Archive for First-Time Homebuyer
House of Representatives Approves Tax Credit | Bill Signed by President
Update: Bill signed into law by President Obama this morning. 11/06/2009
Now, it’s on to President Obama for signature in the next few days.
Here’s a chart of the differences between the existing tax credit and the revised (primarily there’s provisions not just for First Time Homebuyers but also for those that have owned a home and are purchasing a replacement property.) There are many fine points to the changed tax rules. It is in your best interest to get advice from qualified tax professionals and understanding your options in relation to these “new” tax guidelines.
The Home-buyer Credit is an amendment (S. A. 2712) to the Unemployment Compensation Extension Act (H.R. 3548)
(click on chart for a larger view or use your zoom tool on your browser)
This should prove to be very helpful for buyers and sellers in the Corvallis, Oregon and surrounding markets of Albany, Oregon; Philomath, Oregon; Lebanaon, Oregon and Linn and Benton County by creting movement throughout the market, not just in the “first time homebuyer” segment.
Senate Passes Homebuyer Tax Credit…
Today the US Senate passed the Homebuyer Tax Credit witha 98 to 0 vote. The credit is included in the Unemployment Bill. In order for it to be effective The house must still pass this legislation and then President Obama must sign it into law. It is generally expected to be to The President by the end of the week.
In essence, the bill extends the $8,000 first-time homebuyer credit through April 30, 2010 and provides a $6,500 credit to new purchasers who have lived in their current residence for five or more years.
In Corvallis, Albany and Philomath, this should help create movement in the housing market by assisting the mid-range of the market to move-up into the currently slow upper range; assisting owners of lower cost “entry level” homes to move into the mid-range; thus, freeing up entry level housing for first time homebuyers.
Exciting news for the real estate industry in Oregon; and good news for buyers and sellers in Corvallis, Albany and the surrounding communities in the Willamette Valley of Oregon.
The extension was expected in late October, but has been slow in coming…
“People are going to wonder, how is it, that something that is just common sense and fairness should take so long to make its way through the United States Congress,”‘ Oregon Sen. Ron Wyden said after the vote.
Key Provisions of the Bill Follow (Provided by Teresa “Terry” Estergard, Wells Fargo Bank):
HOMEBUYER TAX CREDIT SUMMARY
S.A. 2712 would:
- Extend through April 30, 2010 the tax credit for first-time homebuyers (up to $8,000 or up to 10 percent of the purchase price of the residence), allowing 60 days to close, provided that the homes are under a binding contract by that date;
- Provide homebuyer tax credit of up to $6,500 to owners who have been in the same principal residence for five consecutive years during the previous eight years;
- Increase the income limitations to $125,000 for individuals and $225,000 for joint filers;
- Phase out the credit for individuals with incomes above $125,000 for individuals and $225,000 for joint filers at the same rate as current law (over the next $20,000);
- Limit the credit to purchases of principal residences equal to or less than $800,000;
- Eliminate the 36-month recapture requirement for military personnel, including members of the Foreign Service and intelligence community, forced to sell as a result of an official extended duty of service; and
Extend the tax credit for one year for military personnel serving outside the United States for at least 90 days in 2009 or 2010. - S.A. 2712 would also include anti-fraud language. The measure would not extend the credit to taxpayers under the age of 18 on the date of purchase unless that person is married to a taxpayer above the age of 18. The amendment would also require a properly executed copy of the settlement statement to be attached to the tax return. Moreover, the substitute would expand the restriction on a residence acquired from a family member to include a residence acquired from a spouse’s family member.
- S.A. 2712 would also extend math and clerical error authority to the Internal Revenue Service.
Breaking News | First Time Homebuyers and others
There was a lot of chatter on the news (and real estate blog sites and on-line news posts) yesterday and this morning about extending and possibly expanding the (first time home buyer) tax credit. Most news reports did not make it clear that the agreement reached by Senate leadership has not found its way into an existing bill or a stand alone bill. That may be resolved today. Once a bill passes the Senate, it still must go to the House for concurrence; and then has to be signed into law by the President. In other words, any action has a long way to go before it becomes law. The action in the Senate yesterday was good news and significant; however, this is not yet a done deal. If you support extending and/or expanding the tax credit, now is the time to contact your senators and congressmen to let them know how you feel.
A side note: Jobs are important; statistically every home transaction brings into the local community approximately $63,000. That movement of money can help improve the local economy.
Agree or disagree, this is an important issue for Real Estate Agents and those concerned with the Corvallis, Albany and Mid-Willamette Valley market.
If some form of this bill passes, I would expect to see some movement of Buyers and Sellers in the Corvallis, Oregon and Albany, Oregon markets. More first-time home buyers will have time to enter the market, and the move-up buyer will be in a better position to purchase in the Luxury Home Market; creating demand at all levels.
To get in touch with (or find out who they are) your elected officials you may want to visit Senate.gov or your Congressman at House.gov
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Corvallis and Albany Coldwell Banker Valley Brokers Open Houses | October 4, 2009
Coldwell Banker Valley Brokers will be holding the following properties open from 1:00pm until 4:00pm on Sunday, October 4th. Please join us.
2482 NW Woodcrest Ave NW, Albany, Oregon $250,000
Well kept home in North Albany, 4 bedrooms, 2.5 baths, 2002+/- sq. ft. on nearly one-half acre in North Albany. View property with RV space. MLS 611961
2765 NW Orchard Heights NW, Albany, Oregon $325,000
Newer home (built in 1998 and well cared for), in North Albany, 4 bedrooms 2,5 baths, 2730+/- sq. ft. .21 acre lot, open floor plan, RV parking. MLS 605359
2006 NW Morning Glory, Corvallis $232,000
Easy living 3 bedrooms, 2.5 baths attached home, near city park. First time home buyer opportunity (there’s still time to take advantage of the first time homebuyer tax credit) or a great investment property. MLS 616575
7241 NW Madrone Way, Corvallis, Oregon $379,000
4+ bedrooms, 2.5 baths, 2616+/- sq. ft., theater room, family room, large shop, attached two car garage, open lot with garden space & RV parking. MLS 614222
1745 NW Locust St, Corvallis $254,000
3 bedrooms, 1.5 baths, single level1398+/- sq.ft., shop/studio, .24 acres, centrally located. MLS 610576
33585 SE Shoreline Drive, Corvallis $439,900
5 bedrooms, 3 baths, 3456+/- sq. ft., bonus room, luxurious master suite with double fireplace, community pool and fitness center MLS 612720
Attention: First-Time Home Buyer $8,000 Tax Credit Expires 12/01/2009
If you can close escrow on a home prior to December 1, 2009, you may be entitled to an $8,000 tax credit. This amendment to the economic stimulus bill will be available to you if you purchase your first home between 1/1/2009 and 12/1/2009. Home buyers will be entitled to claim a total tax credit of $8,000 or 10% of the purchase price, whichever is less. To avoid possible abuse of this credit, it is only allowed for your primary residence and will only have to be re-paid if said house is sold within three years of purchase. Keep in mind that you must close before December 1, 2009 to be eligible for credit. Most closings take about sixty days, so with that in mind you should go under contract by October 2nd, 2009 — not really all that much time to find your first home. One interesting thing to note: even if you’ve owned a home before, but have not owned in the last 3 years, you may qualify. If you can meet these deadlines, all you have to do to claim your credit is fill out I.R.S. Form 5405.
For more information about this credit go to the IRS website.
For a summary of the “First Time Home Buyer Tax Credit” review this pamphlet provided by the National Association of Realtors®
If You Are Buying Now, Know These Ins-And-Outs To Get The Most For Your Money
If you are in the enviable position right now of looking to buy a home, enjoy the current market: the buyer’s market! Many folks that have to sell their homes right now are happy to start a dialogue with a potential buyer, so arm yourself with any and all information to get the best deal possible!
- Right now you have more time to look, so you will be better armed with the knowledge of which houses have been sitting on the market for a while. These homeowners might be more likely to negotiate.
- Consider looking at new construction. Builders sometimes offer incentives and sometimes have very attractive financing programs.
- In certain areas that have been hit a bit harder by the market downturn, you certainly do have the upper hand whilst negotiating – and can always ask for an upgrade or a major repair before finalizing the deal. More important, know the market! Get information on what’s happening now. I can say with some certainty, the Corvallis Market has been less impacted than one might believe.
- Some buyers are asking for a written warranty on appliances and certain structural repairs. Down the road this could be a big money-saver for you. Coldwell Banker and American Home Shield provide a product that not only protects the buyer for the first year of homeownership, it covers the seller too! Asking for a warranty early in the transaction can help with inspection related items.
- Motivated sellers are more likely to work with your timeline. Don’t be afraid to ask if the closing can be pushed out. But, remember, pushing out the closing can also create issues for a buyer. Think about interest rate lock expiration dates and the fact that the longer closing is going to cost the seller (especially if the house is vacant or in default)
- Even some lenders are willing to negotiate. The lending business is competitive. Compare lenders, not just interest rates, but fees as well. Find out if the lender with the best rates and fees also has a track record of delivering… Reputation is very important. And, today, the appraisal environment can be problematic. Find out how long that part of the process is taking.
For Any First-Time Home Buyer, Consider These Points Before You Take The Plunge
When thinking of buying your first home in Corvallis, Albany, Philomath or anywhere else for that matter, it can be a very exciting milestone in your life. It is very easy to picture all of the good times you will have there in the future, but many people get lost in the excitement and forget to plan for a rainy day. To avoid losing that home to unforeseen circumstances down the line such as a job loss or an illness, keep these things in mind when considering purchasing your first home.
- Make sure that you have enough in savings to cover your mortgage while you find a new job, should you lose your job. Many experts recommend at the very least to have six months worth of savings to cover all expenses, including the mortgage.
- Understand before purchasing your home, all of the expenses that will be involved to maintain the home. If you are considering purchasing a fixer-upper, make a list of all of the inevitable things that will need to be replaced or repaired and their costs.
- Consider your other expenses, such as your car payment or transportation costs, taxes, etc. and whether or not this new home will be affordable for you.
For more information on the First-time home buyer tax credit go to Federal Housing.
Are You Moving? Here Are Helpful Tips To Find The Neighborhood Of Your Dreams
Choosing the right community is so important, as how you can you really love where you live unless you love the neighborhood? In the frenzy of finding a home and scheduling moving day, many people forget that researching the neighborhood is one of the most important ways to insure happiness at your new destination. Before making your final decision on a home, don’t forget to:
- “Profile” the neighborhood. Ask yourself these questions: Is the quality of the school system important? Is the commute do-able for you? Do you like to be within walking distance to shops and restaurants? Do you like quiet?
- Once you zero in on a neighborhood you like you must research all school information, crime statistics, parks and recreation, neighborhood association fees and tourist attractions. Armed with this information it will be easy for you to make a wise decision.
- Take the time to visit. Don’t downplay your first impression. Take note of the community’s rush hour patterns, it’s social ability factor, it’s streetlights at night. Drive by the schools. Shop in the local grocery store. Try to meet some of your potential neighbors. All of these visual clues can be very revealing.
For more interesting ways to figure out if a neighborhood is right for you click here.
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