Tim and Pam Cash - Clarksville TN Real Estate Professionals

Great News on the New Tax Credit. The House passed the unemployment extension bill today after Senate did yesterday which includes the extension and expansion of the tax credit. The President signed the bill today! The tax credit provision remains the same.

• First-time home buyers will continue at $8,000
• Tax credit for "move up" purchasers will be up to $6,500
• Must have used previous home as a principal residence for 5 consecutive years of the previous 8.
• Income limits increased and are the same for first-time and "move up" purchasers: $125,000 for single filers/$225,000 for joint filers
• Limitation on eligible home prices has been increased to $800,000
• Time Frame: December 1, 2009 to April 30, 2010 plus 60 day extension if binding contract is in place by April 30, 2010
• Anti-fraud measures have been added

Below are the NAR Frequently Asked Questions in regards to the Home buyer Tax Credit Changes:

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 first time home buyer 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 first time home-buyer. 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 fellow is storing up for the winter months. We gave up trying to keep them out of the bird feeders a while back.

Clarksville and surrounding area Real Estate Professionals, please join Pam Cash and Lynnette Estes for TWO Agent Open Houses.

Pam will be serving the main course - her famous pulled pork and Lynnette will treat you to a delicious dessert.

When: 29 October 2009

Time: 11 to 1

Directions: 41-A Bypass to Hwy 12, take a left onto Shady Grove Rd, left onto Brookhaven Ter & an immediate right onto Tannahill Way. Homes are across the street from one another for added convenience.

We hope that you can make the time to come view these two properties and visit! We look forward to seeing you.

1371 Tannahill Way: Beautiful open floor plan. Plantation blinds throughout. Closet space galore. Jacuzzi tub in master with separate tiled shower. Tiled backsplsh in Kitchen. Just a few steps to the HUGE bonus room. Large garage facing rear! Large front porch and great entertaining area in back. Small pond.

1374 Tannahill Way: Living Room with fireplace, dining room with vaulted ceiling, eat-in kitchen with breakfast bar. Huge Master Suite with beautiful bathroom. Bonus room over garage. Oversized deck with built-in fire pit.

When shopping for major purchases are you more of an impulse buyer or one who conducts hours, days, weeks and even months of research to get the best value or what is the right 'fit' for you (and your Family)?

I must admit that over the years my tactic has moved from impulse to massive research, especially when it comes to major purchases ($1000 or more in my mind). Pamela Ann will be quick to say that is because I have made some bad purchases in the past due to my impulsiveness and impatience (1988 Mustang GT 5.0 Convertible quickly gets brought up..)

My latest venture is upgrading my road bicycle as I have found a new hobby that is both enjoyable, addictive, and good for you (hard to find that combination!). Anyhow, 15 or 20 years ago it would have been more difficult to conduct any reasonable research when it comes to durable goods. With the information highway one might say that now there is information overload and I can certainly attest to that.

Being a Realtor in Clarksville TN, I do my fair share of research via the Internet searching for Buyer Clients and Prospects in the Clarksville TN Real Estate Market. I find this both challenging and enjoyable as there is nothing better than helping clients to find that perfect home. So it is safe to say that the same dedication I place into research for my Families major purchases.

I must give credit where credit is due. In my couple of months of research Bikes and Moorein Hopkinsville Kentucky has went above and beyond in assisting me in trying to find the best bike for the money. In specific, Jason Whitman and Tim Moore. Though I have not made a decision on which direction I am going to go and am actually thinking about waiting a bit longer, I must say that their assistance has been greatly appreciated.

Being in sales myself, I can appreciate the dedication that Bikes and Moore have put into assisting me in my search. Many times this is overlooked much like when we as Realtors work diligently to assist a prospect in buying or selling real estate. Only about 5% of prospects in Real Estate actually become clients and I am sure that the number is close to the same in many other major purchases (again for me a major purchase is $1,000 or more).

So, in the end, I continue to research and continue to debate what is the best long term for me with respect to this major purchase. I know there is such a thing as TOO MUCH RESEARCH but I just can't help myself - I am anal like that I suppose.

Just in case you are wondering, here are the bikes I am looking at - feel free to add your comments:

Specialized Tarmac

Trek Madone

Raleigh Pretige

Jamis Xenith Pro (Can't stand the color!)

Neuvation Carbon SRAM Red