Paul Stillwaggon, Luxury New & Pre-Owned Homes in Central NJ

NAR Frequently Asked Questions

Homebuyer Tax Credit Changes
National Association of REALTORS® Government Affairs Division
500 New Jersey Avenue, NW, Washington DC, 20001

Here are some of the most 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 firsttime
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 phaseout
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 firsttime
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. Once the legislation has been signed, it will be as
if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30
(or July 1, worst case), the purchaser will be eligible for the credit

This 2 year old outstanding custom colonial built in 2007 must be seen to be appreciated. The gourmet Kitchen offers custom cherry cabinets, granite counter tops and a center island. The family room boasts a masonry wood burning fireplace that beacons all to come in an relax in front of the fire. On the second floor you will find 4 bedrooms, featuring a large master suite with large master bath with jacuzzi tub, walk in closet, plus 2nd floor laundry room and full hall bath.

531 Park Avenue

$775,000

Town: Berkeley Heights County: Union Style: Colonial Bedrooms: 4 Bathrooms: 2½ Area: 2600 sq.ft. Lot: 0.3 Acres Contact: Paul Stillwaggon (908) 310-1358 Visit Berkeley Heights Click Images to Enlarge
Delightful, Spacious and Welcoming Home!

First Floor Plans pdf version

Second Floor Plans pdf version

Kitchen

Kitchen into Family Room

Family Room

Foyer

Bedroom

Bedroom

Rear View

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For further information Phone: Paul Stillwaggon (908) 561-5492 Cell: (908) 310-1358

You can Email us at: njestates@gmail.com We are located at: 55 Stirling Road, Watchung, NJ 07069

It's more good news for the construction industry. McGraw-Hill Construction's 2010 Construction Outlook forecasts an increase in the level of construction starts in 2010 is expected to climb 11% to $466.2 billion, following the 25% decline predicted for 2009. McGraw's Outlook, a mainstay of business planning for construction and manufacturing executives, says the increase will result from improvement for housing from extremely low levels and broader expansion for public works.

	NJ Estates Real Estate Group Paul Stillwaggon November 2009 LINKING THE LATEST TECHNOLOGY TO OLD FASHIONED SERVICE Copyright © 2009 Realty Times All Rights Reserved.

"The U.S. construction market in 2010 will be helped by growth for several sectors, following three straight years of decline that brought total construction activity down 39% from its mid-decade peak," said Robert A. Murray, vice president of economic affairs for McGraw-Hill Construction. "The benefits from the stimulus act will broaden in scope, lifting not just highway construction but also environmental public works and several institutional structure types. With continued improvement expected for single family housing, after reaching bottom earlier this year, the overall level of construction activity should see moderate expansion in 2010." Highlights of the 2010 Construction Outlook include: Single family housing for 2010 will advance 32% in dollars, corresponding to a 30% increase in the number of units to 560,000 (McGraw-Hill Construction basis). Multifamily housing will improve 16% in dollars and 14% in units, after steep reductions in 2008 and 2009. Commercial buildings will drop 4% in dollars, following a steep 43% drop in 2009. The weak employment picture will further depress occupancies, making it even more difficult to justify new construction. Institutional buildings will begin to stabilize after losing momentum in 2009. Square footage will retreat another 2% after sliding 23% this year. The dollar amount of construction for this sector will edge up 1%, helped by a growing amount of energy-efficiency upgrades to federal buildings and continued strength for military buildings. Manufacturing buildings will drop 14% in dollars and 3% in square feet, hampered by the substantial amount of slack manufacturing capacity. Public works construction is expected to rise 14%, given more wide-ranging strength across all project types. Electric utility construction will slip 3%, continuing to settle back after a record high in 2008. The 2010 Construction Outlook was presented at the McGraw-Hill Construction Outlook Executive Conference in Washington, DC, which brought together top management from all parts of the construction industry including firms involved in building product manufacturing, architecture and design, contracting, engineering, industry associations and other industry professionals. At the event, Frank Giunta of Hill International and George Pierson of Parsons Brinckerhoff offered insights to an industry emerging from the crisis: "The stimulus funds are meant to be just that, a stimulus, not the be-all-end-all answer to infrastructure financing," said Frank J. Giunta, senior vice president and managing director of Hill International. "Both public and private sectors need to be innovative and rewrite the rules of project finance to address tremendous construction needs with minimal financing options." "The efforts of the federal agencies at transparency and their willingness to engage with private industry is refreshing," said George J. Pierson, chief operating officer, Parsons Brinckerhoff. "We have to work together to meet the challenges of infrastructure and this economy." Working together and meeting the needs of the real estate consumer will help the construction and building industries revitalize in 2010 and continue to grow years thereafter. [Note: For more information on the 2010 Outlook, go to www.mcgraw-hill.com.] Written by Peter L. Mosca November 4, 2009 Linking the latest technology to old fashion service. Our realtor's commitment, pride and extensive specialized knowledge has earned us a strong position in the market and we invite you to call NJ Estates Real Estate Group when buying or selling a home, @ (908) 561-5492. -- Contact Us - Back -

Paul Stillwaggon, For All Your Real Estate Needs Contact New Jersey Estates Real Estate Group E-mail: njestates@gmail.com Web: http://www.newjerseyestates.net 908-561-5492 (Paul S) 908-310-1358 (Cell) NJ Estates Real Estate Group Weichert Realtors 908-561-5492 55 Stirling Road, Watchung, N.J. 07069 Equal Housing Opportunity