Kristal Perrone - Rochester New York-

The government enacted a benefit to help you make your first home purchase. The incentive gives first time home buyers a federal income tax credit up to $7,500. The tax credit is equal to 10% of the purchase price of the home up to $7,500. This is part of the "Housing and Economic Recovery Act of 2008″. It is a temporary, federal tax credit to provide incentive for first-time home buyers to purchase a home.

This tax credit is for first-time homebuyers who purchase a principal resident on or after April 8, 2008 and before July 1, 2009.

To be eligible, you can not have owned a primary home for the past three years, but may have owned a home prior to that.

To qualify for a full tax credit of $7,500 (or 10% of the cost of the home), someone filing their taxes as single, or head of household can earn no more than $75,000. Couples who file a joint return must earn $150,000 or less.

U.S. citizens and resident aliens who file income taxes qualify for the tax credit. Non-resident aliens are not eligible

Since the money must eventually be paid back, the tax credit essentially acts as a no-interest loan that reduces your tax liability for the year it is claimed. For instance, home buyers who close on a new home purchase in 2008 (after April 9) can claim the credit on their 2008 tax return. If their tax liability for the year is $5,000, applying the $7,500 tax credit would cover their tax bill and provide a $2,500 refund. Any taxpayers already due a refund would still receive the full amount, plus the $7,500 tax credit for buying a home.

First-time home buyers who claim the tax credit are expected to begin repayment starting in the second tax year after they close on their home and continue the pro-rata payback on their federal taxes for a 15-year period. For home buyers who claim the full $7,500 credit, the payments would amount to $500 a year.

If the buyer sells the home before the 15-year period, the remaining credit would be due from whatever profit was made on the sale. In cases where profits from the sale were less than what was owed for the credit repayment, the remainder would be forgiven.

If you have already closed on a new home since April 8, 2008, the tax credit is retroactive back to that date.

What do you have to do to claim the tax credit? If you meet the criteria, all you need to do is request the credit on either your 2008 or 2009 federal tax return.

You can learn more here: IRS 1st Time Home Buyer

Please note this is not tax advice. Please consult your accountant for the details of the bill and how it relates to your situation.

We have had a beautiful fall season here in Rochester. Last Friday it was in the 60's. Today is very cold, and snow is staying on the ground. If you haven't already, you may want to put a blanket, bottled water, a shovel, and a flashlight in the car. I learned that the hard way when I was younger. I got stuck in a snow bank at night. You just never know what could happen, and it's good to be prepared. Stay safe.

How To Prepare Your House To Sell

Recently I wrote a blog on 10 Questions To Ask Your Listing Agent

The next step is to get the house ready to put on the market. You don't want to just list it right? You want to sell it. Here are some helpful hints:

1. Disassociate Yourself From The Home.

Your home probably has a lot of great memories, and you are emotionally attached to it, but it's now time to look at it as a product to market. Pretend that you're a buyer looking at it. Would you like what you see? Does it look clean and bright, and well maintained?

2. De-Personalize

Pack up pictures of your family, so the new buyers can envision themselves living there. It's best not to let the buyers get distracted by wondering about you. They need to be able to picture themselves living there.

3. De-Clutter

Over the years we all tend to collect a lot of stuff. Make the house look uncluttered and clean by removing nick nacks, and extra stuff. Put items in boxes. You will need to pack anyway, so now is a good time to give the house an uncluttered look. Take everything off the front and top of the refrigerator. If you haven't used something in a year, you may want to consider donating it.

4. Create Great Curb Appeal

You only get one chance to make a first impression. Mow the lawn, rake the leaves, pull the weeds,sweep the front step, paint the front door, add a new handle if the old one is worn. Hang something welcoming on the front door, and replace the welcome mat.

5. Shampoo Rugs, Or Replace

You can rent a carpet cleaner or hire someone. This will give the house a cleaner smell, and the dirt will be gone. If the carpet is worn, or has stains that wont budge, consider replacing it with a neutral colored carpet.

6. Paint Where Needed

Do the walls look old and dingy? Is there paint chipping anywhere inside or out? Fresh paint is one of the best and cheapest things you can do to sell a house.

7. Repair Broken Items And Any Leaky Faucets.

If something is broken, it's best to fix it now. Replace any burned out light bulbs, torn screens, or cracked windows. Buyers want move in condition. They don't want to feel overwhelmed with a list of repairs.

8. Clean Out Closets And Cabinets.

Buyers will look in there to see how much space there is. So it's best to send a message that you are organized. Have the cans, and spices facing forward. Stack the pots neatly. Have all the clothes buttoned, and facing the same way. Line up the shoes, or use an organizer.

9. Make The Bathrooms Sparkle

Nothing says "gross" more than mold or mildew. Scrub and shine fixtures, walls, and floors. Remove personal items and keep them in a cabinet.

10. Consider A Pre-Inspection

A buyer will most likely hire their own inspector prior to closing, so it's best not to have any surprises later. If you do it ahead of time, you will have more time to make the necessary repairs.

These items may seem overwhelming at first, but you will want to have your home shown in the best light. You may also want to consider consulting a home stager if you can. Staged homes sell faster. If your home yells "I'm fresher, cleaner and better maintained!" it will stand out among the rest, and sell faster.

Pictures courtesy of www.publicdomainpictures.net

I found this article on the internet recently. I think it shows the importance of getting buyers pre-approved. http://wendylovesknitting.blogspot.com/2007/09/i-hate-realtors.html

I feel bad for this woman. I am always amazed when a buyers agent does not include a pre-approval letter with an offer. It's one of the main things I look for when reviewing an offer for a seller. It is also the first thing I suggest when a buyer contacts me.

I would be interested to hear your thoughts on this. Who is responsible? The listing agent? The buyers agent? The buyers?

10 Questions to Ask Your Listing Agent

1) Are you a real estate agent or a Realtor^®?

Real estate agents are not always Realtors^®. Realtors^® are members of the National Association of Realtors^®. Realtors^® are pledged to a strict Code of Ethics and Standards of Practice.

2) Are you a full time or part time agent?

It is important for your agent to respond quickly to customer inquiries about your home via email and cell phone. Part-time agents can be skilled marketers, but they have other commitments that can limit their responsiveness.

3) Is your company a full service brokerage?

One stop shopping is a great way to save time, and some full service brokerages offer discounts to their clients.

4.) How do you use technology in your business?

This is very important in this day and age. Approximately 80% of buyers start their home search online. Google the name of the agent. Do they have a strong internet presence? Do they know how to type, text, IM with younger clients? Do they have their own personal website?

5.) What are the average days on market right now for this area?

This will give you a better idea on the time frame involved in the selling process.

6.) Is there anything I could do to make this house sell faster?

It's always best to work as a team with your agent. Depending on finances, there are usually some things you could do to enhance the home.

7.) What type of marketing will you do?

There are many different ways to market a home. A sign in the front yard is not enough.

8.) How accessible are you?

You'll want to know what hours the agent can be reached at home, as well as the office and cell phone, and how often the agent checks messages. These issues are not only important to you, they're important to potential buyers and their agents.

9.) Has a client ever filed a complaint against you?

If you're uncomfortable asking, just check with the state licensing board.

10.) The main question you should ask yourself at the end of your meeting is "Would I feel comfortable using this person?"