Home Buying for Less Real Estate Blog

The Expansion of the Home Buyers Tax Credit

November 18th, 2009

If you have recently considered purchasing a new home, added incentives are now available with the recent extension and expansion of the First-Time Home Buyers Tax Credit. The previous deadline of December 1st , 2009 has been extended for first-time home buyers, and current homeowners are now included in the tax credit savings, too.

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.

: Steve Doyle, President and Broker-in-Charge

: Lisa Doyle

: Hill Matthews

: Lia Baras

Tags: $6500 tax credit, $8000 tax credit, first-time home buyers tax credit, Home Buyers Tax Credit, new home buyer tax credit
Posted in Home Buying Tips, Uncategorized | No Comments »

The Final “R”s of Home Staging - REPAINT and REARRANGE

November 11th, 2009

You’ve taken the first big steps in staging your home to sell. Your de-cluttered house now looks and smells clean and you’re ready to update your home with the final “R”s of home staging: Refreshing your home with some creative rearranging and possibly new paint for the most appeal.

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.