Real Estate Information Archive

The $8000 first-time home buyer tax credit was scheduled to expire in just a few short weeks…Nov 30, 2009. I say ‘was’, because the Senate voted unanimously to extend the credit on Monday and the House of Representatives approved the extension yesterday afternoon by a vote of 403-12. The extension includes an expanded tax credit to repeat home buyers. The new and improved bill now goes to the President for his signature which is expected to happen today.

Home Buyer Tax Credit Expansion and Extension  

• The $8,000 tax credit will be extended and available for first-time home buyers through May 1, 2010.  

• A new $6,500 tax credit will be available for repeat buyers who purchase between December 1, 2009, and May 1, 2010. To qualify, buyers must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years. 

• Prospective buyers with binding contracts in place as of April 30, 2010, will be allowed an additional 60 days to complete the transaction.  

• Income limits are expanded to $125,000 on a single return and $225,000 on a joint return. 

• Limitation on the cost of a purchased home is $800,000. 

If you know anyone looking to buy their first Miami home at a time when prices and interest rates are at 3-5 year lows, or if you are thinking of buying another Miami home and getting the new $6,500 credit please contact me today.

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FROM  MY INBOX: Reading through the mass of emails I get I am always drawn to the blog posts from Deborah Boza-Valledor from the Realtor Association of Greater Miami and the Beaches.  She continually posts timely blogs, and this one is no exception.  It is about now being a great time to buy, and I could not agree more.  Last week I was on the phone with my younger brother, Jon, who lives in Southern California and for the first time housing there is affordable. 

He is looking to be a first time home buyer and with the $8,000 first time home buyer tax credit, large inventory and historically low interest rates, if now is not the time, then what is?  If you are thinking about buying and want to know how what is available please visit: www.getsouthfloridalistings.com for free emails of homes as they come on the market including foreclosures, HUD homes and short sales.

Ellen Bithell, CRS, CREO, SSS (short sale specialist)

SELLING SOUTH
  
Survey: Households say Now Is A Good Time To Buy

March 28, 2009 by Deborah Boza-Valledor

    *ORLANDO, Fla. – March 27, 2009 – Out of 1,000 potential first-time home buyers, 78 percent say that now is a good time to buy a home, despite widespread concern about the economy. And 68 percent think now is a better time to buy than six months ago. The survey was conducted in early March for the Century 21 First-Time Home Buyer Survey.

Prices are the driving motivation for potential first-time home buyers, with more than eight of 10 first-time home buyers (85 percent) saying they consider current home prices affordable, and 73 percent citing current prices as a major factor in their decision to buy now. However, potential first-time buyers are still split between “being willing to consider an offer now” (42 percent) and “waiting for prices to go down before they seriously consider making a purchase” (48 percent).

“Current pricing, rates and incentives, such as the First Time Homebuyer Tax Credit, provide tremendous opportunities for first-time home buyers to get into the market,” says Tom Kunz, Century 21 Real Estate president and CEO. “Our research shows that while consumers still have concerns about the future of the economy, many are actively considering their options as we move into the spring selling season.”

Among the survey’s other key findings:

• Bargains in the marketplace provide additional options for buyers to consider. Fifty-six percent of potential first-time home buyers are considering a foreclosed or short sale home, and 63 percent are open to a “fixer-upper” or “as-is” home.

• When asked to rate the features that they look for when choosing a home, price is the primary consideration, with 87 percent saying this feature is “very important,” followed closely by neighborhood safety (80 percent) and the home’s condition (71 percent).

• Having enough money for a downpayment is a top concern of potential first-time home buyers, as nearly half (46 percent) said they are “very worried” about the issue.

• Most respondents (86 percent) are in the market for single family homes.

Source: Century 21

© Copyright 2009 INFORMATION, INC. Bethesda, MD

FROM MY INBOX:  Like all of us I get tons of emails these days and try to quickly sort out the garbage from the gold.  Since President Obama signed the $8,000 tax credit into law a couple of weeks ago I have been getting a lot of questions about it and this blog from Debra Boza-Valledor of RAMB explains it really well.  Please read on and don’t hesitate to give me a call or send me an email with any comments, questions or concerns.  I look forward to hearing from you!  If you would like to receive emails of new properties as they hit the market including foreclosures, short sales and HUD homes please visit: www.getsouthfloridalistings.com


Ellen Bithell, CRS, CREO, SSS (short sale specialist)


SELLING SOUTH FLORIDA


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How to Get the $8,000 First-Time Homebuyer's Tax Credit


March 9, 2009 by Deborah Boza-Valledor


How does a first-time homebuyer take advantage of the $8,000 tax credit that President Obama is expected to sign into law tomorrow? It comes with a few rules. According to the most recent analysis, the following rules will apply – though things could change as tax professionals weigh the details:


• The deduction is worth 10 percent of a home’s value up to $8,000, which means all homes worth more than $80,000 could qualify for the maximum amount.


• There is an income limit to qualify. A married couples’ modified adjusted gross income (MAGI) should be under $150,000 and single filers’ MAGI should be less than $75,000.


• Partial tax credits may be available for married couples with MAGI incomes over $150,000 but under $170,000, and single filers with incomes over $75,000 but under $95,000.


• If married couples file separately, they can both claim 5 percent of the home purchase ($4,000 each for a home over $80,000) on their tax returns.


• It’s a tax credit, not a deduction. That means the entire amount goes back to the first-time homebuyer unlike deductions, such as mortgage interest, that are subtracted from gross income before tax is calculated. If qualified for $8,000, the buyer gets $8,000, even if they would not owe that much in taxes otherwise.


• The tax credit applies to homes purchased between Jan. 1, 2009, and Dec. 1, 2009.


• The tax credit does not have to be paid back, providing the homebuyer keeps the property for at least 36 months and resides in the home.


• To qualify as a first-time homebuyer, the purchaser cannot have owned a home within the previous three-year period. However, ownership of a vacation home or rental home does not disqualify the buyer.


• If purchasing a new home, the effective date to receive the credit is the first day the homeowner actually lives in the house. If construction began in 2008, that buyer could still qualify. And if construction begins in 2009 but the owner does not take possession until 2010, the buyer would not qualify.


• The tax credit can be claimed on 2008 income tax forms even though the purchase took place in 2009. A buyer could close on a home the same day that President Obama signs it into law, fill out their income tax forms the next day, and receive the tax credit fairly quickly.


The tax credit is not a down payment, but it could be used toward a down payment if first-time homebuyers plan ahead. U.S. taxpayers have money withheld from every paycheck for income taxes. If they owe more tax than the amount deducted, they pay the IRS; if they owe less, they get a tax refund.


By anticipating at least an $8,000 refund in early 2010 when they file 2009 taxes, these buyers could cut down on their tax withholding this year and save the money toward a down payment. There is one caveat, however: Should they not buy a home in the qualifying period, they would still owe the IRS the money, and reducing their withholding amount could result in a high bill at tax time.


Tax Credit details


Every homebuyer has unique circumstances and specific questions. The National Association of Home Builders (NAHB) has launched a consumer Web site with detailed information and an extensive list of frequently asked questions. To find out more about the $8,000 tax credit, go here (http://www.federalhousingtaxcredit.com)


© 2009 FLORIDA ASSOCIATION OF REALTORS®