Rob Gibson

HOPEFULLY THIS WILL CLEAR UP ANY CONFUSION…

With Congress reaching agreement on a $789 billion stimulus package for Americans and the President expected to sign it into law, the clock may be ticking for this year's home buyers and homeowners.

The package contains two benefits related to housing.

The first provision is fairly well-known. It gives first-time home buyers an $8,000 tax credit provided they purchase a home between January 1, 2009 and August 31, 2009.

This is a true tax credit.

To reduce misuse and abuse, however, the $8,000 credit is contingent on home buyers holding property for at least 3 years. If the home is sold in fewer than 3 years, the tax credit must be repaid to the government. It's also worth noting that the date range applies closings and not sales agreements.

Closings must occur within these 8 months to be eligible.

A second noteworthy feature in the package is that the stimulus package gives existing homeowners incentive to "green" their homes. With available tax credits for energy-efficient windows and doors, furnaces and insulation, homeowners can claim larger tax deductions based on home improvement, up to $1,500.

But, just because the government provides housing-related tax benefits doesn't mean you should just act on them blindly. Tax liability is a highly individual item and you may be ineligible for any number of reasons. Be sure to discuss your plans with a qualified accountant before committing to a plan.

PLEASE CONTACT YOUR TAX PROFESSIONAL FOR MORE INFO.

How To Sell Your Home For 40% More, 17% Faster This Spring

Posted: 30 Jan 2009 10:46 AM CST

Super Bowl Weekend traditionally marks the start of the Spring Buying Season in real estate. Anecdotally, real estate agents will tell you that buyer activity tends to tick higher at this time of the year.

Meanwhile, with mortgage rates still trolling near all-time lows and Congress debating a first-time homebuyer tax credit, 2009 may bring out even more buyers than we've seen in the past.

Just having your home on the market may not be enough to attract an offer, though -- the home has to have appeal. That brings us to home staging -- the process by which a homeowner re-organizes and re-presents his home to appeal to as many potential buyers as possible.

Home staging is part-science, part-art, and part-psychology. Homebuyers tend to judge homes within the first 8 seconds of seeing them so making a quality first impression can mean the difference between getting multiple bids, and just getting a lot of foot traffic.

The 4-minute video gives some quick-and-easy tips, including:

• Create more light in the home
• Clean up the closets and thin them out
• Remove the clutter from every room in the house

Even though home inventories are falling, supplies are still higher than in previous years. Home sellers wanting to stand out in a crowd may want to consider staging their homes to help them sell more quickly.

Staged homes sell for as much as 17% more money and as much as 40% faster than non-staged ones.

The facts about down payments. Responding to misinformation in the media and blogs recently about the required size of a down payment for a mortgage in today’s market, NAR issued these facts:

• An individual may be required to put down 20 percent based on that person’s financial situation, but that is not an across-the-board requirement for all borrowers.

• A borrower who puts down less than 20 percent is required to obtain mortgage insurance.

• Even in a declining market, a borrower is required to make at least a 5 or 10 percent down payment.

• FHA requires a 3.5 percent down payment by borrowers, so long as they meet a 31 percent housing cost-to-income ratio. In other words, anyone who stays within their budget and who can afford a 3.5 percent down payment (even with family help) can become a homeowner.

The nation's real estate market is on the brink of slow, but steady improvement! In an attempt to propel the market back to regular activity, the government has issued a tax credit that will act as a catalyst for housing recovery. And everything starts with the first-time homebuyer!

The Housing and Economic Recovery Act of 2008 issued a First-time Homebuyer Tax Credit for individuals who have purchased or plan on purchasing a home between April 9, 2008 and July 1, 2009. Tax credits have been an incentive for first-time Washington, D.C. homebuyers for a while, but this stimulus is now being offered nationwide. In terms of eligibility, the NAR states, "If you (and your spouse, if married) have not owned your principle residence for a 3-year period before your purchase, and you have never taken advantage of the DC first-time homebuyer credit, you qualify as a first-time homebuyer."

The Homebuyer Tax Credit is fairly substantial-it's equal to 10 percent of the purchase price of your home up to $7,500. As a tax credit, this amount will be deducted from the total amount of taxes you owe. Acting as something similar to an interest-free loan, this credit is expected to be repaid over a set period of time. For more information on the Homebuyer Tax Credit, click here. If you're interested in participating in this limited-time program, contact a certified agent today!