Your House Your Home

REALTOR ® Magazine-Daily News-HUD: Tax Credit Can Be Used on Closing Costs

Get the REAL story on the tax credit: REALTOR® Magazine-Daily News-HUD: Tax Credit Can Be Used on Closing Costs Shared via AddThis

UPDATE FOR FIRST-TIME BUYERS! Tax credit ineligible for down payment

A few weeks ago, a LOT of excitement was generated around the announcement that first-time buyers could now use their $8,000 tax credit as part of their downpayment. Unfortunately, that is NOT the case - the decision was reversed. However, the GOOD news is that it is a fabulous time to buy your first home. Mortgage rates are low, low, low. The tax credit is still in effect until December 1, 2009. Not sure where/how to begin? Feel free to email me - I'd be happy to help. To read about the reversal, see below: Tax credit ineligible for down payment Shared via AddThis

April Showers Bring May Buyers!

I am happy to report that Spring has brought a very busy real estate market!  I am grateful for the business.  I am grateful for President Obama's $8,000 tax credit for first-time buyers.  I am grateful for the lower-than-ever mortgage rates for those who qualify.  And I am grateful for my wonderful, energetic, enthusiastic first-time buyers who are stepping up, getting out, and BUYING homes!  We're buying in Woburn, Wakefield, Arlington, Stoneham, Melrose, and Winchester. It's such a wonderful time to buy a home!

I have such smart buyers!

Here in the suburbs north of Boston, first-time homebuyers are coming out of the woodwork and buying homes. It's so exciting to be a part of the economic recovery, witnessing first-time buyers getting into the game and taking advantage of this incredible moment in history. The TAX CREDIT of $8,000 doesn't hurt either. Did you know you can get your money early? To find out more about the tax credit, read my other posts. Give me a call if I can help you buy your home.

Spring Is Here!

Tulips are popping up in my New England yard and that means that Spring is here!  I can also tell that the season has begun because my phone is ringing off the hook with First Time Homebuyers!  I am thrilled to see that everyone's getting on board with the Tax Credit, with the low mortgage rates, and with the wonderful opportunities out there.   I am hosting a Homebuyer's Toolkit workshop on Thursday, March 26th, 7-9 p.m. in Arlington, MA.  It's filling up fast.  I can't wait to meet everyone and hear what's on their minds.  It's an exciting time in real estate!

Buy Now! Why? Read on!

FIRST-TIME HOMEBUYER TAX CREDIT  Calling all first-timers!  Here is a Q&A written and published by the Massachusetts Association of REALTORS regarding YOUR First-Time Homebuyer's Tax Credit.  Contact me with any questions: Frequently Asked Questions  In 2008, Congress enacted a $7500 tax credit designed to be an incentive for first-time homebuyers to purchase a home. The credit was designed as a mechanism to decrease the over-supply of homes for sale. For 2009, Congress has increased the credit to $8000 and made several additional improvements. This revised $8000 tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009. Tax Credits -- The Basics  1. What’s this new homebuyer tax incentive for 2009?    The 2008 $7500, repayable credit is increased to $8000 and the repayment feature is eliminated for 2009 purchasers. Any home that is purchased for $80,000 or more qualifies for the full $8000 amount. If the house costs less than $80,000, the credit will be 10% of the cost. Thus, if an individual purchased a home for $75,000, the credit would be $7500. It is available for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.  2. Who is eligible?    Only first-time homebuyers are eligible. A person is considered a first-time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.  3. How does a tax credit work?    Every dollar of a tax credit reduces income taxes by a dollar. Credits are claimed on an individual’s income tax return. Thus, a qualified purchaser would figure out all the income items and exemptions and make all the calculations required to figure out his/her total tax due. Then, once the total tax owed has been computed, tax credits are applied to reduce the total tax bill. So, if before taking any credits on a tax return a person has total tax liability of $9500, an $8000 credit would wipe out all but $1500 of the tax due. ($9,500 - $8000 = $1500)  4. So what happens if the purchaser is eligible for an $8000 credit but their entire income tax liability for the year is only $6000?    This tax credit is what’s called “refundable” credit. Thus, if the eligible purchaser’s total tax liability was $6000, the IRS would send the purchaser a check for $2000. The refundable amount is the difference

Tax Credit Chart 2009

first-time-buyer-tax-credit-chart

Calling All Homebuyers: Read About YOUR Tax Credit!

Okay, would-be homebuyers, check out the hot-off-the-press information on The Tax Credit.  As I've been saying for a while now, it's a GREAT time to buy your first home.  If you need more information, read on for posts on credit, working with a Buyer's Agent, and how the whole home-buying process works.  

Yes, Virginia, you CAN be a homeowner.

Click on this link for the Homebuyer Tax Credit:

file:///Users/katherinewatersclark/Desktop/TAX%20CREDIT%202009.pdf

If you don ' t believe me...

Just ask my colleague, Elizabeth Bolton, a Realtor in Cambridge, MA who writes this post on her Active Rain blog.  I couldn't say it better myself, Elizabeth!   Whaddya Mean There Are Other Offers? I Thought This Was A Buyers' Market! Given the unrelenting doom and gloom in the media, it's no wonder you feel like you've got the upper hand when you're looking for a new home.  Visions of lowball offers, grateful sellers, and bargain basement prices dance in your head.   But real estate is local and even today you may find yourself in a competive market where houses sell quickly and still get multiple offers.   There have been a number of multiple offers in my market recently and it can take newcomers by surprise.  Some houses, clearly well priced, get half a dozen or more offers the first weekend on the market. So here's a game plan to take you through the crazy, stress-producing process of buying a home when you've got competition.   What's a savvy buyer to do when there are multiple offers?   For starters, don't be discouraged and don't be afraid.  It is possible to "win" and get the house of your dreams and it doesn't necessarily mean you have to break the bank to do so. I've bought three of the four properties I've owned in multiple bid situations - including my first house. And I've been happy with every house - no regrets!   Get A Buyers' Agent   You need to be working with a buyer's agent who will represent your interests in the transaction.  Sometimes buyers think that going directly to the seller's agent will give them a leg up.  But the seller's agent's responsibility is to the seller, not to you as a buyer.  And it's quite likely that the seller will still owe the same commission to the listing office even though only one agent is involved in the transaction.  And most important - in a multiple bid situation the listing agent's responsibility is to get the best offer for the seller - regardless of whether you've submitted an offer directly to him or her. The sellers' goal is to get more money in their pockets - not the agent's.   You need somebody on your side.  A buyers' agent will be able to:  

• Pull comparable sales info to enable you to decide on a reasonable but competitive offer price
• Advise you about real estate activity in the neighborhood for similar houses
• Strategize about how to put together a compelling offer that has a strong chance of prevailing in a bidding war  

How Does the Seller Decide Which Offer To Accept?   When the seller looks at several offers there are only so many points to compare.  You want to shine on all points:   Price - Go over the comparable sales information with your agent. Don't get stuck on the asking price - the house may be purposely priced low to generate excitement - and that strategy worked! Carefully go over the stats and decide on a price that makes sense and seems competitive.  Your agent will have experience in the market and be able to offer advice but ultimately you're deciding on an offer price that is comfortable for you and reflects just how much you want the house.  Don't assume that multiple bids means the offers will go sky high - sometimes all the offers can be under the asking price. Other times it does seem the sky is the limit - we've had at least two houses in Cambridge sell for $1,000,000 over the asking price.  The comparable sales info and the amount of activity for the listing should give you some sense of how the offers might go.   Dates - Your agent will find out what dates work best for the seller - do your best to meet them.  Maybe you'll have to move in with your parents for a few weeks or move more quickly than you had hoped but remember - you'll be moving into the house you love.  The temporary inconvenience will be quickly forgotten.   Contingencies - The typical offer contingencies are financing, inspection, and in the case of condominiums, satisfactory review of the condominium documents.  You should have a letter of preapproval from your lender at the ready.  Be aware that some buyers may very well drop any and all of their contingencies.  You have to decide if you are comfortable eliminating any contingencies.  Perhaps you have cash on hand from a previous sale or your parents will back you up and you're open to the idea of dropping a financing contingency.  Or you had the chance to go through the property with an inspector prior to submitting your offer.  Everyone's situation will be different and everyone's risk tolerance varies as well. Decide what if any contingencies you're comfortable eliminating. And if you are including contingencies discuss with your agent how to minimize the impact - by tightening dates, increasing the dollar value of repairs you're willing to take on, etc.   Deposits - Expectations for deposit amounts vary in different states and regions.  Talk to your agent about the norms in your area and consider increasing the deposit.  Thist doesn't cost you anything since the deposit will go towards your down payment. From the sellers' perspective, however, it shows evidence of the seriousness of your offer.     Respect The Emotions Involved In Selling A Home    Don't forget that selling a home is often an emotional transaction.  Honor that.  The sellers want to feel good about passing on their home to its new caretakers.    Now is not the time for pointed questions or asking for repairs - though that time may come if you've allowed for an inspection.  Remember - you're being compared with other buyers. Don't stand out as a pain in the neck - it's not to your advantage if you want the house.  Keep extraneous issues out of the offer.  You're buying a house - not the furniture.  Focus on the goal and talk about extras later.   And one no-cost but often very effective tool is a letter to the sellers.  Write about who you are, why you love the house, and how you'll take good care of it. Mention any special things that stood out to you.  If you can tell the sellers took good care of the house say so.  If you like their decorating mention that.  Sellers will often remember and remark about the letter weeks after receiving it.    Ultimately the seller wants the best price and the fewest hassles.  And if they can feel good about the new caretakers of their family home all the better.      What Happens Next?   There aren't any rules for how the seller chooses an offer.  You may get an opportunity to better your offer and resubmit at an agreed upon time.  Or the seller may choose one of the offers on the spot.  It's typically to your advantage to submit as strong an offer as possible in the first round.  But it also might not a bad idea to have a small buffer so that you can increase your offer by a few thousand if given the chance.  But remember - you might not get that chance. Plan accordingly and put your best foot forward.   Go For It!   Some buyers are tempted to walk away from a multiple offer situation without even making a bid. But if you've found the house you really want - give it your best shot. A multiple bid situation is not insurmountable. And you can't assume that you'll have to write a sky high offer to get your offer accepted.    When I sold my first house, purchased in a bidding war during a down market, one of the first people at the open house was one of the other bidders from five years before.  I never regretted buying that house and for him it was the one that got away.  So - work with your agent, craft your bid, and know that you've done your best.  And maybe, just maybe - you'll be the happy new owners.  Good luck!  

 

Home Alert For Buyers and Sellers!

Greetings, would-be Homebuyers. I have some wonderful news for you.  There are MANY affordable homes out there waiting for YOU.  Seriously - WHY rent when YOU can own your own place?  But you've got to to get OUT THERE and start looking.  Read on for more tips on HOW to get started.   For the would-be Homesellers - listen to me:  do NOT let this economy SCARE you! Remember, remember:  real estate is LOCAL.  Here in the suburbs North of Boston, values have not dropped very much.  And, as always, people are still moving, having babies, getting divorced, going to Heaven, and moving in to --- and out of --- town.   Read on for more information on buying and selling homes.  Please let me know how I can help you.