WEICHERT, REALTORS® - ComVest Residential

Current Tax Credit

2010-02-22T14:31:00.002-05:00

OK, time is beginning to run out!!

At this time there are about TWO months left to take advantage of either the FIRST TIME Home Buyer’s Tax Credit or the credit for those who are selling and buying, BUT NOT for the first time.

The FIRST TIME Buyer is eligible for an $8,000 credit and the “move up” or “downsizer” is eligible for up to a $6500 credit. There are, of course, some specific criteria that must apply. For example, the cost of the home that is being purchased cannot cost more than $800,000. Also, there is an income limit of $125,000 per year for a single return and $225,000 for a joint return.

BOTH types MUST be under agreement by 4/30/2010 and close by June 30, 2010. There is still time to avail yourself of this wonderful opportunity, but there are only about TWO months remaining. Not only is this a great financial opportunity, but the interest rates are still at fabulous levels.

So, if you have been thinking about a REAL ESTATE change this is the time to do it, for many reasons!

If I can answer any additional questions, please feel free to contact me: Jeri Baily at 508-259-9848, WEICHERT, REALTORS® - ComVest Residential.

2009-11-19T13:47:00.007-05:00

NAR (National Association of REALTORS®)

Frequently asked questions
about the Homebuyer Tax Credit Changes:

Question: Exisiting homeowner credit: Must the new house cost more than the old house?

Answer: No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.

Question: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlment on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?

Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.

Question: I am a first-time homebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law buy the time I go to settlement, will I be eligible for a credit?

Anwer: Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portions of the credit if you're within the phase-out range).

Question: I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home with a non-negotiable price of $825,000. Will I be able to use any of the $6500 tax credit?

Answer: No. The $800,000 cap on the cost of the purchases home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.

Question: I owned my home for 10 years, but sold it two years ago year and have been been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?

Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, say John and his wife brought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit becaused he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is "consecutive". As long as he lived in that house for 5 years straight what he did since 3 years doesn't impact elibibility.

Question: I am an eligible first-time homebuyer. I entereed into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me?

Answer: You do not have to close before December 1. Once the legislation has been signed, it will be as if the Nov. 30 date has never existed. Therefore, so long as the contract settles before April 30 (or July 1, worse case) the purchaser will be eligible for the credit.

Staging or Preparing Your Home for Marketing

2009-09-30T14:38:00.005-04:00

The term “staging” has been used considerably in recent years in reference to properly preparing a home for sale. The term has come to mean proper preparation for the professional marketing of a home. It can include a broad range of changes to a home, from minor decorative touches to painting the home inside and out, new landscaping and updating kitchens and baths. Home staging is preparing the home to appeal to a broad range of potential buyers.

Particularly in our current real estate market, it is essential to do SOME of these items, whether we call it staging or updating, a great deal of the decision regarding what should be done, depends on the neighborhood that the property is in, the competition for that type or size home, as well as the seller’s financial situation.

From the primer of home preparation comes the recommendation to de-clutter everywhere. To make this task a bit less daunting, tackle one room or closet at a time. There are many destinations for your unneeded items, such as Goodwill Industries, Salvation Army or FreeCycle.com etc. Part of this very important “de-cluttering” is removing excess furniture that makes an area look smaller and less inviting.

Another very important part of general preparation is to clean, clean and clean some more. The windows need to be freshly washed to let maximum light in. If window treatments look tired, fresh new ones, allowing all possible sunlight, will help. If the room(s) lack sufficient natural light, add plenty of table or floor lamps.

After all else is done, put fresh flowers in strategic locations. The arrangements don’t need to be expensive. One bouquet can be divided among several rooms, depending on the room sizes. Please generally stay away from fake flowers of most types.

This process of home preparing or staging does not need to be expensive or necessarily done by a professional stager. Sometimes a trusted friend, with a kind, but critical eye can be very helpful. The goal is to create spaces that give a feeling of calm, that are uncluttered and fresh.

Jeri Baily, GRI, CBR

2009-09-03T10:07:00.008-04:00

The $8000 tax credit for First Time Home Buyers will expire in less than 90 days. This means that as a First Time Home Buyer you need to accelerate your home search and get your home buying process into the Offer to Purchase stage by the end of September. The deadline for the program is November 30, 2009. This being said, you must have your transaction completed by the close of day on November 30th to qualify for the tax credit. Since there are many steps in the process that need to be completed once the offer is made, you should allow yourself 60 days to complete the necessary transactions.

In order to meet the November 30th deadline, you must factor in enough time for any hiccups in the process so you do not jeopardize qualifying for the tax credit. In July, Governor Patrick announced an added benefit to this program by offering a new opportunity to access affordable home ownerships by using the tax credit in advance of the federal tax credit. To learn more about this program and to get a complete list of participating lenders go to:

http://www.masshousing.com/

2009-08-04T12:13:00.007-04:00

Welcome to the blog of WEICHERT, REALTORS® – ComVest Residential. As the residential real estate market has experienced changes, we’ve asked ourselves how can we help our clients, customers and many visitors in a meaningful way.

The purpose of our blog is to answer the most frequently asked questions that we hear every day in our conversations with buyers and sellers. Our goal is to separate myth from reality in today’s market and keep current with the latest information.

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