Eric Slifkin, Broker Associate

I have been asked by a number of clients about the new tax credit that was included in the recently passed economic stimulus bill. The following overview will help to explain what the new credit is all about:

Qualifying For The Credit

1. To qualify for the credit the home purchase must take place between 1/1/2009 through 12/31/2009.

2. The 2009 tax credit is an $8000 refundable tax credit or 10% of the purchase price. This means that if the purchase price of a home is $80,000, then you will hit the maximum of $8,000.

3. Refundable means that if you owe a tax liability of less then $8,000 the IRS will send you a refund of the difference. If you do not have a tax liability that is larger then $8,000, you will get a cash refund.

Exceptions to The Credit

1. There is a phase out range for this tax credit. For Joint tax filers it is $170,000 and single tax payers it is $95,000. If the home is purchased from a close relative such as spouse, parents, child, grandparents or grandchild, you are not entitled to the credit.

2. The home is not a primary residence. A primary residence is one where you spend the majority of you time (over 50%). Condos, single family and town houses are acceptable. No second or vacation homes. For new construction, the purchase date must be prior to 12/31/2009.

3. The recipient of the tax credit sells their home before the end of a full three years of ownership. If the home is sold prior to the three years of ownership the tax credit must be repaid.

4. The tax credit can be claimed on your 2008 or 2009 Tax Returns.

5. Nonresident alien's are not eligible.

6. A first time homeowner means that they did not own another primary residence at any time during the three years prior to the new purchase. If they are joint tax filers they both must meet the above criteria to qualify. This credit does not have to be repaid, which is different then the one passed last year.

Income Limits

1. Single filers $95,000

2. Married filers $170,000

3. The phase out for the income limit of $95,000 starts at $75,000 and for married at $150,000. A phase out means that the credit is proportionately reduced between the $75,000 and the $95,000, and the $150,000 and the $170,000.

I hope that this helps to explain about the new credit. For more information about the tax credit, first time home buyer programs or home loans please contact Wayne Katz, Senior Mortgage Advisor at Group One Mortgage, 561-791-0000 or contact me with any questions you may have about buying a home on the treasure Coast.

The first time I drove through Palm City nearly ten years ago I knew it was where I wanted to buy my Florida home. As a transplant from suburban New Jersey I was seeking a family friendly town with tree lined streets, sidewalks, parks and the sense of community I enjoyed back home. I have not given it much thought since my move to Palm City in 2002, but was reminded of these qualities this week after several buyers made nearly identical comments while I showed them area homes and neighborhoods.

As we pulled into town off the I95 interchange, the first thing my clients saw was children playing and riding bikes. They were pleasantly surprised to see this and were excited to discover our little town. The scene was repeated later that day with my next clients. We arrived about 3PM and on queue kids poured out of school, gathering in groups for their walk home (not a common site in Florida where children are mostly bussed to and from school). My clients were further impressed to see people strolling, shopping and enjoying a snack at a local cafe. While touring Palm City's homes and leafy neighborhoods they decided this was where they wanted to raise their family.

If you would like to know more about Palm City or schedule a private tour, please feel free to call me or visit www.PalmCityAgent.com to discover Palm City homes and neighborhoods.

Common Closing Costs for Buyers

The myriad of fees associated with the buying or selling of a home are called closing costs. Some fees are automatically assigned to either the buyer or the seller while other costs are either negotiable or dictated by local custom. Your lender must provide a good faith estimate of all settlement costs prior to closing- the title company or other entity conducting the closing will tell you the required amount to bring to the closing.

Typical Buyer Closing Costs

• Down payment
• Loan origination fees
• Points, or loan discount fees you pay to receive a lower interest rate
• Appraisal fee
• Credit report
• Private mortgage insurance premium
• Insurance escrow for homeowners insurance, if being paid as part of the mortgage
• Property tax escrow, if being paid as part of the mortgage.
  
  About escrows - lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you. Note: when financing more than 80% (LTV), escrowed property taxes and insurance are required, which will increase your monthly mortgage payment.
  
  
• Deed recording fees
• Title insurance policy premiums
• Survey
• Inspection fees-building inspection, termites, etc.
• Notary fees
• Prorations for your share of costs such as utility bills and property taxes
  
  A Note About prorations - At the closing, certain costs are often prorated (or distributed) between buyer and seller. Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance.
  
  The most common prorations are for property taxes. This is because property taxes are typically paid at the end of the year for which they were assessed. Thus, if a house is sold in June, the sellers will have lived in the house for half the year, but the bill for the taxes won't come due until the following year. To make this situation more equitable, the taxes are prorated. In this example, the sellers will credit the buyers for half the taxes at closing.

Avoid Closing Delays

Your closing can be delayed by a number of issues including:

• clouded title
• a home not appraising for value
• encroachments or other survey issues
• a rapid change in interest rates
• an undisclosed credit or income issue
• inspection or repair problems
• or one of countless other unanticipated issues.

Don't buy your home without my assistance! I understand what it takes to help you through your closing and can handle much of the work involved throughout the transaction with the least amount of stress to you.

When my client purchased this Palm City fixer upper it had not been touched in over ten years. Once a modest retirement home with just two bedrooms, dated kitchen and overgrown landscaping, it was ready for a makeover. The buyer, a cabinet maker by trade, invested about $20,000 and several months of sweat equity to create a comfortable three-bedroom home that a first time home buyer would find appealing.

Before

After

See the full set of "after" pics: http://tinyurl.com/abtnjx

Renovations included a new third bedroom, laundry room and remodeled bathrooms. A driveway and lawn was installed and the entire property landscaped. It is presently rented until the market recovers.

When it comes to selling a house you should consider performing minor repairs and maintenance to help get the best price for your home. Here are some helpful tips:

1. You will want to do some handy work like replacing cracked tiling, filling holes or repairing leaky faucets. Remove or replace anything that makes the house seem worn like dated drapes and old carpets. Pay attention to small things such as burned out light bulbs, broken fixtures and missing wall plates.
   
2. Think about things like doors and windows. Make sure that they close and lock properly and cracked or broken windows are fixed. Sliding or bi-fold closet doors should be secure and function properly within their tracks.
   
3. You may also need to do some painting (no one wants to purchase a home with crazy colored walls). Paint your walls a neutral color using light shades of brown and off white.
   
4. Clean your home thoroughly from top to bottom. You need to make sure that every surface in the house sparkles. Take the vacuum out and suck up every inch of dirt by swiping the carpets and blinds; anything that you can clean with your vacuum you should. Wash your windows inside and out. Cleaning not only makes your home show better, but it will also make the house smell as good as it looks.
   
5. Make sure that that the outside is warm and inviting. Plant some flowers, mow the grass and wash the sidewalks. Shrubs should be neat and trimmed. Your house numbers should be clearly visible from the road so that you don't have people turning around out of frustration trying to find the house.

Do not wait to take care of needed repairs - you do not want to lose any potential buyers by letting them see the home without the finished product. These easy fixes require little work and will ensure your home sells for the most money and in the least amount of time.