About Outagamie County, WI

The U.S. Military, Armed Service, Intelligence Service and Foreign Service personnel received a bonus when the extension of the home buyers' tax credit was signed into law. The bonus is designed to benefit U.S. Military personnel on active duty and out of the U.S. for 90 days during any part of 2009. The enchantment will provide our Military personnel an additional year to buy their homes - their deadline is May 1, 2011.

The bonus provides another huge benefit, which is a waiver on the time of occupancy. Most home-buyers using the tax credit must use the home purchased as a principal residence for a period of at least three years or forfeit the entire credit. U. S. Military, Intelligence and Foreign Service Personnel will not be required to repay the credit should they find themselves selling their home as the result of new orders that require the relocation as the result of official military business.

Here is snapshot of the rules:

• A "first time home buyer" is defined as someone who has not owned a primary home in the last three years. If you are a "first-time home buyer", your tax credit will amount to 10% of the purchase price of your new home not to exceed $8,000.
  
• A "long-time resident" is defined as someone who has lived in the same primary home for 5 out of the past 8 years. If you are a "long-time resident", your tax credit will amount to 10% of the purchase price of your new home not to exceed $6,500.
  
• The tax credit does not need to be paid back if you continue living in the home as your primary residence for three years without selling it. If you sell the home in connection with government orders for official service, the credit does not need to be repaid even if you sell your home within the three year time frame.
  
• The home must be purchased for less than $800,000 before May 1, 2010. If you sign a binding contract to purchase a home before May 1st, you would need to close on the transaction before July 1, 2010. If you have served for at least 90 days of the year outside of the United States, you have until May 1, 2011 to purchase your home and receive the tax credit. In that case, if you sign a binding contract to purchase a home before May 1, 2011, you would need to close on the transaction before July 1, 2011.
  
• Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
  
• You cannot purchase the home from a related party like a spouse, direct ancestor, or direct lineal descendant (child or grandchild); however, you can still qualify for the credit if you purchase a property from siblings, nephews, nieces, and others.
  
• If you are married, both spousesmust qualify for the credit.
  
• If more than one unmarried individual is buying the property, the credit can be split up among all the individuals who qualify. However, the total credit taken cannot exceed $8,000 (or $6,500 for "long-time residents"). Alternatively, if only one of the unmarried buyers qualifies for the credit based on their income or past home ownership status, the individual who qualifies for the credit can claim the full credit.
  
• The credit applies even if you have co-signers on your mortgage loan.
  
• The credit applies to 1-4 unit homes as long as you live in one of the units as your primary residence - you could live in one unit and rent out the others.

How does the tax credit work?

A tax credit is similar to a gift certificate that you can use to pay your taxes - it reduces your income tax bill on a dollar for dollar basis. Imagine paying your bill at IRS Restaurant, and then later getting an IRS Restaurant gift certificate. Normally, you would need to go back to IRS Restaurant and buy more food in order to use your new gift certificate. But what if IRS Restaurant allowed you to just turn in your gift certificate for cash? That's how the home buyer tax credit works! All you need to do is file a form with the IRS after you buy your new home and they will send you a refund check for $8,000 (or $6,500) - just like the example of IRS Restaurant that allows you to exchange your gift certificate for cash! Remember though, you'll receive the $8,000 (or $6,500) from the IRS AFTER you purchase your new home, so you cannot use the funds to help with your down payment.

To ensure compliance with requirements imposed by the Internal Revenue Service, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, by any person for the purpose of (i) avoiding tax-related penalties or (ii) promoting, marketing or recommending to another person any transaction or matter addressed in this communication. I recommend that you consult with properly licensed legal, tax and investment adviser for specific details pertaining to your individual situation.

I hope you have found this information beneficial. If you would like more information about the home buyer tax credit or other recent updates to the mortgage and real estate markets, please feel free to give me a call, or simply shoot me an email. I am a VA Loan Specialists and am honored to help with the purchase of your new home!

Now is the perfect time to buy a home; there's a huge inventory of properties priced at levels not seen since 2004. Not to mention the extension of the first time home buyers tax credit (of up to $8,000), and the NEW repeat Buyers credit (up to $6,500).

For detailed information and answers to frequently asked questions check out this story: Hot Off The Press - Answers to Questions on the New and Expanded Tax Credit

It is important NOT to shoot from the hip and fire before you aim at your target..... get all the facts prior to entering into the market. Consult your local Real Estate Professional for specifics in your area. The burning question for many in the market for a great deal is - Can you ever really be confident you're getting a bargain?

Most homes sold within 3% of asking prices, but a good many sold for more than 10% below asking prices. How can you get a bargain on your dream home?

Here are five tips for getting a sweet deal:

1 - Find listings on the market for 90 days or more: Smart buyers have long known that if a home doesn't sell in three months, the listing becomes stale. The more deeply discounted homes were 83% more likely to have been listed 90 days or more.

2 - Bid low on a fixer-upper: Bargain sales were 73% more likely to have used "fixer-upper" or similar terms in listings and ads. People who sell homes before fixing them up are usually more concerned about an easy sale than the best price. That jives with a 2003 study by the National Association of Realtors, which found that, on average, fixer-uppers sell for 24% less than other homes.

Many discounted homes have sustained not just one or two but several price reductions: Heavily discounted homes are 28% more likely to have already been price-reduced. 56% of the biggest bargain homes, prices had been dropped at least twice before buyers made a bid. Once a seller lowers his asking price, he sends a signal to buyers that he is willing to accept further discounts in negotiations.

3 - Look for desperate flippers - Money for investors is becoming more difficult to come by, and many investors have purchased properties to flip on high interest rate and short term loans. Look for homes where the seller has been a resident for less than 5 years. Many of these people are willing to sell at a lower price.

4 - Skip remodeled properties - Newly remodeled homes still expect top dollar.

One more crucial tip!

5 - An expensive mortgage can easily wipe out any savings you achieve in price negotiations, so research scrupulously here, too. Make sure you consult and explore your options with a local mortgage professional that will provide you with a mortgage plan specific to your needs. There are different products available to you, so be sure to ask your expert about the various options available to you.

Happy House Hunting! We are Certified Mortgage Planning Specialists and are happy to assist you with your questions and provide you with options. We are connected to the local Real Estate Market and would love to provide you a referral to a local Real Estate Professional.

Listen Up! Now That The Ink Is Dry on the New and Expanded Tax Credit - Home Sellers and Buyers Prepare Yourselves For A New Wave of Action . . . .

Are you still in the fence about buying a new home, or selling your current home to move into that dream? Well, as can see by the passage of the new and improved home-buying bill; Congress wants to push you into the market with an expanded home buyer tax credit.

They sweetened the pie by expanding the program as follows; under the expanded program, homeowners no longer have to be first-time buyers and are now eligible for a tax credit of up to $6,500 if they purchase a new home. To qualify, current owners will need to have lived in their prior residence for five consecutive years out of the past eight years. Here is the all important detail . . . The credit would apply to home purchases under contract by April 30, 2010, as long as they close by June 30, 2010.

First-time buyers (and those who haven't owned a home in the last three years) will continue to be eligible for up to $8,000, with the same deadlines mentioned above.

As for income limits, the new credit would be available to individuals earning up to $125,000 or couples earning $250,000. That's up from $75,000 and $150,000, respectively, for the current tax credit. The credit can only be used on homes that cost $800,000 or less, and cannot be applied to vacation or second homes.

Here's what you need to know about the Extended and Expanded Home Buying Tax Credit:

Attention Sellers: More Buyers Expected -The new tax credit - coupled with low mortgage rates and the supply of affordability priced homes on the market - may give many people who had been a bit reluctant of buying that extra nudge to step into the market. And in contrast to the first-time home buyer credit, the new $6,500 credit is available to a larger part of the population, with higher incomes. Now that is great news for many.

Plan Out Your Timing Now - The legislation allows buyers to claim the credit if the home purchase is under contract by the end of April 2010, and closes by the end of June 2010. This may seem like a long time, but not in the world of home buying - New regulations and tougher qualifying criteria is causing delays not experienced in months and years past. In order to meet this deadline, consider from now until March your window to buy a house. Keep in mind that once you have an accepted offer, the closing process can take a while and can also be delayed for any number of reasons.

The Slow Months Won't Be As Slow -The renewed tax credit is obviously good news for buyers, and it is even better for sellers, especially Wisconsin sellers. As we all know, the real estate market is headed into what is traditionally the slowest months for real estate sales; Specifically here in Wisconsin, where the only thing that seems to move with urgency when the snow fly's, are the snow plows! It is often the case that sellers are advised that a home on the market between the months of October and April will probably get the least attention from buyers and attract lower offers than in busier periods. The credit is sure to renew interest in the market during the next 6 months -- and compel sellers to take advantage of an influx of buyers.

Already in a Deal? Check Your Status - Buyers who are smack in the middle of a transaction now or have already accepted a contract should pause and figure out if they can take advantage of the credit. The first thing they should do is call their real estate agent or mortgage broker to find out if this money would be available to them and how they can apply.

Happy buying and Selling - If you need any assistance, or have any questions, we are here to help in any way we can.

The NAHB, National Association of Home Builders has put together the most comprehensive site and is sure to provide answers to may questions you may have. Please visit the links below -

Tax Credits At A Glance -

FAQ - First Time Home Buyers -

FAQ - Repeat Home Buyers -

It will be official soon - Reuters is reporting that the $8,000 Tax Credit extension and expansion of a new $6500 credit for all buyers, has been approved by the House and now heads to President Obama to be signed into law.

On Wednesday, the Senate voted to extend and expand the tax credit to include many buyers who already own homes. Guess what, home buying pie just got a little sweeter, how about $6,500 sweeter! Today it was approved and off to the Oval Office where it is expected to be signed, sealed and delivered!

Here it is in a nut shell - I will continue to provide updated information as it becomes available....

People buying a new or "step-up/down" home and have owned their current homes at least five years would be eligible for tax credits of up to $6,500.

The First-time home buyers; which include anyone who hasn't owned a home in the last three years, can continue to get up to $8,000.

The details indicate that in order to qualify, buyers in both groups mentioned above, will be required to enter into the purchase agreement no later than April 30, 2010. The new law also states that the transaction MUST close on or before June 30.

It has been reported that nearly 1.4 million first-time home buyers have benefited from the tax credit. This number is from August, so the number sure to grow as many pushed to meet the now extended deadline. The NAR (National Association of Realtors) has estimated 350,000 of the buyers would not have purchased their homes without the credit.

I myself have enjoyed helping scores of new buyers over the course of the past several months and look forward to new activity that is sure to pop up as the result of this extension and expansion.

If you are not familiar with the details of the original tax credit, here are a few helpful links.

Top 21 Questions Answered on the $8,000 Tax Credit for 1st Time Home Buyers

Burning Question Answered! Is a Duplex or Multi-Family Dwelling Eligible for the New $8,000 First Time Home Buyer Tax Credit?

I will continue to provide updated information as it becomes available. Happy House Hunting......

Buying a home should be fun, not stressful. As you look for your dream home, keep in mind these 10 Tips for making the process as peaceful and stress free as possible.

1. Find a Real Estate Agent who you can connect with. Home buying is not only a big financial commitment, but also an emotional one. It's critical that the Realtor you choose is both highly skilled and a good fit with your personality.
2. Remember, there's no "right" time to buy, just as there's no perfect time to sell. If you find a home now, don't try to second-guess interest rates or the housing market by waiting longer- you risk losing out on the home of your dreams. The housing market usually doesn't change fast enough to make much difference in price, and a good home won't stay on the market long.
3. Don't ask for too many opinions. It's natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder when it's time to make a decision. Focus on the wants and needs of your immediate family- the people who will be living in the home.
4. Accept that no house is ever perfect. If it's in the right location, the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the bathroom is dated. Make a list of your top priorities and focus in on the things that are most important to you. Let the minor ones go.
5. Don't try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to "win" by getting an extra-low price or by refusing to budge on your offer may cost you the home you love. Negotiation is give and take.
6. Remember your home doesn't exist in a vacuum. Don't get so caught up in the physical aspects of the house itself- room size, kitchen, etc, -that you forget about important issues such as noise level, location to amenities, and other aspects that also have a big impact on your life.
7. Plan ahead. Don't wait until you've found a home and made an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.
8. Factor in maintenance and repair costs in your post home buying budget. Even if you buy a new home, there will be costs. Don't leave yourself short and let your home deteriorate.
9. Accept that a little buyer's remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big financial commitment and it also yields big benefits. Don't lose sight of why you wanted to buy a home and what made you fall in love with the property you purchased.
10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated a historically stable average of 5.4 percent annually (National Association of Realtors), a home's most important role is to serve as a comfortable, safe place to live.

An important thing to remember is that you don't have to go through the home buying process alone. I can't emphasize enough how important it is to have the right Realtor by your side. For a smooth, easy and stress-free as possible home buying experience in the Fox Cities Valley and Appleton, WI; call Bob Edwards from Coldwell Banker- The Real Estate Group today! 920-202-2431 is my cell phone or email me at bedwards@coldwellhomes.com to schedule a no cost, no obligation consultation.