The Month After

If you have been looking for a home anytime within the last 2 years, you realize that the market prices are probably the lowest in recent years.  What happens after the tax credit and first time buyer incentives are gone?

 

First of all let’s consider the final days of April, is there still time to have a contract in place before the 30^th?  There is time, the key is to have your lender and financing in place, a letter of qualification is needed for all contracts submitted to the short sale or bank owned handlers.  Next, realize that most home prices are probably at bottom line.  Don’t waist time trying to under bid or low ball at this point.  Doing so will add to days to the approval if it is accepted at all.  Then move fast and watch your timelines.  Have a realtor that you can depend to work full time.

 

Now we know there are still lots of homes to come on the market in the future as short sales and bank repossessions.  The fed has indicated that interest rates will likely hold for at least a while.  It will take some time for the inventories of homes on market to come down.  Prices will probably bottom out and begin a slow climb out.

 

Bottom line, take action now, don’t sit on the fence, have professionals working for you that know how the process works and home ownership will still be the American Dream.  

 

 

 

18 Days left

Only eighteen days left to place a home under contract to get the tax advantage!
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Tax Credit Update

New Legislation
New legislation, the Worker, Homeownership and Business Assistance Act of 2009, which was signed into law on Nov. 6, 2009, extends and expands the first-time homebuyer credit allowed by previous Acts. The new law:

•Extends deadlines for purchasing and closing on a home.
•Authorizes the credit for long-time homeowners buying a replacement principal residence.
•Raises the income limitations for homeowners claiming the credit.

Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.

For the first time, long-time homeowners who buy a replacement principal residence may also claim a homebuyer credit of up to $6,500 (up to $3,250 for a married individual filing separately). They must have lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased.

People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after Nov. 6, 2009. The credit phases out for individual taxpayers with modified adjusted gross income (MAGI) between $125,000 and $145,000 or between $225,000 and $245,000 for joint filers. The existing MAGI phase-outs of $75,000 to $95,000 or $150,000 to $170,000 for joint filers still apply to purchases on or before Nov. 6, 2009.

Several new restrictions apply to homes purchased after Nov. 6, 2009.

•Purchasers must attach a properly executed settlement statement to their return.
•No credit is available if the purchase price of the home exceeds $800,000.
•The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement.
•A dependent is not eligible for the credit.
•The new law gives the IRS broader authority to deny first-time homebuyer credit claims, without having to first audit a taxpayer’s return. Known as math error authority, this authority applies, retroactively, to credits claimed on original and amended 2008 returns, as well as to claims yet to be filed.
Additionally, there are new benefits for members of the military and certain other federal employees:

•Members of the uniformed services, members of the Foreign Service and employees of the intelligence community serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit.
•In many cases, the credit repayment (recapture) requirement is waived for members of the uniformed services, members of the Foreign Service and employees of the intelligence community

NAR's new Web site for homeowners launches today!

You care about your home. The NATIONAL ASSOCIATION OF REALTORS® cares about homeownership. To help you become the best, most responsible homeowner you aspire to be, we want to provide you with free information and tools you can use to make smart and timely decisions about your home.