Kathy Toth Ann Arbor, MI Real Estate

The $6,500 home buyer tax credit applies only to people who have previously owned AND LIVED in their homes for at least 5 consecutive years out of 8 and are planning to purchase a new home by or before April 30, 2010. For those who previously owned a home and purchased another one this year, the tax credit will not apply. It starts when the bill is signed, and it is not retroactive. The important thing is that your contract must be signed by April 30, 2010; you need to close on the transaction by June 30, 2010. So if you closed on a home prior to Nov 6^th, sorry, you’re not getting anything from the government except the standard IRS refund based on your mortgage payments and property taxes.

Most people are likely to claim the $8,000 or $6,500 dollar tax credit in their 2009 tax returns. But, an immediate refund is available to those who amend their 2008 tax returns. This time around, in order to avoid fraudulent refunds, the IRS will require those claiming the tax credit to attach proof of their new home purchase. Also, all purchasers must prove that they are over 18 years of age. This is great news for our Ann Arbor Real Estate.

The new homebuyers tax credit also expands the income limits for buyers. The adjusted gross income limit for single taxpayers to receive full benefits has risen to $125,000 and to $225,000 for joint income tax payers.

The estimated cost of the extended tax credit bill is likely to be around $11 billion. However, according to the National Association of Realtors (see PDF comparison table), the tax credit has already added more than $22 billion to the nation’s economy and will result in more than 2 million home sales.

The tax credit applies to residences priced up $800,000. The majority of homes sold during the initial tax credit program were priced at under $300,000. Only 20% were priced between $300,000 and $400,000. See home buyer tax credit video.

Since its inception in 2008, about 1.4 million people have filed for the home buyer tax credit. However, despite whatever economic stimulation may have resulted, legislators have indicated that this is likely to be the last time the tax credit will be extended.

There are many creative ways of structuring your home purchase transaction in ways that maximize the benefits of the credit. Here are a few examples:
· The credit applies to 1-4 unit homes as long as you live in one of the units as your primary residence – you could live in one unit and rent out the others
· If two unmarried individuals buy a home, and only one of the individuals qualifies for the credit based on their income or past home ownership status, the individual who qualifies for the credit can claim the full credit. (Note: In the case of married couples, both spouses must qualify for the credit.)
· The credit applies even if you have co-signers on your mortgage loan

Here are some frequently asked questions on the changes to the Homebuyer Tax Credit

Question: Existing homeowner credit: Must the new house cost more than the old house?
Answer: No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.

Question: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?
Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.

Question: I am a first time homebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?
Answer: Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you're within the phase-out range).

Question: I am an eligible existing homeowner. I have a fair amount of equity in my home. I
have found a home with a nonnegotiable
price of $825,000. Will I be able to use any
of the $6500 tax credit?
Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount
above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an
absolute ceiling.

Question: I owned my home for 10 years, but sold it two years ago year and have been renting
since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the
other eligibility tests?
Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and
occupied it as his principal residence for 5 consecutive years out of the last 8 years. The
keyword here is "consecutive." As long as he lived in that house for 5 years straight what he
did since 3 years doesn't impact eligibility.

Question: I am an eligible first time
homebuyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me?
Answer: You do not have to close before December 1. Now it is as if the Nov 30 date had never existed. Therefore, so long as the contract settles on or before June 30, 2010, the purchaser will be eligible for the credit.

Home Buyer Tax Credit Extended and Expanded

	Current	New
Effective Date	· January 1, 2009	· December 1, 2009
Deadline	· Close on or before November 30, 2009	· Contract signed before May 1, 2010, must close before July 1, 2010 · Members of the uniformed services, foreign services, and intelligence employees who served an extended service of 90 days will have until April 30, 2011 and June 30, 2011.
Amount	· First-Timers: maximum of $8,000 or 10% of sales price · Prior Owners: $0	· First-Timers: Unchanged · Prior Owners: $6,500 if lived in prior home for at least 5 years of past 8 years
Income Limit	· Individual: $75,000 · Couple: $150,000	· Individual: $125,000 · Couple: $225,000
Other Restrictions	· Home must be primary residence for at least 3 years. If home is sold or buyer moves before 3 years, must re-pay full amount of credit.	· Buyer must be at least 18 years old and not classified as a dependent for tax purposes · Home must cost less than $800,000 · New Home must be primary residence for at least 3 years following purchase. If home is sold or buyer moves, before 3 years, must re-pay full amount of credit. Exception for military, foreign services, or intelligence with extended 90 days service overseas.
How to claim	· If purchased in 2009, by amending 2009 tax return or claiming on 2010 tax return	· If purchased in 2010, by amending 2010 tax return or claiming on 2011 tax return

Link to previous Home Buyer Credit here.

Click here to search Ann Arbor Real Estate using our complimentary Ann Arbor Real Estate MLS Search service. Alternatively please contact Kathy Toth and the team if you need more specific assistance in your Ann Arbor Real Estate needs.

Winter is all most at our front doors! So grab your family and friends and try something new and exciting before the cold weather hits us like a storm. November in Ann Arbor is fantastic and here's how you can enjoy it: Take a walk in Ann Arbor's Main Street and check out all the window displays, relax and enjoy a wine and food tasting, spend a ladies day out at a local craft show or enjoy some comic relief of some classic horror stories to keep the Halloween spirit still alive. Don’t forget to let me know how you enjoy your experiences!

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1/23/2009 - 3/28/2009
MAMBO ITALIANO - ITALIAN BREADS BAKING CLASS WITH ZINGERMANS

Did you know you can travel from Puglia to Genoa to Sicily without leaving Ann Arbor? In Mambo Italiano, we’ll take you on a bread-baking tour across Italy and you’ll return home with loads of ciabatta, focaccia, and sesame semolina and the skills to make them any time you want to satisfy the craving for an Italian holiday. This is a full day of Italian baking from the poolish to the brushing of olive oil (with a little lunch mid-day, but no napping)! While our loaves are rising we’ll sneak into the Bakehouse to see it done on a much bigger scale.

Zingerman's Bakehouse 3711 Plaza Dr. Ann Arbor, MI 48108 Map/Driving Directions

Phone: (734)761-7255

Hours: 9:00am-5:00pm
Cost: $250

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2/5/2009 - 2/14/2009 (Fridays, Saturdays, Sundays)
A2CT Studio Series--EARTH AND SKY
This exciting thriller examines the seedy urban underworld where murder leads to an indistinct demarcation between law enforcement and law infringement.

A2CT Studio Theatre 322 W. Ann St. Ann Arbor, MI 48104 Map/Driving Directions

Phone: (734) 971-2228 Fax: (734) 971-2769 For more information, click here E-mail: manager@a2ct.org

Hours: Fri. & Sat. @ 8pm, Sun @ 2pm
Cost: $15 Reserved Seating; $10 General Seating

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2/5/2009
LADIES NIGHT OUT
Downtown Saline is rolling out the red carpet for ladies again! Gather up your mom, sister, daughter, best gal-pals, co-workers and cohorts and enjoy special treatment up and down the streets. Our retail stores will have trinkets, specials and drawings for goodies and our restaurants will have food and drink specials. What more could a gal want: shopping, food, drinks, and friends!

Downtown Saline Michigan Avenue Saline, MI 48176 Map/Driving Directions

Hours: 3:00pm-8:00pm
Cost: FREE

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2/6/2009
A REVOLUTION IN PLANETARY SCIENCE: THE THREE ZONED SOLAR SYSTEM
Science's view of our planetary system was fundamentally restructured by the 1990's discovery of the Kuiper Belt beyond Neptune and the recent discoveries of numerous Pluto-sized bodies in the Kuiper Belt. S. Alan Stern, former Associate Administrator for Space Science, will be speaking.

Dow Chemistry Building 930 N. University Ave, 1800 of Dow Chemisty Building Ann Arbor, MI 48104 Map/Driving Directions

Hours: 7:30pm
Cost: FREE

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2/12/2009 (The Ark)
MY FOLKY VALENTINE
What better time than Valentine's Day to explore how married couples make music together? "My Folky Valentine" is an annual celebration of romance!

The Ark 316 South Main St. Ann Arbor, MI 48104 Map/Driving Directions

Phone: (734)761-1451 For more information, click here

Hours: 8:00pm
Cost: $15

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2/14/2009 (Chelsea Area Chamber of Commerce)
A CHOCOLATE EXTRAVAGANZA IN DOWNTOWN CHELSEA
Valentine’s Day is fast approaching, and there’s no better way to express your love than CHOCOLATE. Bring a loved one to downtown Chelsea on Saturday, February 14th for the ultimate chocolate experience. Participating stores will be marked with red hearts and will offer free chocolate tasting, sales on chocolate-themed merchandise, door prizes, and various activities from noon - 5 pm.

Downtown Chelsea, MI Downtown Chelsea Chelsea, MI 48104 Map/Driving Directions

Phone: 734-475-3539 For more information, click here

Hours: 12PM-5PM
Cost: Free

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2/14/2009
GRAND TRADITIONS VALENTINE'S BALL
The Romantic Event of the Season! Enjoy dancing to popular music from 1900 to the 1920's. All levels of dancers are welcome. The pre-ball workshops will get you ready to enjoy the evening.

Pittsfield Grange Hall 3337 Ann-Arbor Saline Road Ann Arbor, MI 48104 Map/Driving Directions

Phone: (734)769-0041

Hours: 8:00-11:00pm
Cost: $25/person

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2/14/2009
VALENTINE'S DAY STAR PARTY
Come as a pair or come on your own to a special Star Party with the University Lowbrow Astronomers. They will bring telescopes and set up for guided viewing of the night sky. Advance reservations required.

Matthaei Botanical Gardens 1800 N. Dixboro Rd Ann Arbor, MI 48104 Map/Driving Directions

Phone: (734)647-7600

Hours: 7:00-8:30pm
Cost: $5

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2/15/2009 (Huron Valley Railroad Historical Society)
39TH ANNUAL TRAIN SHOW AND SALE
The Ann Arbor Model Railroad Club is having their annual train show. The show will include over 400 tables, operating layouts, and much more.

The Saline Middle School 7190 N. Maple Rd Saline, MI 48176 Map/Driving Directions

Hours: 10am-4pm
Cost: $6

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2/19/2009
WHO YOU CALLING A CREAMPUFF?
Ever wonder how to make those tender hollow little cream puff shells? Well join us to find out! Learn the history and basic techniques of creating sweet and savory pastries from pate a choux (pot-a-shoo) dough. You will make your own dough and create éclairs, cream puffs, and savory creations to take home. We’ll also make pastry cream, whipped cream, and chocolate ganache in class to fill your puffs.

Zingerman's Bakehouse 3711 Plaza Dr. Ann Arbor, MI 48108 Map/Driving Directions

Phone: (734)761-7255

Hours: 5:30pm-9:30pm
Cost: $100

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2/20/2009
ARTINI MARTINI CRAWL 2009
In celebration of its 100th anniversary, the Ann Arbor Art Center has invited the city's most creative restaurants to develop commemorative martinis.

Ann Arbor Art Center 117 W. Liberty Ann Arbor, MI 48104 Map/Driving Directions

For more information, click here

Hours: 6:00pm
Cost: $35 early bird, $40 after February 6

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2/24/2009
ROYAL CELEBRATION AND CASINO BALL BENEFIT
The Quarter Bistro and Tavern will host its First Annual Royal Celebration to benefit Great Lakes Rabbit Sanctuary. The Quarter will transform into Ann Arbor's own French Quarter with live blues music, festive masks, beads and a speak easy casino.

Quarter Bistro and Tavern 300 S. Maple Ann Arbor, MI 48104 Map/Driving Directions

Phone: (734)929-9200

Hours: 4:00pm-Midnight
Cost: TBA

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1/31/2009 - 7/5/2009
TRAVELING EXHIBITION FROM NASA
This multi-media, interactive travling exhibition from NASA explores the extraordinary discoveries made by the Hubble Space Telescope, which will be 19 years old in April 2009.

Exhibit Museum of Natural History 1109 Geddes Ave Ann Arbor, MI 48104 Map/Driving Directions

Hours: Mon.-Sat. 9:00am-5:00pm, Sun 12:00pm-5:00pm
Cost: FREE

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Above was a sampling of the activities occurring in our community during the month of November. More than 56 events are planned in the Ann Arbor area this month. There are many interesting events from science exhibits for adults and children alike, to cooking classes and musical theatre. Please be sure to check out one of the many Valentine's Day events being held next week and show your sweetie a good time.

To view the Ann Arbor Area Convention and Visitors Bureau,
click here and choose your own criteria and dates.

Click here to search all Ann Arbor area Michigan homes
and condos with pictures and tours - FREE!

Really encouraging news regarding Michigan's part in the Recovery and Reinvestment Act. The state has received around $5.2 billion in stimulus funds which has so far helped create 22,000 new or saved jobs! This is great news! The state now ranks number 9 in the nation for jobs created or saved due to the act.

It is clear that the worst of the recession is over. Lawrence Yun the Chief Economist for the National Association of Realtors even came to Michigan a few months back to talk about the Real Estate Market and the economy. Things were starting to move back then and now with the influx of first time homebuyers purchasing properties and the effect of the stimulus money is being felt. (Keep track of Michigan on the government recovery website)

The stimulus money is also being funneled into other areas and not just being used for job creation, including tax cuts for residents and small businesses, weatherization projects, college tuition grants, unemployment insurance benefits and plugging the deficit in the state budget.

This is definitely exciting news for the state and for the region - no wonder Ann Arbor is a top relocation destination worldwide!

Click here to search Ann Arbor Real Estate using our complimentary Ann Arbor Real Estate MLS Search service. Alternatively please contact Kathy Toth and the team if you need more specific assistance in your Ann Arbor Real Estate needs.

www.KathyToth.com
Keller Williams Realty

Traver Lakes in northeast Ann Arbor Michigan is a great community!

This great condominum based development was constructed back in 1973 -1979 and consists of 88 units with maintenence fees of $277. Residents of the desirable units, due to their proximity to downtown Ann Arbor, pay Ann Arbor taxes and their children attend Ann Arbor schools. The units range in size from 2-4 bedrooms, 1420-2100 square feet and 1-4 bathrooms.

The community offers all the amenities that Ann Arbor offers and is close to the University of Michigan and its downtown campus. The units are built around small ponds and creeks that feature walking trails around the development. Garage parking is available, and a clubhouse, outdoor pool, & tennis court are maintained for recreation. This makes Traver Lakes the ideal community to relocate to in Ann Arbor!

We have a listing at 2515 Meade Ct, for sale at present in the community. You can view more on this great 3 bedroom, 2.5 bathroom property here.

For more on the community association you can view their master documents here.

Here is an aerial shot of the community:

Remember if you wish to purchase a home and if your are a first time homebuyer there is still time to be eligble for the tax credit!

Click here to search Ann Arbor Real Estate using our complimentary Ann Arbor Real Estate MLS Search service. Alternatively please contact Kathy Toth and the team if you need more specific assistance in your Ann Arbor Real Estate needs.

Before jumping into market data, click on picture for Chelsea, Michigan Tour.

As of September 30th, there were 162 active Chelsea homes down from 172 active homes for sale last month: ranging from 1 bedrooms to 6, 1 bathrooms to 7 and priced from $65,000 to $995,000. The average asking list price per square foot was $129.77 down from $137.41 last month. There have been 99 homes sold in Chelsea this year ranging in bedrooms from 1 to 5 and bathrooms from 1 to 6. The largest home sold was 3,800 square feet down to the smallest at 600 square feet. The average list price of the homes that sold in 2009 was $189,904 and the average sold price was $179,684. This represents an average annual sold price per square foot of $97.40. The sellers got an average of 94% of asking price this year. The Chelsea Real Estate Market from October 06 to September 09 is graphed below with the wide sold price swings displayed. September Chelsea sales data is represented by the Ann Arbor Area Board as dipping from last month shown by the yellow line below.

The chart below shows that there is about a 7 month supply of homes for sale in Chelsea, Michigan, so we are still in a buyers market and may be stabilizing unless we see a rash of foreclosure homes hit the market. The inventory under $200,000 is shrinking and we are seeing multiple offers. There is still an abundance of choice, low interest rates and great prices.

	JAN	FEB	MAR	APRIL	MAY	JUNE	JULY	AUG	SEP
Listings	174	115	148	161	177	148	169	172	162
Under Contract	7	5	8	14	12	16	18	9	8
Sales Past 12 Months	304	328	290	295	287	274	279	273	291
Absorption Rate/	25.3	27.3	24.2	24.6	23.9	22.8	23.3	22.8	24.3
Months Supply	6.9	4.2	6.1	6.5	7.4	6.5	7.3	7.6	6.7

Other charts below show the trends over the last 12 months. The first chart - Chelsea: Median Price (FS, Sold) shows home prices listed are up 7% and sold prices are down by 9% comparing September 08 to September 09 with trend lines showing a slight price increase over the last 12 months.

Chart 2 - Chelsea: Supply & Demand - # Units (FS, UC, Sold) below shows that units for sale from September 08 to September 09 are up 25% and sold units are down 9%. At least the number of active homes for sale is being reduced somewhat indicating we are on the way to stabilizing.

There is still an abundance of choice, low interest rates and great prices. If you know any one who is a first time home buyer looking to use the first time home buyer tax credit, time is running out to ensure closing by November 30th, 2009. Le us know you if are coming to our home buyer class this month: 734-845-6542.

Want to know what your Ann Arbor Area home is worth?