Not Owned Your Home for the Past 3 Years? You’re a 1st Time Buyer!
Date: Wednesday March 11, 2009Posted in: real estate, Santa Clara County, Home buying, first time buyer, tax credit
Most likely you’ve heard about the First-Time Buyer Credit offered through the 2009 Economic Stimulus Package passed by Congress. But what you may not realize is that even if you owned a home previously, if you haven’t owned your primary residence within the past three years, you are considered a first-time buyer and may apply for the tax credit of $8000.
This tax credit is for $8000 or 10% of the purchase price, which ever is smaller. In Santa Clara County, chances are that you are not purchasing a residence for less than $80,000 and so will receive the full $8000 credit on your taxes. The home must be purchased between January 1, 2009 and December 1, 2009, so time is of the essence. This credit is unlike the 2008 first-time buyer credit in that it does not have to be repaid to the IRS.
Single taxpayers with modified adjusted gross incomes (MAGI) up to $75,000 will receive the full credit. The credit is reduced proportionally with a MAGI up to $95,000. Any single taxpayer earning over that will not receive the credit. Married couples with MAGI up to $150,000 will receive the full credit. In this case the credit is reduced proportionally with a MAGI up to $170,000. Married couples earning over $170,000 will not receive the tax credit.
For more information, the National Association of Home Builders provides an informative site: http://www.federalhousingtaxcredit.com/2009/glance.php
Please consult your tax advisor for more information regarding the tax implications of buying real estate.
Take the Stress Out of Homebuying
Date: Sunday November 30, 2008Posted in: real estate, real estate buyers, Home buying
Buying a home should be fun, not stressful. I help my clients by taking on much of the behind-the-scenes details, which lowers their stress. As you look for your dream home, keep in mind these tips for making the process as peaceful as possible.
1. Find a real estate agent who you connect with. Home buying is not only a big financial commitment, but also an emotional one. It’s critical that the REALTOR® you chose is both highly skilled and a good fit with your personality.2. Remember, there’s no “right” time to buy, just as there’s no perfect time to sell. If you find a home now, don’t try to second-guess interest rates or the housing market by waiting longer — you risk losing out on the home of your dreams. The housing market usually doesn’t change fast enough to make that much difference in price, and a good home won’t stay on the market long.3. Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder to make a decision. Focus on the wants and needs of your immediate family — the people who will be living in the home.4. Accept that no house is ever perfect. If it’s in the right location, the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the roof needs repair. Make a list of your top priorities and focus in on things that are most important to you. Let the minor ones go.
5. Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price or by refusing to budge on your offer may cost you the home you love. Negotiation is give and take.6. Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical aspects of the house itself — room size, kitchen, etc. — that you forget about important issues as noise level, location to amenities, and other aspects that also have a big impact on your quality of life. 7. Plan ahead. Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be costs. Don’t leave yourself short and let your home deteriorate.9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big financial commitment. But it also yields big benefits. Don’t lose sight of why you wanted to buy a home and what made you fall in love with the property you purchased.10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of 5.4 percent annually over from 1998 to 2002, a home’s most important role is to serve as a comfortable, safe place to live.
