The Maynes Team Philadelphia Real Estate Blog

President Obama has signed legislation into law that extends the $8000 tax credit for first-time home buyers and also offers a $6500 tax credit for repeat buyers!

In order to qualify you must have a contract to purchase a home by April 30, 2010 and you must make settlement on your new home by June 30, 2010.

Here are the main highlights of the program:

• $8,000 for first-timers (have not owned a primary residence during the previous 3 years)
• $6,500 for repeat buyers (have lived in their current residence for five consecutive years out of the last eight year)
• The Income limits for the tax credit were also increased significantly. Now, individual tax filers making no more than $125,000 and joint filers making no more than $225,000 could take the full credit. The credit would decrease in value for people making more than those amounts, phasing out completely after $145,000 for singles and $245,000 for couples.
• Only homes sold at $800,000 or below qualify.

Married couples can't qualify for the first-time credit unless both of them are first-timers.

You claim the credit when you file your taxes for 2009.

If you are a first-time buyer who typically gets $1500 back from the government when you file your taxes, you could now be getting another $8,000. That would be $9,500 back to you on your tax return!

This is in addition to the other tax benefits that come with purchasing and owning a home!

Please contact George Maynes and The Maynes Team if you have any questions about this tax credit or if you would like any assistance with buying a home in the Philadelphia Area.

Visit www.TheMaynesTeam.com for more info on our services and the home buying process.

The current $8000 tax credit for first-time home buyers is scheduled to expire on November 30, 2009. That means you have to make settlement on your first home by this date in order to qualify for the tax credit.

There are several different bills being presented in Congress that propose to extend this tax credit into 2010. Some of the bills propose increasing the credit to $15,000 and even making all home buyers eligible not just first-time buyers.

Most people in the real estate business believe the tax credit needs to be extended. Real estate professionals would also welcome an increase in the amount of the tax credit along with opening up the eligibility to all home buyers.

As you would imagine, there is a huge debate in Washington, DC and around the country on if the tax credit should be extended. Here are some of the agreements for and against the tax credit and its extension.

Pros

•The tax credit provides home buyers with some extra cash to help ease the cost of home ownership. Many buyers especially first-time buyers spend a significant amount of their savings on closing cost and moving expenses. The tax credit helps buyers recover these expenses. It also provides cash they may need for some home improvements, appliances, and other living expenses.

•The tax credit helps eliminate the "fear factor" of buying your first home. Buyers feel more comfortable buying a home when they know they will have extra money available if a repair is needed or an unexpected expense arises.

•The tax credit increases the number of home sales which in turn decreases inventory of homes on the market. This helps bring the real estate market into balance so that it can move forward with a self-sustaining recovery.

•Each sale provides an economic boast. Home sales create jobs. Many home buyers and sellers hire appraisers, inspectors, electricians, plumbers, construction workers, movers, etc. Buyers also make other related purchases such as new carpets, new appliances, new furniture, landscaping, etc.

Cons

•Some estimate that only 15 percent of the homebuyers receiving an $8,000 tax credit would not have bought a home without it.

•Although the tax credit has a positive effect on the real estate market, at some point the government needs to let the market stand on its own.

•People missing mortgage payments and falling into foreclosure are the real problems.

•Buyers may not spend tax credit so their specific credit will not help create jobs to stimulate the economy.

What do you think? Do the pros outweigh the cons? Should the tax credit be extended? Should the tax credit be increases to $15,000? And finally, should the tax credit be available for all buyers not just first-time buyers?

Price the Home Right

•A house priced at just below market value piques the interest of real estate professionals and buyers•An overpriced home turns away potential buyers
•If your home is priced too high, interested buyers may never even tour your listing.
•It is true that you can always drop the price, but the first 30 days are the most critical. That is when interest is the highest, and it can be difficult to recapture people's interest later on.
•The longer the property is on the market, the fewer the prospects.

Showcase Your Home

Remember, you only get one chance to make a first impression.

•Be sure your home is clean and has a welcoming smell
•Get rid of any clutter.
•Touch up the paint where needed.
•Clean the carpet.
•Consider some minor home improvements
•Make any repairs that are needed

Curb Appeal

Don't overlook the outside of your property. You don't want a buyer to rule out your home based on the outside appearance.

•The lawn should be trimmed, bushes and shrubs pruned, and leaves raked.
•The front of the house needs a clean, fresh appearance.
•Even the mailbox needs to be attractive and functional.
•Put away bicycles, toys, and other items that may make your property seem cluttered.

Offer Incentives

Offering incentives can be just the drive a potential buyer needs to select your property over competition

•Include the major appliances with the sale.
•Provide an allowance for worn carpet or paint
•You could pay for a 1 year home warranty
•Offer to pay some of the buyer's closing costs
•Consider offering a buyer agent bonus to motivate other real estate agents to present your home to their buyers.

Making the right moves at the beginning of your home selling process can give you the upper-hand you'll need in today's competitive market.

Harry Kalas' Hall of Fame rancher in Media. Listed at $625000.

Expanded Ranch on 2 acres bordering Ridley Creek State Park on quiet cul-de-sac street. Expansive living areas on 2 floors w/~3800 interior sq feet. Master Bedrm & Bath on Main Level. Separate Living Quarters for In-Laws/Family/Nanny. 1st Level: Entry foyer; modern Kit w/Granite counters, custom cabinets, butcher blck center island, double wall ovens, cooktop, pantry; Master Bedrm & Bath; 2 Add'l Bedrms; updated Hall BA; Office, Fam Rm w/Fplace, Din Rm w/built-in china cabinets, Liv Rm w/window seat, built-ins. Lower Level: level entries; full Kit w/Refrig/Dshwsher; Bedroom w/WIC; Great Rm; Fam Rm w/ "Kalas's Korner" Bar; 2 Fireplaces; 2 add'l sleeping areas; full BA w/soaking Tub/shower. Custom lead-glass windows, hardwoods, newer Roof/C/A, repl windows, upgraded electric, lighted lawns, gardens, hardscaping, heated walkway, new composite 3-Tier Deck, Patio, large yard & parking for 10 cars. Near downtown Media, excellent schools, major roadways, transportation, min to Phil Int'l Airport/Center City.

Ever dream of being on TV? I don't mean in the background of a news story. I mean being featured on a real TV show.

HGTV'S HOUSE HUNTERS IS CASTING IN PHILADELPHIA

HGTV's hit TV series, House Hunters, is looking for homebuyers and real estate agents who want to appear on the show!

House Hunters follows buyers and their agents on the hunt as they
find just the right house for them-and every story is different.

If you're an energetic and outgoing homebuyer, they would love to hear from you.

They are currently looking for homebuyers who are:

• Closing within the next 1-2 months, this includes buyers who
  are actively bidding on a home or newly under contract
• Fun, enthusiastic, and have a great story to tell
• Purchasing within a 30 minute drive of downtown Philadelphia

House Hunters airs weeknights at 9/8c on HGTV and is produced by
High Noon Entertainment. To learn more about the show visit
HGTV.com/HouseHunters

To apply: Email or Call George Maynes at George.Maynes@comcast.net. I will then email you an application with instructions.

I would like to get picked myself but I am still searching for the right buyer. Maybe we can be on the show together!