOUR agent has these options for the internet sites.
Showing readiness and flexibility....
ALWAYS keep your home "showing ready" and be open to last minute showings and flexible scheduling as best you can. Inflexible home owners will be competing with the "last minute" showings- and they may not come back to yours!
We will say it again- Stage your home!
Get a book from the library such as "The complete idiots guide to staging your home to sell." By Julie Dana. Some of her "top tips" are...
- Make sure address numbers are clear and easy to see from the curb. Otherwise, buyers might drive to your neighbor's house by mistake.
- Add lighting to make the house look great at night. "People often do an evening 'drive-by' before they decide to ask for a showing," Dana says.
-Clean and de-clutter. Mail, bathroom toiletries and kids' toys need to be out of view.
-Depersonalize. The knickknacks that make a house a home can distract buyers from visualizing a property as their own, so remove personal items such as family photographs, trophies and vacation pictures.
-Stylize the home with up-to-date designs. Doing something simple, such as placing a slipcover over an old sofa, can greatly improve a room's appearance.
- Take your real estate agents advice! They do not suggest things to insult or inconvenience you. They want you to net more money as much as you do!
Staging is essential. Even in a tough market, buyers will make final decisions based on emotions and not price.
Use creativity...
Have and agent that knows how to use virtual tours online. Have your agent change to new pictures if your listing is more than a couple months old, and rearrange the furniture for the new photos. Redo the remarks re: your home after some time has passed. Keep it looking fresh!
Monday, January 12, 2009
Seven things you have to do to sell your home...
1.) Trim and clean up the yard!
Consider the yard as an extension of the house and clean it up! Trim unruly bushes, pull weeds, freshen the mulch and landscaping rock, and keep the lawn mowed. Consider putting in some outdoor lighting to create drama. And if you have a dog, clean up after them every day.
2.) Give your home a freshening up.
Have a friend come over and give your house the "sniff test." Nothing is more off-putting than a smelly house. Empty the garbage, get the dirty dishes out of the sink, run a lemon rind through the garbage disposal, clean the litter box, wash the dogs bedding, have your friend tell you what smells bad in your home.
3.) Paint it earth tones.
Make your house a place that anyone could visualize themselves living in it. This means removing most evidence of your personal taste. Decorate with a rigorous devotion to beige. Neutralize wall colors and furniture. Soften the lighting. Put away your collections.
4.) Remove the dog.
Crating them for showings is not such a good idea. Remove them from the property when you’re not there. A barking dog is extremely distracting when prospects are trying to get a detailed look at your house. Even though he might be contained, his voice will carry. Take him with you if you can, or drop him off at a pet-friendly neighbor’s house and repay her with house-sitting or a similar favor.
5.) "As Is" is for abandoned properties, and do not work on things as you sell.
Do not think "Let the buyers fix the hole in the wall". You may lose a sale over the poor condition of the house. Whenever possible, no matter what the circumstance, your home must be in good working order before you put it on the market. This could take a couple of months, but you need to fix all broken fixtures, change all burned-out light bulbs, repair any flaws in the walls and refresh any paint that needs it.
6.) Personal touch? No- big defect!
Put away your pictures, magazines, books and knickknacks. Buyers will have a have a hard time seeing beyond the pictures of your family. Clear every surface, every side table, every coffee table, the sideboard, the desk and the dining room table. You can put one item in each room, and it should be a plant or a flower arrangement.
7.) Remove extra furniture that clutters the space.
Side tables, footstools and magazine racks- these all have to go! Put a sofa facing the fireplace, and flank it with two chairs and coffee table in between. This will create visual depth and an inviting feeling.
Consider the yard as an extension of the house and clean it up! Trim unruly bushes, pull weeds, freshen the mulch and landscaping rock, and keep the lawn mowed. Consider putting in some outdoor lighting to create drama. And if you have a dog, clean up after them every day.
2.) Give your home a freshening up.
Have a friend come over and give your house the "sniff test." Nothing is more off-putting than a smelly house. Empty the garbage, get the dirty dishes out of the sink, run a lemon rind through the garbage disposal, clean the litter box, wash the dogs bedding, have your friend tell you what smells bad in your home.
3.) Paint it earth tones.
Make your house a place that anyone could visualize themselves living in it. This means removing most evidence of your personal taste. Decorate with a rigorous devotion to beige. Neutralize wall colors and furniture. Soften the lighting. Put away your collections.
4.) Remove the dog.
Crating them for showings is not such a good idea. Remove them from the property when you’re not there. A barking dog is extremely distracting when prospects are trying to get a detailed look at your house. Even though he might be contained, his voice will carry. Take him with you if you can, or drop him off at a pet-friendly neighbor’s house and repay her with house-sitting or a similar favor.
5.) "As Is" is for abandoned properties, and do not work on things as you sell.
Do not think "Let the buyers fix the hole in the wall". You may lose a sale over the poor condition of the house. Whenever possible, no matter what the circumstance, your home must be in good working order before you put it on the market. This could take a couple of months, but you need to fix all broken fixtures, change all burned-out light bulbs, repair any flaws in the walls and refresh any paint that needs it.
6.) Personal touch? No- big defect!
Put away your pictures, magazines, books and knickknacks. Buyers will have a have a hard time seeing beyond the pictures of your family. Clear every surface, every side table, every coffee table, the sideboard, the desk and the dining room table. You can put one item in each room, and it should be a plant or a flower arrangement.
7.) Remove extra furniture that clutters the space.
Side tables, footstools and magazine racks- these all have to go! Put a sofa facing the fireplace, and flank it with two chairs and coffee table in between. This will create visual depth and an inviting feeling.
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