The Contract

On the first step toward Closing, your HomeBuyingForLess agent will work with you on an ‘Offer to Purchase’ contract.  Along with the agreed-on price, this document specifies the closing date, a description of the property, any contingencies that you as a buyer might prefer, and other details. Your HBFL agent will review this document carefully with you.  It reflects the entire agreement between both parties, and once signed by buyer and seller, is legally binding. Typically earnest money is provided by you to demonstrate to the seller a sign of ‘good faith’.  As a HBFL client, you also sign a rebate letter after the final agreed upon purchase price. This rebate letter allows you the buyer, working through your lender, to receive a portion of our commission at Closing. This can mean thousands of extra dollars for you when your home purchase is complete!

Make Official Loan Application

A next step in the process is the official loan application. Even if you were pre-qualified  before starting your home search, now is the time to make it official. After securing the best available interest rate and type of mortgage for your needs, the loan application provided by your preferred lender should be completed and all requested documentation provided. This can take some time, so it’s best to start early. Once approved, you will receive a commitment letter from the lender that will specify any conditions of the loan offer that must be met before Closing.

Schedule Inspections

Next, property inspections should be scheduled to ascertain the overall condition of the property and determine what repairs, if any, should be requested. Homeowners are under no legal obligation to make repairs, but these repairs can be negotiated between buyer and seller if the condition of the property is less than ideal.  Sellers are obligated to disclose material facts about the property, including known defects that may not be apparent during inspection unless the Sellers choose to “Make No Representation”.  Termite inspections are usually required by the lender and should be scheduled 30 days or less before the Closing date. Buyers may also chose to schedule radon inspections and, like all inspections, are typically paid for by the buyer.

Choose a Closing Attorney

A next step is to choose a Closing Attorney, someone who will handle the legal aspects of the process and perform a title search on the property.  A title check confirms that the seller is the legal owner of record and that there are no unsettled liens or other claims against the property. HBFL will be happy to make recommendations if you need help in choosing a reputable firm.

The Appraisal

One of the most common conditions of the loan offer is that the property appraise at or above the contract price.  An appraisal will be ordered by the lender;  the buyer, however, has to pay for the appraisal as part of the final closing costs.

Homeowner’s Insurance

A mortgage lender will also need proof of homeowner’s insurance for final approval of your loan. Homeowner’s insurance protects both the buyer and mortgage lender from loss in the event the house is damaged or destroyed, and rates vary by company.  Be sure to shop around for the best deal.

Final Walk-Through

Once any repair issues have been negotiated and completed, the property appraises, and your loan is approved, you are almost there!  Plan a final walk-through inspection 24 hours before Closing to avoid any surprises. The property should be in the condition specified in the sales contract. If not - for example, a pipe bursts - you can ask to delay the Closing until the situation is resolved and agreed upon between the buying and selling parties.

The Closing Appointment

This is the day you have been waiting for. Your attorney will let you know the amount of money  (in the form of a certified or cashier’s check) you will need to bring to the Closing appointment.  Once the final paperwork is signed, this is where you realize the HomeBuyingForLess rebate. When applied to the final closing cost of your new home, you will have just come out ahead by potentially thousands of dollars! Now, enjoy the keys to your new home!!

Along with advising you on reputable inspectors, attorneys, and other professionals, HomeBuyingForLess will provide timely utilities & HOA information for your new property to help your move go smoothly. Call HomeBuyingForLess to get started at 1-888-201-8565.

·         window, doors, and skylights

·         insulation

·         roofs (metal and asphalt)

·         water heaters (non-solar)

·         heating  and air conditioning systems

·         biomass stoves (such as wood stoves)

Even greater savings are available through 2016 for improvements using solar, geothermal, fuel cell, and wind energy, with no upper limit on the tax credit claimed on both existing and new construction.

There are some exceptions and revisions you should be aware of, including the following:

Amount of Credit

For more traditional improvements, the total allowable tax credit for the 2 year period (2009-2010) is $1500.  You may claim credit on up to 30% of the cost of multiple improvements, but only to a maximum refund of $1500.

Materials

It’s  important to realize that not all Energy Star certified products will qualify.  Unlike requirements in effect prior to June 1, 2009, some new criteria calls for greater efficiency, especially in windows, doors, and skylights. These items, for example, purchased on or after June 1, 2009 must have U-factor and Solar Heat Gain Coefficient (SHGC) ratings of 0.30 or less. Specific ratings are available from the IRS for each of the products that qualify for the credit.

Installation

Some qualified energy improvements separate the cost of the materials from installation and labor.

·         Installation costs are NOT covered by the tax credit for windows, doors, insulation and roofs. If you are not installing the product yourself, ask your contractor for an itemized bill that separates out the cost of the product (including their markup, if any) from the cost of the installation/labor. The 30% tax credit can be applied only to the amount that you paid for materials, up to a maximum of $1500.

·         Installation costs ARE covered for heating, ventilation, and air conditioning systems, water heaters, biomass stoves, solar panels, geothermal heat pumps, fuel cells, and wind energy systems.

Homes that Qualify

The tax credit for energy efficiency is available for improvements made to a home located in the United States that you own and use as your principal residence. It can include a house, houseboat, mobile home, cooperative apartment, condominium, or a manufactured home. Rentals do not quality.  Second homes qualify only for adding geothermal heat pumps, small wind turbines (residential), and solar energy systems.

If you are looking for a home, now is an excellent time to take advantage of federal tax credits for both buying a home and improving its energy efficiency. For help in the process and a chance to save thousands more with our Buyer’s Rebate, call or contact HomeBuyingForLess at 1-888-201-8565.

What has changed:

The most important change is that repeat homeowners can now claim a  tax credit of up to $6500 on qualifying home purchases.  Income limits have also been raised for both first time and existing buyers, and purchase dates have been extended through April 30, 2010.

 Under the new provisions:

·         The purchase price of the new home must be $800,000 or less.

·         The income limit for single buyers is now $125,000, up from $75,000; the income limit for married couples filing jointly is now $225,000, up from $150,000. There is an additional $20,000 phase out.

·         In general, homes must be purchased by April 30th, 2010.  According to the National Association of Realtors, as long as a written binding contract to purchase is in effect  on April 30, 2010, the purchaser will have until July 1, 2010 to close.

·         In the case of existing homeowner purchases, a current homeowner must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years.

·         The purchaser must attach documentation of their purchase to their tax record to satisfy the Anti-fraud rule. To claim the credit, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on line 67 of the 1040 income tax form for 2009 returns.

What remains the same:

·         First-time home buyers can receive a tax credit of up to $8000.

·         To qualify, first-time buyers must not have had an interest in a principal residence for 3 years prior to purchase.

A comprehensive list of other qualifying details for first-time home buyers from the original legislation is available on prior HomeBuyingForLess posts.

If you are ready to take advantage of the extended and expanded Home Buyers Tax Credit legislation, our team of real estate experts at HomeBuyingForLess can make the process easy. You will also get a money-saving credit from us in the form of our Buyer’s Rebate!

Call us today at 1-888-201-8565.

 

 

 

 

 

 

REPAINT

·        Start with the front entrance: if your front door is painted and doesn’t look great, give it a new coat. This first impression counts a great deal and sets the tone for the entire home.  

·         If walls or doors have non-removable stains or scuffs, consider repainting them.  Buyers will be adding up all these “to-do” jobs as they view your home!  You can choose a neutral color; however, sometimes adding a splash of color can really add some pizzazz – just don’t be too bold.

·         Remember the mailbox and post!

REARRANGE

·         Take a walk around and ensure that your furniture provides good traffic flow and conversation areas. If you need to create areas for conversation, try grouping furniture in front of a fireplace or other focal point. Watch for ‘bottlenecks’ that slow traffic as you move through your house -if  you need to squeeze by a large piece of furniture to get to another room, re-locate or remove it. Remember, less is more. 

·         Stage the major rooms in your house for their intended purpose. If you use your dining room as an office, for example, now is the time to clear out the computer and set the table. 

·         Consider creating ‘fantasy spaces’ in unused areas of your house.  Position a comfortable chair and reading lamp by a window, for example, even if you only use the space for storage.  The idea is to make potential buyers “see” themselves living a pleasant life in their new home.  Remember, when you’re trying to sell, it’s not about you and your personal preferences anymore - it’s what appeals to the most potential buyers.

These are basic steps to make any home more appealing to buyers. If you are ready to sell your home, the professionals at HomeBuyingForLess are ready to walk you through the process. Call us at 1-888-201-8565.

Once you have decided it is time to sell your home, the most important and least expensive thing you can do to prepare your house for market is to de-clutter and clean up. When we work with our sellers on staging a home, we first try to consider the obvious and least expensive route.  An uncluttered home that looks and smells clean is a perfect first start! Thus the first “R” in home staging is REMOVE.

Removing Clutter

LESS IS MORE! Rooms with too much clutter look smaller and un-inviting. Sell, donate, or pack things up now. This is one of the most important improvements you can make. Here’s how:

·         Remove up to half of the books from over-stuffed bookshelves. Also remove extras in the kitchen cabinets, pantry and all  closets. Do the same with extra furniture…it makes any room look too small and distracts the buyers. Toys…time to donate, sell, or toss the “unpopular toys”. Leave only a few containers at a time; store the rest. Rotating them every few weeks will make them seem like “new” toys! In general—if you find that you’re planning on keeping more than you can display, store them in the attic/basement, rent a storage unit or ask family/friends to store them until you sell.

·         Remove personal photos so that they do not decorate most wall spaces.  Sure it is okay to have some family photos, but not on walls in virtually every room. Remove un-necessary knick-knacks…display only a few. NO magnets, photos, etc., on refrigerators! We all love displaying them, but it clutters the kitchen too much! On the counter tops—leave only the essentials that fit comfortably. Buyers love uncluttered spaces, especially in the kitchen! Stow-away small appliances in your now-half-empty cabinets(!)

Paring your personal belongings has an added bonus, too - it helps you get a head start on packing up your house to move!

Removing Dirt and Stains

Removing dirt and stains is crucial. Give your home a thorough cleaning (including carpets, flooring, windows and sills, woodwork, ceiling fans and walls, porches and decks).  Kitchen and baths, especially, should be immaculate. Dust bookshelves, TVs, furni­ture, etc. Keep the front entrance swept and free of cobwebs, shoes, etc. Keep the lawn mowed and natural areas mulched and weed-free. If you own a pet, there should be little evidence, with no pet odors or stains.

Next we will look at the other “Rs” of home staging - refreshing your home with paint and re-arranging for the most appeal.

The real estate professionals at HomeBuyingForLess are ready to make your next move quicker and easier. Call us today at 1-888-201-8565.

 

 

 

 

 

 

 

 

 

 When you become a seller, your home becomes a house, or rather a commodity, and for this you must separate yourself from your home.  Removing an overabundance of personal items, reducing clutter, and adding more neutral décor is a start. It can also be helpful to ’see’ your home through the eyes of another. Invite a friend over to help look for areas that might need improvement. If there’s a problem area in your home, a friend or potential buyer will see it even if you no longer do.

 Preparing your house to appeal to the largest pool of buyers will help you get the very best price for your home. And that’s where staging, in all its forms, comes in. A properly staged home leads the eye to the attractive features and attributes the property has to offer.  You want your home to become a warm and welcoming product that anyone might want.

 For help in transforming your home to appeal to the most buyers and in finding a new home, call the professionals at HomeBuyingForLess. Along with conventional full real estate service at unconventional discounts, we offer home staging consultation and other services. Call us today at 1-888-201-8565.

Next, we’ll look at the 3 “R”s - the basic home staging concepts that will attract the most buyers to your home.

 

Properties That Qualify

Qualified buyers can claim the tax credit on: 

Properties that are their principal residence or ‘main home.’.  A simplified definition of ‘main home’ is the one lived in most of the time. This principal residence could be a:

Single-family detached house

Townhome

Condominium

Multi-family dwelling, if it is the principal residence of the buyer

Manufactured or Mobile Home

Houseboat

Cooperative Apartment 

Another requirement is that property must be located in the United States.

Also qualifying is a new home constructed by the homeowner (rather than purchased from a builder) on their own lot. This is treated by the tax code as having been “purchased” on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after January 1, 2009 and before December 1, 2009.

Properties That Don’t Qualify

Qualified buyers cannot claim the tax credit on:

Properties acquired by gift or inheritance

Properties located outside the United States

Properties acquired from a related person. A related person includes:

A spouse

Ancestors – parents, grandparents, etc.

Lineal descendants – children, grandchildren, etc.

Properties purchased from a corporation in which you directly or indirectly own more than 50% in value of the outstanding stock of the corporation

Properties purchased from a partnership in which you directly or indirectly own more than 50% of the capital interest or profits interest

If you would like to take advantage of the tax credit before the deadline, the real estate professionals at HomeBuyingForLess can walk you through the process. We even offer a  rebate at Closing for our buyers.  Call us today at 1-888-201-8565.

The short answer to that question is qualified first time home buyers, but ‘qualified’ means more than having your finances in order. To take advantage of the American Recovery and Reinvestment Act of 2009 before the deadline, you need to know the following:

Who is eligible?
First-time home buyers purchasing a new or resale home located in the U.S. between now and December 1st, 2009 are eligible. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.

What is the definition of a first-time home buyer?
The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase.

For married taxpayers, both the home buyer and his or her spouse must not have owned a prior principal residence.

What if co-buyers are not married?

Unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter.

Can a buyer purchase a home from a relative and claim the tax credit?

No. You cannot purchase a home from your ancestors (parents, grandparents, etc.), your lineal descendants (children, grandchildren, etc.) or your spouse. IRS form 5405 also says the home cannot be acquired by gift for inheritance.

Are there any income limits for claiming the full tax credit?
Yes. The income limit for single taxpayers is $75,000. The limit for married taxpayers filing a joint return is $150,000. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. This and other information is available on the IRS and the NHBA websites.

Remember, the tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.  If you’re a qualified buyer who would like to take advantage of this and other savings opportunities, the experts at HomeBuyingForLess are ready to help you find your ideal home.  Call us toll-free at 1-888-201-8565.

  

 

 

 

 

 

 

 

 

 

 

1. The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
2. This tax credit does not have to be repaid, as long as the buyer occupies the home for 3 years or more.
3. The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
4. The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
5. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

Rob Dietz, Ph.D., director of tax issues for the NAHB, discusses the tax credit in this videotaped interview:

With less than 3 months left in the program, first-time home buyers need to start the process immediately to take advantage of the savings.  At HomeBuyingForLess, our licensed realtors can assist you in identifying your perfect home. Our skilled team can help you through the home buying process. HomeBuyingForLess even offers a rebate at Closing for our buyers.  This can amount to thousands of dollars!  Call us today - we are ready to get started!