In the tsunami of information crashing on the public today, it is easy to get overwhelmed. This is especially true when it comes to the home tax credit program. I like to keep things simple, so I searched for some good advice to keep you focused when it comes to buying your dream home.
Or in my case, your dream blog.
From Elizabeth Weintraub, About.com Guide The “Red Shoes” Experience for a Home Buyer
“Women will relate to this. Say, you need a new pair of red shoes. You go to the mall. At the first shoe store, you find a fabulous pair of red shoes. You try them on. They fit perfectly. They are glamorous. Priced right, too. Do you buy them? Of course not! You go to every other store in the mall trying on red shoes until you are ready to drop from exhaustion. Then you return to the first store and buy those red shoes. Do not shop for a home this way. When you find the perfect home, buy it.”
From Bankrate.com A Penny Saved
“Start a down-payment fund. The goal should be to amass 20 percent. Set monthly savings goals. Shore up the family budget. Work an extra job if you have to. The pain will precede a gain: lower house payments and higher equity in the future.”
From ABC News Tax Time
“[To claim the tax credit] There’s a form, 5405, to fill out. You’ll also have to submit a copy of your settlement statement, usually Form HUD-1, with the names and signatures of all parties, the property address, the sales price and date of purchase.
To avoid refund delays, the IRS recommends that long-time homeowners who purchase a new home also provide documents to show they meet the requirement for consecutive years lived in their old house. These can include mortgage interest statements, or property tax or homeowner’s insurance records.”
From Joe himself:
This is a once-in-a-lifetime opportunity to get a great value for a home, and get a tax credit. If you dont subscribe to the Red Shoes Experience of homebuying, and fancy yourself an all-star comparison shopper – get out there now. You only have a few months to get the house, and get the tax credit.
Another Joe – Joe Murray – was on NBC 15 in Madison last night. Check out why this is a great time to look for a new home, especially if you have some tiny tenants like the family featured in the story.
Below is a video of my idol Lawrence Yun, NAR chief economist, explaining pending home sales over the past year.
Lawrence is the man. Below are three important things to note:
• We expected this downturn. People thought the first-time hombuyer tax credit would be ending November 30, explaining the huge surge in September and October. Thankfully it was extended and expanded!
• We currently have had an “exceptionally low, rock-bottom mortgage rates,” and consumers need to recognize this is not sustainable. Lock in at these rates now because mortgage rates are anticipated to creep higher by spring 2010.
• The November 2009 Midwest index is 9.2% higher than November 2008. Repeat, 9.2% higher!
Bottom line: Take advantage of the extended and expanded homebuyer tax credit before it is too late!
Joe knows you’re intrigued with the extended and expanded tax credit. It’s the best holiday gift ever! With this great gift, you have to be looking for an excuse to take advantage of it—especially those of you eligible to act on the “expansion part.” Here are a few solid reasons you should take advantage of the $6,500 tax credit.
Desire to upgrade
Five to eight years ago, you and your significant other were early in your careers, and bought a very modest house. Nothing flashy, but comfortable. Now that you are both well into your careers, it’s time to move into that neighborhood, or house you’ve been dreaming about living in.
Need to downsize
Empty nest syndrome? With all the kids out and off to college, often times that house is just too big! Or maybe you’re way beyond an empty nest, but your knees can’t handle all the stairs in your two-story house. The best part of downsizing? Less space equals less mess!
Move closer to your children
Oh the joys of being a grandparent – all the fun, and none of the responsibility! The opportunity to move closer to your kids as they begin a family of their own is priceless.
Make room for an aging parent
Your parents are wonderful. They do your ironing because you never learned how. They are responsible for molding you into the amazing person you are. Now it’s time for you to return the favor. Consider moving into a new house with an extra bed and bathroom to accommodate a wonderful parent (because both would cramp your style.)
So if you have needed or wanted to move, and any of the above situations sound at all familiar, now is the time. Take advantage of the tax credit extension today and contact a REALTOR®.
When people heard about the tax credit being revved back up in November, the questions poured in. And as much as I love real estate (and that’s a lot), Joe loves to answer questions, tackle FAQs and vanquish home buying myths, and all in a holiday-inspired format.
On the first question for the HomeBlogger, the homebuyer said to me…
Who does this tax credit apply to?
First and foremost, this is an extension and expansion. The $8,000 tax credit is still in play for the first-timers until April 30, 2010, hence the extension.
The expansion refers to current homeowners, who have owned and occupied a home consecutively for five of the last eight years. They are eligible to receive a $6,500 credit when they purchase a home between November 7, 2009 and April 30, 2010.
On the second question for the HomeBlogger, the homebuyer said to me…
Does this tax credit have to be paid back?
According to the NAR, that’s a big N-O if you occupy the house for three-plus years. Say you don’t hit that three-year threshold, the tax credit will be “recouped during the sale” of the home.
On the third question to the HomeBlogger, the homebuyer said to me…
Can I use this on my vacation homes?
Only primary residences are eligible for the tax credit, folks.
On the fourth question for the HomeBlogger, the homebuyer said to me…
What determines the actual amount of my home tax credit?
While a winning smile may get you an extra pump of vanilla in your morning latte, two main variables are taken into consideration for the tax credit: the price of the home and the buyer’s income.
These are just a sample of questions you may have, and Joe likes to keep things short, sweet and interesting. The next few posts will be covering the details of the extension, so do not fret if I did not get around to your exact query.
For your immediate Joe fix, follow me on Twitter and get your fan on in Facebook.
Hello Wisconsin! Like so many people out there, I decided I needed a new place; consulted a professional, found a great address; and moved in. No word yet on when I will have my blog-warming party.
Now down to business.
Listening to the radio or watching TV, certain words have crept into our everyday conversations: social media, the economy and home tax credit. Lucky for you, Joe and the WRA team can talk about all three – wait for it – simultaneously. I know it sounds ambitious in our inaugural blog post. Trust me, it’s worth it.
First off, we want everyone to know about the opportunities out there so we Twitter, Facebook, YouTube and blog. (That’s Tweetbooktubeblogging for the layman.) But we are also spreading the tax credit message in other social sites, so keep coming back for updates. You want to visit us right now, don’t you?
Now that we have item number one taken care of, let’s talk tax credit. Plain and simple, it’s a way for Wisconsin homebuyers to leave 2009 strong and meet 2010 even stronger.
The basics (from the National Association of Realtors):
- Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
- Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.
And that’s the first post, folks. We will be delving into the details of tax credit more in depth in the next post.
I still need to unpack, and buy a mouse pad to bring the whole space together.
