I want to know what you think about what’s going on in the real estate market today. If you have noticed, it’s not the top story on the news every night. In fact, you would be hard pressed to find any stories relating to the market anymore. Why? Because the market has turned from a buyers market to a level market and that isn’t scary enough to make the headlines. What does this mean? It means that inventory has started to go down and the price of homes isn’t expected to go down much further if at all. Don’t get me wrong, there is still plenty of inventory and it will take some time for us to fully recover but what I want to make clear is that if you were considering selling your home and moving up into a bigger house then the time to do it is now while you can get the best deal out there. Oh and guess what else? Interest rates are still unbelievably low. They were expected to go up after the home buyer tax credit expired but since the euro fell in Greece, the rates went down even further. It is the perfect storm right now and who know’s how long it will last.
Are any of you out there considering buying or selling in the next couple of years? If so, give me a call and we can discuss some of your options. Maybe just refinancing is the right answer for you or maybe there is an opportunity to make an investment that will really pay off. Either way we can determine what works for you personally. Call me at 203-415-0288 TODAY!
President Obama signed H.R. 3548 on Nov 6, enacting into law an extension, and adjustment, of the $8,000 tax credit for first-time buyers. Among other things, the extension adds money for certain move-up buyers; creates one deadline for signing a contract and a later deadline for closing; changes income requirements; and limits a purchased home’s cost to $800,000.
Florida residents enjoy two additional advantages. The Florida Homebuyer Opportunity Program (FHOP), created by the Florida Legislature earlier this year, still has approximately $28 million that first-time homebuyers can access and use toward their down payment. And move-up buyers have the ability to ‘port’ their current property tax savings to a new home.
First-time homebuyers
Most details for first-time homebuyers mirror the rules currently in existence. The maximum tax credit remains $8,000 ($4,000 for married individuals filing separately), and anyone who has not owned a home within three years is considered a “first-time buyer.”
• A purchase must be under contract by April 30, 2010.
• A purchase under contract by April 30 must close no later than June 30, 2010.
• After Dec. 1, 2009, income limits rise to $125,000 for singles and $225,000 for married couples; up from limits effective through Nov. 30 of $75,000 for singles and $150,000 for married couples. The tax credit phases out incrementally at each $20,000 increase in income.
• Effective immediately: The maximum home value purchased cannot exceed $800,000. Prior to the law being signed, first-time homebuyers had no limitation on a home’s cost.
Current homeowner tax credit
An existing homeowner who purchases a home may now claim a tax credit of up to $6,500. To qualify, that owner must have owned and used the same residence as a principal residence for any consecutive five-year period in the previous eight years.
• This new tax credit is effective immediately. Eligible homebuyers do not have to wait until Dec. 1 to close in order to qualify.
• Personal income limits, maximum home value, and contract/closing deadlines are the same as those for first-time homebuyers.
Long-time Florida homeowners who enjoy discounted property taxes resulting from the state’s Save Our Homes amendment qualify for property tax portability
Florida Homebuyer Opportunity Program (FHOP)
Under FHOP, first-time Florida homebuyers can obtain interest-free bridge loans to access their federal tax credit before they complete a home purchase, enabling them to use that money upfront for down payment and closing costs. Once buyers submit their returns to the IRS and receive their tax credit money, they repay their loans to the state.
While funded by the state, the money is distributed through the city and county housing offices that operate the State Housing Initiatives Partnership (SHIP) program. There is no standardized program, and each local agency may operate under different rules for distribution. For more information, buyers should contact their local SHIP office.
The tax credit extension includes other new rules, such as:
• The new law also impacts dependent purchases of homes, which weren’t addressed under the old rules.
• The new law requires a buyer to attach documentation about the home purchase to his or her income tax return. An audit found that some buyers are claiming the tax credit when they don’t deserve it, and investigators continue to seek out fraud. To minimize tax abuse going forward, buyers won’t receive the credit without submitting proof to the Internal Revenue Service (IRS).
The homebuyer tax credit is collected as part of the normal income tax process. As a credit, it’s calculated separately from an individual’s income tax, and paid regardless of taxes owed or withheld from income. As always, however, only a tax planner can render specific advice to anyone seeking the credit. For more information on the credit, contact a tax planner or visit the IRS website at: http://www.irs.gov.
In this episode I am joined by Tim Kellerman and we discuss the first time home buyer tax credit. Not only was it extended but there were additional provisions made to include those who have owned a home for at least 5 of the last 8 years. This is great news! Learn why you should take advantage of these credits!
In this episode I am joined by my Keller Williams Broker, Ann Braunagel, where we discuss how we each got started in Real Estate. Some of the myths surrounding Realtors, and what is the “DNA” of a successful Realtor.
Im so excited! I just finished reading Crush It ! by Gary Vaynerchuk . It’s a very insightful book about the importance of social media and how to us it as your platform to talk about ANYTHING to your hearts content.
My name is Kristen McClurken and I am a realtor with Keller Williams Realty in Trumbull, CT. I decided that i would give the video blog thing a chance and talk to other realtors about our successes and challenges in this shifting market. My hope is that we can give people a little bit of insight into what’s really going on. All you see on the news is a bunch of Debbie Downers giving you worst case scenarios specific to the the markets in the most trouble, like california and Florida for example. Guess what? Connecticut took a hit but comparatively speaking….we’re not doing to shabby. That’s good news! Why is that not on the 5:00 news? I’ll tell you why….it doesn’t scare people.
Im working on editing my first video blog ( I make funny faces and fidget a lot) so stay tuned for my big debut.
