Gina Chirico, Specializing in Essex County, Prudential New Jersey Properties

Originally posted in my How Many Buyers and Sellers have Benefited from the $8000 Tax Credit post, which was written in line with the 2009 First-time Homebuyer $8000 tax credit deadline of November 30, the following tips may help first-time homebuyers, repeat buyers (i.e., move up buyers or empty nesters) and sellers close escrow before July 1, 2010 and reap the benefits of the Extension and Expansion of the Homebuyer Tax Credit.

FOR BUYERS who want to benefit from the $8,000 federal tax credit, taking advantage of low prices and attractive interest rates, the following tips may help you close escrow before July 1, 2010:

• You need to contact a REALTOR® today;
• You need to have a solid pre-approval from a reputable bank;
• You need proof of funds for cash deals;
• Don't waste time with low ball offers, have your REALTOR® run the sold comparable properties, make an educated offer and definitely in a multiple offer situation...put your best offer on the table because you may not get a second chance;
• Don't waste your time looking for houses out of your price range - you can only buy and a bank will only lend you money what you can afford to buy;
• Get in and out of attorney review (not sure about other states but here in NJ, listings in attorney review are still active listings and offers can still be submitted thus bumping your offer right off the table) and/or request the seller agree to back-up offers only;
• Even with the extension, most short sales, if not all short sales, will never close in time (by July 1, 2010);
• You lose control on purchases where the sellers need to find suitable housing before they can sell (your purchase would then be contingent upon the seller first finding another house); and
• You need to be under contract by the end of April 2010 and close no later than June 30, 2009.

FOR SELLERS who really want to sell their home, take advantage of today's affordability, and the expansion of the $6,500 tax credit, the following tips may help you close escrow before July 1, 2010:

• Price your home at market value from the start (Do NOT overprice);
• Work with a REALTOR® in your area who has an aggressive marketing plan;
• Make your home irresistible (do everything you can to make the home so attractive, charming, cozy, inviting, comfortable and exciting so that a buyer would want that lifestyle too);
• Be flexible with showings, lockbox and for sale sign (a home cannot sell if a buyer cannot get in to see it and even more importantly, it cannot be sold if nobody knows its for sale);
• If you don't want to sell your house, don't put it on the market not only does it waste the time of buyers and their agents but it brings the property stats down as well);
• If selling and buying, do not make an offer on the house you want to buy until your house is under contract, and if at all possible, after the home inspection and mortgage contingencies are satisfied on your sale (most sellers will not sign a contract with a home sale contigency...would you?); and
• If selling and buying and if you qualify for the $6,500 tax credit, you need to be under contract no later than the end of April 2010 and close no later than June 30, 2009.

For more information on the First-Time Homebuyer $8000 Tax Credit Extension and the Expansion Credit of $6,500 to move-up buyers, please read my post First-Time Homebuyer Extended through April 30, 2010 and Expanded to Include Qualified Homeowners.

Even with the extension there is no reason for New Jersey buyers and sellers to still be waiting on the fence. It takes time to buy and sell your New Jersey home. Don't wait until the last minute...wouldn't you like to be in your new house before we spring forward?

With the Extension and the Expansion of the First-Time Homebuyer Credit...there's never been a better time to make your move in New Jersey.

If you are like many other people -- you may be thinking...What's the Big Deal or the tax credit only benefits First-Time Homebuyers, yada yada yada....

Let me tell you what the big deal is!! 

Let's back up a minute....for starters, the original tax credit of up to $8,000 for first-time homebuyersdid not only benefit first-time homebuyers -- think about all the sellers who sold their house to first-time homebuyers.  Those sellers benefited too from the sale of their house to first-time homebuyers. 

Moving forward....not only has the tax credit of up to $8,000 for first-time homebuyers been extended from November 30, 2009 through April, 2010, the income limits have been raised thus allowing more first-time homebuyers to take advantage of the tax credit being offered.   Some key points to the $8,000 first-time homebuyer credit include:

• To qualify as a "first-time homebuyer" the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase and must purchase a home between November 7, 2009 and April 30, 2010.  As long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until June 30, 2010 to close.
• The income limits to qualify for the full credit are $125,000 for a single person and $225,000 for a married couple.  Individuals earning up to $145,000 and married couples earning up to $245,000 are eligible for partial credit.  (The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income-over $145,000 for singles and over $245,000 for couples are not eligible for the credit.)
• The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.

Not only will Move-Up Buyers and Empty Nesters (i.e., REPEAT BUYERS) reap the benefits from selling their house ONLY to First-Time homebuyers (i.e., the old tax credit), but current homeowners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight may be eligible for the new tax credit of up to $6,500 ($3,200 for those filing separately).  Some key points to the tax credit expansion include:

• To qualify, you must have owned your home and used it as a principal residence for at least five consecutive years of the previous eight years.  (E.g. If you sold a home you owned and lived in for five years two years ago, and have been renting since, you'd still be eligible for the credit.) As long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until June 30, 2010 to close.
• The income limits to qualify for the full credit are $125,000 for a single person and $225,000 for a married couple.  Individuals earning up to $145,000 and married couples earning up to $245,000 are eligible for partial credit.  (The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income-over $145,000 for singles and over $245,000 for couples are not eligible for the credit.)
• The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.
• Your new house does not need to cost more than your old house for you to be approved for the credit.

• The credit cannot be used on homes costing more than $800,000.

For more special tips on how buyers and sellers can take advantage of the First-time Homebuyer Extended Tax Credit of up to $8,000 and the New Tax Credit of up to $6,500 for qualified move-up/empty nester/repeat home buyers (i.e., existing homeowners) and close escrow before July 1, 2010, please read my post Tips for First-Time Homebuyers, Repeat Buyers and Sellers to Close Escrow by July 1, 2010 (The Extension and Expansion of the Homebuyer Tax Credit) .

In addition to the tips I posted in my blog, you basically need to:

1. Find a Realtor;
2. Get a pre-approval;
3. Look at homes;
4. Choose a home and make an offer;
5. Negotiate terms;
6. Complete attorney review, conduct inspection, property appraisal, homeowners insurance BEFORE April 30, 2010;
7. Get financing and close the deal BEFORE July 1, 2010.

(Keep in mind that steps 3-6 may have to be repeated...several times).

Even with the extension there is no reason for New Jersey buyers and sellers to still be waiting on the fence.  It takes time to buy and sell your New Jersey home.  Don't wait until the last minute...wouldn't you like to be in your new house before we spring forward?

West Essex at a Glance

Market Reports and Stats for North Caldwell, New Jersey for October 2009

North Caldwell, New Jersey Market Report for October 2009:

• Active Listings: 41
• Under Contracts in October: 2
• Solds in October: 4
• Months Supply on the Market: 20.5
• Absorption ratio: 5% (only 5% of the total inventory went U/C in October, leaving 95% of the inventory unsold)

The market stats in the chart above above also reflect:

• New Listings for the month of October: 67
• Total properties Under Contract (including those u/c through the end of October): 10

There are currently no multi-family homes on the market in North Caldwell, New Jersey.

Roseland , New Jersey 07068 and Essex Fells, New Jersey 07021 are part of the West Essex Regional School District. The West Essex Regional School District (grades 7-12) is located in North Caldwell and serves the four area sending districts of Essex Fells, Fairfield, North Caldwell, and Roseland. Each town maintains their own grammar schools for grades K-6.

These four suburban residential West Essex communities located only 25 miles from New York City have a combined population of approximately 23,000 people and cover an area of 18 square miles.

MARKET SNAPSHOT FOR THE FOUR SENDING DISTRICTS OF THE WEST ESSEX REGIONAL SCHOOLS

Snapshot of The Four Sending Districts of the West Essex Regional School District for October 2009:

• Active Listings: 156
• Under Contracts in October: 18
• Solds in October: 11
• Months Supply on the Market: 8.7
• Absorption ratio: 12% (only 12% of the total inventory went U/C in October, leaving 88% of the inventory unsold)

Search for homes currently on the market in North Caldwell, New Jersey. For more information on homes for sale within the West Essex Regional School District, please contact Gina Chirico.

• Read about the Eight Communities within West Essex

• View Market Stats for all EIGHT of the West Essex Communities for October 2009.

Your Resource for West Essex Real Estate,

West Essex at a Glance

Market Reports and Stats for Roseland, New Jersey and Essex Fells, New Jersey for October 2009

Roseland, New Jersey Market Report for October 2009:

• Active Listings: 41
• Under Contracts in October: 7
• Solds in October: 2
• Months Supply on the Market: 5.9
• Absorption ratio: 10% (only 10% of the total inventory went U/C in October, leaving 90% of the inventory unsold)

The market stats in the chart above above also reflect:

• New Listings for the month of October: 7
• Total properties Under Contract (including those u/c through the end of October): 10

There are currently no multi-family homes on the market in Roseland, New Jersey.

Essex Fells, New Jersey Market Report for October 2009:

• Active Listings: 18
• Under Contracts in October: 3
• Solds in October: 6
• Months Supply on the Market: 5.9
• Absorption ratio: 17% (only 17% of the total inventory went U/C in October, leaving 83% of the inventory unsold)

The market stats in the chart above above also reflect:

• New Listings for the month of October: 6
• Total properties Under Contract (including those u/c through the end of October): 3

There are currently no multi-family homes on the market in Essex Fells, New Jersey.

Roseland , New Jersey 07068 and Essex Fells, New Jersey 07021 are part of the West Essex Regional School District. The West Essex Regional School District (grades 7-12) is located in North Caldwell and serves the four area sending districts of Essex Fells, Fairfield, North Caldwell, and Roseland. Each town maintains their own grammar schools for grades K-6.

These four suburban residential West Essex communities located only 25 miles from New York City have a combined population of approximately 23,000 people and cover an area of 18 square miles.

MARKET SNAPSHOT FOR THE FOUR SENDING DISTRICTS OF THE WEST ESSEX REGIONAL SCHOOLS

Snapshot of The Four Sending Districts of the West Essex Regional School District for October 2009:

• Active Listings: 156
• Under Contracts in October: 18
• Solds in October: 11
• Months Supply on the Market: 8.7
• Absorption ratio: 12% (only 12% of the total inventory went U/C in October, leaving 88% of the inventory unsold)

Search for homes currently on the market in Roseland, New Jersey. Search for homes currently on the market in Essex Fells, New Jersey. For more information on homes for sale within the West Essex Regional School District, please contact Gina Chirico.

• Read about the Eight Communities within West Essex

• View Market Stats for all EIGHT of the West Essex Communities for October 2009.

Your Resource for West Essex Real Estate,

West Essex at a Glance

Market Report and Stats for Fairfield, New Jersey for October 2009

Fairfield, New Jersey Market Report for October 2009:

• Active Listings: 59
• Under Contracts in October: 7
• Solds in October: 3
• Months Supply on the Market: 8.4
• Absorption ratio: 11% (only 11% of the total inventory went U/C in October, leaving 89% of the inventory unsold)

The market stats in the chart above above also reflect:

• New Listings for the month of October: 10
• Total properties Under Contract (including those u/c through the end of October): 16

There are currently no multi-family homes on the market in Fairfield, New Jersey.

Read about the Communities within West Essex

Fairfield, New Jersey 07004 is part of the West Essex Regional School District.

The West Essex Regional School District (grades 7-12) is located in North Caldwell and serves the four area sending districts of Essex Fells, Fairfield, North Caldwell, and Roseland. Each town maintains their own grammar schools for grades K-6.

These four suburban residential West Essex communities located only 25 miles from New York City have a combined population of approximately 23,000 people and cover an area of 18 square miles.

MARKET SNAPSHOT FOR THE FOUR SENDING DISTRICTS OF THE WEST ESSEX REGIONAL SCHOOLS

Snapshot of The Four Sending Districts of the West Essex Regional School District for October 2009:

• Active Listings: 156
• Under Contracts in October: 18
• Solds in October: 11
• Months Supply on the Market: 8.7
• Absorption ratio: 12% (only 12% of the total inventory went U/C in October, leaving 88% of the inventory unsold)

Search for homes currently on the market in Fairfield, New Jersey. For more information on homes for sale within the West Essex Regional School District, please contact Gina Chirico.

Your Resource for West Essex Real Estate,