Congress extends homebuyer credit
President Obama is expected to sign a bill passed by Congress today extending and expanding the first-time homebuyer tax credit to homes under contract before May 1.
The credit, equal to 10 percent of a home's purchase price, remains capped at $8,000 for first-time homebuyers, but income limits have been raised.
Congress also approved an expansion of the credit to allow homeowners who have been in a principal residence for at least five of the last eight years to claim a tax credit of up to $6,500 if they sell that home and buy another.
That will provide an incentive not only for entry level, but move-up buyers -- a goal supported by real estate industry groups.
An extension of the existing tax credit -- currently set to expire at the end of the month -- was controversial, as it will cost an estimated $10.8 billion over 10 years. Critics said most of those who have claimed it would have bought a home anyway.
Earlier this year, former real estate broker Sen. Johnny Isakson, R-Ga., introduced a standalone bill that would have raised the ceiling on the tax credit to $15,000 and lifted first-time homebuyer and income restrictions.
In the end, lawmakers who supported an extension of the tax credit were forced to add it as an amendment to a bill extending federal unemployment benefits, HR 3548, to gain passage.
The bill was amended in the Senate last week and approved Wednesday in a unanimous 98-0 vote.
House lawmakers passed the bill today in a 403-12 vote, with all 12 no votes cast by Republicans.
The Obama administration had previously indicated it would support the more limited extension of the homebuyer tax credit included in HR 3548 (see story).
Although income limits for claiming the credit will be raised from $75,000 to $125,000 for individuals and from $125,000 to $225,000 for couples, homes purchases exceeding $800,000 will not be eligible.
Real estate industry groups hailed the extension of the credit as a necessary step to sustain a fragile recovery in housing markets.
"At a time when we are finally starting to see some signs of life in the housing and mortgage markets, extending and expanding the homebuyer tax credit is a critical step to keeping the momentum," Robert E. Story Jr., chairman of the Mortgage Bankers Association, said in a statement.
I know this is good for us in the industry but will it really help the ecomony and create jobs?
Richard Lecinski
Long Realty
Tucson, Az
Give Our Troops a Little Bit of Christmas Cheer!
The Casas Adobes office of Long Realty is collecting comforts from home to sent to our troops just in time for Christmas. Deadline is Nov. 18th! Call Diane at x5902 for a list of items needed or click on the link here:
Richard Lecinski
Long Realty Company
Tucson - Oro Valley Arizona
http://rlecinski.longrealty.com
520-834-4663
I know other Realtors across the country are doing much the same.
Real Estate Tips for Seniors
Richard Lecinski - Long Realty
Oro Valley - Tucson Arizona
When selecting an agent, discuss the percentages that the agent will charge you for selling your property. If an agent tells you he/she is charging you a "standard" percentage rate for services, be weary, this is false. A percentage rate is negotiable by federal law. The length of the contract in which you list with the agent is negotiable as well. Pick a real estate agent who is willing to show you a marketing plan. A solid marketing plan demonstrates a commitment and willingness that will be instrumental in selling your property in a timely manner, eliminating unnecessary expenses related to utilities, real estate taxes, interest expense and lost interest income. A marketing plan should include advertising in a variety of venues, (for example flyers, the newspaper, open houses, the Internet). The property should always be listed in the local MLS, which is the industry standard publication that is utilized by all agents. Although a real estate agent is not a financial advisor, attorney or tax consultant, a good agent should possess basic knowledge in these matters. The agent should possess enough knowledge to let you know which expert you need to consult with should any issues or questions arise related to those topics.
Following these guidelines will go a long way towards creating a positive experience when buying or selling property. As an older American you deserve peace of mind during this time of transition.
Email: rlecinski@longrealty.com
Finding a real estate agent who understands the unique needs of older Americans is a crucial component in having a successful real estate transaction. Life changing events such as the passing of a loved one, illness, downsizing, and/or retirement are a unique set of issues that often accompany the buying and selling of property for older Americans.
Because this is an important and life changing decision, do not just pick a real estate agent out of the phone book, and/or stick with the first agent you meet - interview at least two agents. Make sure that you feel comfortable with the agent you will be working with. In the interview question the agents about their experience in handling clients dealing with the issues that you are dealing with. Try to get a sense of whether or not the agent would be sensitive to your needs; and make sure the agent is willing to deal with other family members if necessary.
Richard Lecinski
Long Realty Company
Tucson - Oro Valley - Vail - Marana Arizona
520-834-4663
http://rlecinski.longrealty.com
USDA Rural Housing Program
Loan Features
Best For
Many properties in the Tucson area will qualify for this type of loan
Rich lecinski
520-834-4663
Long Realty Company
Virtual Home Finder
http://rlecinski.longrealty.com
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Real estate services in the Oro Valley, Greater Tucson, Vail and Marana areas. I work with a team and we can cover much of Southern Arizona including Rio Rico and Nogales. My phone is always on.
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