A True Tax Credit for 1st Time Home Buyers!

Homebuyers get a bonus in the stimulus bill
First time buyers could receive a $7,500 tax credit if they purchase soon.

By Les Christie, CNNMoney.com staff writer
Last Updated: January 29, 2009: 5:18 PM ET

NEW YORK (CNNMoney.com) -- If you're thinking of buying a home, there could be a big bonus for you in the economic stimulus bill that's now before Congress.
Among its many provisions is a $7,500 tax credit for first time home buyers. The House passed the $819 billion stimulus plan, including this tax credit, in a vote late Wednesday. The Senate may vote on its version of the bill some time next week.

Technically, the stimulus bill is actually changing the terms of the $7,500 tax credit that was issued as a part of the Housing Recovery Act, which Congress passed last summer. That legislation required that the tax credit be repaid over 15 years, making it more of a no-interest loan. Not surprisingly, the measure had little impact on the market. The stimulus bill now under consideration would make that tax credit a true credit that doesn't need to be repaid.

Many in the housing industry believe this credit could do a lot to jump start the moribund housing market.

"Our economists have studied the effect [of the credit] and they say there could be a 10% increase in home sales if it's implemented," said Mary Trupo, a spokeswoman for the National Association of Realtors. "It gives people who are sitting on the fence or who have inadequate funds for closing costs an incentive to act now."

A 10% increase would yield an extra half million sales this year.

Who qualifies
To be eligible, buyers cannot have owned a home for the past three years, and the new home has to be used as a primary residence. The credit phases out as income rises above $75,000 for singles and $150,000 for couples, and disappears entirely at $95,000 and $170,000, respectively.

Applying for it is easy, or at least as easy as doing your income taxes. Just claim it on your return. That's it. No other forms or papers have to be filed.

Both the Senate and the House versions of the new act remove the requirement that buyers repay the credit. The Senate bill applies retroactively to any purchase completed between January 1, 2009 and the end of August. The House version is also retroactive to the start of the year, and expires at the end of June. As long as buyers don't sell for at least 36 months, they keep the money.

And the credit is refundable, meaning that it can be claimed even if the amount of the credit earned exceeds the buyer's tax liability.So even if your total tax bill comes to just $5,000, you can still qualify for a full $7,500 refund.

The housing industry has been pushing this idea for many months, arguing that first-time homebuyers are the key to boosting home sales. First time buyers who purchase from existing homeowners free those sellers to trade up to bigger, better houses.

Buyers beware
But the credit has its drawbacks, according to Bob Williams, a spokesman for the Tax Policy Center, which gave it a mediocre C+ grade in its Tax Stimulus Report Card.

Williams argues that the credit is poorly targeted because it goes to every first-time buyer, not just the ones who wouldn't buy without it. So, it merely provides a windfall for many people who would have purchased anyway. (See correction, below).

And in the end, a $7,500 tax credit, regardless of the details, does nothing to address the issue that's holding most buyers back - the suspicion that prices are going to keep falling.

"As long as people are uncertain about what markets are going to do, this won't help much," said Williams. "It's not enough to change that."

The industry would like to make the tax credit stronger by making it available to all homebuyers, not just first-timers. And it's pushing to have the credit last through the end of the year, at least.

"By the time it's implemented," said Trupo, "there could be very few months left to act."

An earlier version of this story incorrectly stated that the tax credit for a home purchased in 2009 could only be taken off of 2009 taxes. However, homebuyers can choose to take the credit for 2008, according to the IRS. Even if they buy a home after they've filed their 2008 taxes, they can file an amended return.

The Home Warranty Benefit

This is a great article I just read in the Baltimore Sun and thought I would share since I am a huge advocate of purchasing a home warranty whether you are a buyer, seller, or simply a homeowner. I hope you find this information helpful!



http://http//www.baltimoresun.com/business/realestate/bal-re.warranty25jan25,0,6481572.story?page=1

Best Remodeling Products for Resale

Buyers in today's market have a wide selection of homes from which to choose. So, after pricing their house so that buyers will come to see it, sellers who want to stand out from the competition should start at the curb. First impressions count, and the first thing a buyer sees is the outside of a home. Therefore, it's not surprising that exterior remodeling projects gain back most of their costs when a home sells.

The 2008 Remodeling Cost vs. Value Report released recently by the National Association of REALTORS® shows that, nationally, wood deck additions and siding replacement projects returned more than 80% of costs.

According to the report, Maryland, Virginia and Washington, D.C. are among the regions with the highest percentage of remodeling costs recouped in 2008. In these regions, vinyl siding replacements recouped almost 86%. Wood deck additions recouped about 76%, while composite decks recouped about 71%. Wooden window replacements returned about 71% to 72% of costs.

A buyer who is impressed with the outside of a home is more likely to step inside it, so effective interior remodeling is not to be overlooked. Remodeled kitchens returned 65% to 75% of costs. Remodeled bathrooms recouped between 66% and 70%. Attic bedrooms earned back about 67% of the cost of adding them.

Some home improvements weren't as successful at capturing buyer interest. According to the report, remodeled home offices brought back about 51% of cost. Sunroom additions recouped about 54% of the money put into them. Back-up power generators also made the list at about 54%.

Investing in exterior renovations and the most popular interior renovations can give a home the competitive edge. A home with curb appeal might not only reach a closing faster, but recover most of the remodeling expenses, as well.

Home sales, of course, depend on many factors in the local real estate market. The most important factor is being at the right price to attract buyers.

Coldwell Banker Introduces International Home Search for iPhone and Blackberry

Coldwell Banker Introduces International Home Search for iPhone and Blackberry
01-06-2009 —

Listings in 28 Countries Now Available on Mobile Devices

PARSIPPANY, N.J. — Coldwell Banker Real Estate LLC announced today that international Coldwell Banker real estate listings in 28 countries including Canada, Australia, Mexico, Italy, Aruba, and Colombia will now be accessible via a customized platform for iPhoneTM and BlackBerry® users.

When viewed on an iPhone, BlackBerry or other smartphone the Coldwell Banker flagship Web site, coldwellbanker.com has a different look and feel, along with navigation specifically tailored for optimal viewing the mobile device. This includes property listings search and home value estimator functions. When a user accesses the site through his or her handset, the Coldwell Banker Web site automatically recognizes that it is being accessed by a mobile device and will serve up that specialized interface. Users do not need to download any special software to benefit from this enhancement to the Coldwell Banker mobile technology.

“Now consumers in the home buying and selling process can easily search both domestically and internationally using their mobile devices,” said Michael Fischer, senior vice president of marketing for Coldwell Banker Real Estate LLC. “Coldwell Banker will continue to find ways to blaze a trail with technology that provides consumers with listings anytime, anywhere.”

Those looking for a home both domestically and internationally will be able to search for homes and utilize the brand’s home value estimator. In addition, consumers will be able to enter specific search criteria such as city, state, price as well as optional filters including number of bedrooms and bathrooms. When a property is selected, users can view all of the specifications for that home and contact an agent directly.

Giving Back

I want to share with you what an affect being Being a mentor has had on me this year!

When I decided to sign on as a mentor at the local elementary school and I have to admit I was a bit worried about how the girls would take to me and how to initially break the ice. Luckily I didn't have to.

At the first meeting I was hugged by all of my three girls and I realized that this was going to help me just as much as it would them. Now every time I see my girls I am thrilled to hear what they have been up to since our last meeting. We don't talk about school or work, we just simply enjoy each other's company. It’s nice to make a difference in someone’s day, even if its just a much needed hug.

I hope this will inspire you to consider taking time to become a mentor or simply give back in some way to your community. Believe me, you’ll be glad you did!