First-time Home Buyer Tax Credit Extended and Expanded
Yesterday the president signed a billed that extended the First-time Home Buyer Tax Credit. This bill also expanded the credit beyond just first-time buyers.
The big differences between the original tax credit and the new and improved version are that now current homeowners are eligible for a $6,500 tax credit, the income limits to qualify have been raised, and the new expiration date is April 30, 2010 but if one has a binding contract by the deadline they can still get the credit if they close the sale before July 1, 2010.
Below is a chart provided by the National Association of Realtors® comparing the original and the new versions of the tax credit.
|
FEATURE |
Jan 1 - November 30, 2009 Rules as enacted February 2009 |
November 7 - April 30, 2010 Rules as enacted November 2009 |
|
First-time Buyer Amount of Credit |
$8000 ($4000 married filing separate) |
$8000 ($4000 married filing separate) |
|
First-time Buyer Definition for Eligibility |
May not have had an interest in a principal residence for 3 years prior to purchase |
Same |
|
Current Homeowner Amount of Credit |
No Provision |
$6500 ($3250 married filing separate) |
|
Effective Date Current Owner |
No Provision |
November 7, 2009 |
|
Current Homeowner Definition for Eligibility |
No Provision |
Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years |
|
Termination of Credit |
Purchases after November 30, 2009. (Becomes April 30, 2010 on Date of Enactment.) |
Purchases after April 30, 2010 |
|
Binding Contract Rule |
None |
So long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close. |
|
Income Limits (Note: Increased income limits are effective as of date of enactment of bill) |
$75,000 - single, $150,000 - married, Additional $20,000 phase out |
$125,000 - single, $225,000 - married, Additional $20,000 phase out |
|
Limitation on Cost of Purchased Home |
None |
$800,000 November 7, 2009 |
|
Purchase by a Dependent |
No Provision |
Ineligible November 7, 2009 |
|
Anti-fraud Rule |
None |
Purchaser must attach documentation of purchase to tax return |
How will this affect the Omaha real estate market? Was this tax credit a good idea? Stay tuned for my follow-up blog post.
The numbers for the Omaha real estate market are in for the month of October and they are a little disappointing. Based on the rate of sales there is currently just over a six month supply of homes to sell. This is the largest supply of homes since February 2009.
|
Total Number For Sale |
5276 |
|
Total Number of Accepted Offers |
868 |
|
Total Number of Closed Sales |
810 |
|
|
|
|
% of sellers that accepted an offer |
16.45% |
|
Absorption rate in months |
6.08 |
Much of this is due to the looming expiration of the $8,000 First Time Home Buyers Tax Credit. If this were to be extending, as some in Congress are proposing, I expect that sales would pick up a bit.
To compare this to how the Omaha market fared in September, visit Omaha Real Estate Market - September, 2009.
HAPPY HALLOWEEN! With the end of the month here, it's time for my monthly blog summary of new homes for sale. If you or someone you know is looking for a home, check these out.
3318 S 19 St in the Deer Park subdivision of Omaha
5269 N 111 Cir in the Escalante Hills Replat II
2808 N 170 Cir in the Manchester Park subdivision of Omaha
9235 Tomahawk Blvd in the Tomahawk Hills subdivision of Omaha
5718 N 127 St in the Winchester Heights subdivision of Omaha
413 Bellevue Blvd in the Hillcrest subdivision of Bellevue
Also this month I did a featured blog on the arboretum that OPPD established at 108th & Blondo. Here it is again in case you missed it.
The sale of a property I was representing in the Southern Oaks subdivision of Bellevue at 2721 Coffey Ave closed and the buyer was represented by Lisa.
Working with a good agent makes my job much easier. Lisa did a great job and made the sale very smooth.
I hope we can do more business together in the future.
The sale of my listing at 10906 Black St in the Deerwood subdivision of Omaha closed and the buyer was represented by Ron.
Working with a good agent makes my job much easier. It is time consuming selling over 50 homes a year, but having a good agent on the other side of a sale makes closing a deal much easier.
Ron was a pleasure to work with.
 |
|
|
Comprehensive Marketing and Outstanding Service for home sellers in Omaha and surrounding areas of Nebraska! www.TrummTeam.com - (402) 943-9494
I am a Realtor with Alliance Real Estate in Omaha, NE. With over 50 Omaha home sales a year, I am not only Alliance's top agent but also one of the top real estate agents in Omaha and in the nation. I have built my business by working hard for my clients and by treating them with honesty and fairness. My goal is provide comprehensive marketing and outstanding service at a reasonable price. I conduct business in Douglas and Sarpy county including Omaha, Bellevue, Elkhorn, Gretna, Papillion, Ralston, La Vista, Millard, and Bennington.
Your Home Sold within 120 Days
or I will Buy It!
For details visit www.TrummTeam.com
Save $5,000 when You Purchase a Home
or We will Pay You $1,000!
For details visit www.TrummTeam.com
For more information on my services, visit www.TrummTeam.com.
Free to Consumers:
Search the MLS for Omaha Homes for Sale
Free Information on Buying or Selling Real Estate in Omaha
Achievements
With over 50 sales per year, I am in the top 2% of Realtors® nationwide.
Agent of the Year, Alliance Real Estate 2008
Agent of the Year, Alliance Real Estate 2007
Agent of the Year, Alliance Real Estate 2006
Agent of the Year, Alliance Real Estate 2005
In 2008, completed 57 transactions with an average market time of 44 days.
In 2007, completed 52 transactions with an average market time of 41 days.
In 2006, completed 51 transactions with an average market time of 39 days.
In 2005, completed 56 transactions with an average market time of 43 days.
Professional Organizations
National Association of Realtors®
Nebraska Realtors® Association
Omaha Area Board of Realtors®
Great Plains Multiple Listing Service
Nebraska Notary Public
I initially started in real estate as an investor. Once I learned everything I could on real estate investing it only seemed natural to become a Realtor to assist others in the Omaha area with buying and selling real estate. I still actively invest in real estate and own seven investment properties. Buyers and sellers that utilize my services can have great confidence in my ability because I actually put my money on the line. In my opinion, hiring a Realtor that does not invest in real estate is like hiring a stock broker that does not invest in the stock market.
While showing homes to buyers is definitely seen as the more glamorous side of real estate, it is also the easier side of the business. My area of focus is working with sellers. I enjoy the challenges of selling a home - everything from proper pricing and positioning of a home to expanding my marketing and networking with other Realtors.
Want more information on Omaha? Check out these sites.
www.Omaha.com
Discover Omaha
Omaha Localism
Sarpy County Assessor
Douglas County Real Estate Valuation
Douglas County Treasurers Office
Omaha Jobs
From a letter sent by an out of state seller who is also a Realtor:
Thanks for all your help getting both of my homes sold. I feel lucky to have found you to handle these transactions. You truly have been professional, pro-active, and easy to work with. I'm even incorporating some of your techniques into my own business.
From feedback surveys sent by my broker to my clients:
I always felt like I knew what was going on with constant updates & Wednesday check-ins. Fast sale was nice of course.
We needed a quick sale and that is exactly what you delivered. Thanks!
Thank you for helping us sell our house and for a smooth transaction. It was a very stressful 2 months but Troy kept us calm and helped us make the necessary adjustments to get that offer! I will definitely spread the word about Alliance & Troy!
Troy is the definition of Professional.
I really appreciated the service I got from Troy. My home was less than $100,000. He had several listings over $150,000 on up. I never felt that I was slighted by Troy because my house was not as valuable as his other homes.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved
