Atlanta Realty Blog

$ 8,000 Refundable Tax Credit for First Time Homebuyers - Good for closings through November 30, 2009! ~ posted by Melanie Bailey

First-time homebuyers should begin planning now to take advantage of a tax credit included in the recently enacted American Recovery and Reinvestment Act of 2009, commonly referred to as “the stimulus bill”.

The Credit

Applies to home purchases on or after January 1, 2009 and before December 1, 2009.

The credit is equal to 10% of the purchase price of the home up to a maximum credit of $8,000.00

Reduces a taxpayer’s tax bill or increases his or her refund, dollar for dollar.

Is fully refundable, meaning that the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax that they owe.

First-Time Homebuyer and Qualifying Home

A taxpayer is considered a first-time homebuyer if he/she had no present ownership interest in a principal residence in the United States during the three-year period prior to the purchase of the home to which the credit applies. Thus, a prior owner of real estate may qualify if the three-year test is met. If a taxpayer owned a vacation home but not a primary residence within the last three years the taxpayer will be eligible for the credit if purchasing a primary residence.

 

When and How to Claim the Credit

Eligible homebuyers may claim the credit on their 2008 income tax return for qualifying purchases in 2009. Thus, in certain cases, one may be able to get a refund of the credit shortly after the purchase closes.

Income Limits

The credit is phased out based on your modified adjusted gross income (MAGI). MAGI is your adjusted gross income adjusted for various amounts excluded from income—for example, certain foreign income. For a married couple filing a joint return, the phase-out begins at $150,000. For other taxpayers, the phase-out begins at $75,000. This means the full credit is available for married couples filing a joint return whose MAGI is $150,000 or less and for other taxpayers whose MAGI is $75,000 or less

Credit Recapture

The credit for new homebuyers is recaptured if the home is sold within three years of the date of purchase. Exceptions will be made in certain cases such as sales that occur because of death or divorce.

If you or someone you know may qualify please feel free to contact us Or please pass this along to your friends, family and co-workers so they can take advantage of buying a home before the November 30th deadline.

Email this post

TOP 12 Reasons to BUY A HOME during THE HOLIDAYS posted by Melanie Bailey

1.       Uncertainty regarding loan programs and limits that may not be available in 2009 or after we have a new President in the White House.

2.       Because there are fewer buyers shopping for a home at this time, you may be in a stronger negotiating position.

3.       With fewer buyers on the market during the holidays, there may be less multiple offer situations, especially regarding REO properties and Short Sales.

4.       The transaction load is lighter for lenders at this time, so your file may be handled quicker, more efficiently, and more accurately.  This is true also for Title and Escrow.

5.       It’s nice to get a feel for a home when it’s decorated for the holidays.

6.       You may have more vacation or free time instead of having to ask off work to look at homes or complete paperwork, signings, etc.

7.       You can show your visiting friends and family your prospective new home.

8.       With fewer buyers on the market at this time, it may be easier to schedule inspections, etc., allowing you to shorten a contingency period in exchange for a more favorable price or lock in an interest rate on your loan.

9.       You’ll be enjoying your new home in the spring as opposed to waiting to move in.

10.   January is typically the best time of the year to buy decorating items or home improvement items, as the retail industry doesn’t want a huge slump after the boom in holiday shopping.

11.   If you have kids, they can transfer to their new school at the start of the new semester and avoid “getting behind”.

12.   What could be a better gift for the family than a NEW HOME FOR THE HOLIDAYS!

 

Email this post

 

 

A Change in the Foreclosure Experience? posted by Mia Hannah

I had an interesting experience this past week, I thought I would share – hopefully, if nothing else, you will put some consideration into this topic and begin the education process.

 

In the last several years I’ve assisted several clients in purchasing foreclosed properties.  My stance has always been that just because it is a foreclosure does NOT mean that it is a good deal.  I’ve always been very adamant about doing my homework on the numbers and 9 times out of 10, they weren’t good deals.  This past year a strategy that I’ve run into several times is the banks offering a foreclosure at an incredibly low price (one that flashes “GOOD DEAL!” in neon), we go through the paces of putting an offer in and get back a fax from the bank stating that there are multiple offers and please submit your best offer.  I have yet to win one of those bids because, again, we do it strictly by the numbers and even when offering straight cash, asking price + whatever that still makes it a good deal, there was always someone out there that willing to buy it at a higher price that I would never recommend my client purchase it for – with no disclosures, outdated aesthetics, repairs to be made and little protection.

 

This past week, I ran across a foreclosure that I thought surely had to be one of those neon signs – but the house was built in 2004, was in beautiful condition, great neighborhood, etc.  So we went through the paces, submitted a low offer just to get the lay of the land (ie fax back saying multiple offer) – instead we  got a counter back from the bank bumping us up a mere $5,000 and accepting all other terms.  Uh, no, I did not get excited – instead I got on the phone and started calling other listing agents around the neighborhood to find out what was wrong with either the neighborhood or the house.  I could find nothing.  So I began to ponder this deal that seemed “too good to be true” and I started bouncing an idea off the other agents and calling those I knew and respected - without exception, they thought my point had validity.

 

Barack Obama has said over and over that the economy will be his #1 priority.  He has said repeatedly that he is going to put “a hold” on foreclosures and force the banks into renegotiating the terms of those mortgagees in trouble.  Banks are already sitting on millions of dollars in foreclosed properties – do you think there is a possibility that they really need to dump whatever they can as fast as they can to minimize their losses?  ESPECIALLY now that they have Obama saying that they will be forced into doing business his way?  Do you think this might be part of the reason why the market took a very large plunge the day after he got elected?  The banks really need to move what they already have.  While it has always seemed like an obvious strategy to those of us in real estate we’ve been very frustrated by the banks not being particularly negotiable, hard to work with, and making an already stressful process worse.  None of us have liked dealing with banks because we have had so little control when it comes to protecting our client’s interest.  But now I have to wonder, based on this experience, if maybe things are turning around and they have been forced into “getting it”.

 

My thought process goes deeper than I went here, but this blog is already getting too long.  Here’s my bottom line point: I am hopeful and I really think that “the bottom” hit last Tuesday.  The big boys are now being forced into dealing.  This message is NOT to sell you on foreclosures.  There are also very good deals out there being offered by smart homeowners.  They know that what not-so-smart homeowners perceive as loss is really just a reduction in profit – and it will be made up on the other end!!  Warren Buffet is saying now is the time to invest in America

.  With the volatility of the stock market, why would you not diversify your investments?  If you have the means, get off the fence and invest in real estate!  I’ve been saying this for awhile now but I finally feel so strongly about it, that I’m putting it in writing with the hopes that it will at least move your thought process forward.

I’m not asking you to do anything blindly.  I AM saying educate yourself!!  Keller Williams has a seminar entitled The Millionaire Real Estate Investor.  It is a FREE investment seminar that will educate you about the investment mindset and process.  Give me a call at 404-317-2352 and I will find out where and when the next one is taking place in the area and we will reserve a seat for you.

 

Whether you voted Democrat or Republican, it is what it is.  Take advantage of what you have in front of you because that is what you have.  With all this said, aka The World According to Mia, I’m always available to help you in anyway I can.  Please do not hesitate to call me at 404-317-2352 and/or my email is Mia@HomesByMia.com.

Best Regards,

Mia Hannah

REALTOR®, EcoBroker®

PReduce Reuse Recycle

 

Email this post

 

So the Fed has Dropped Rates – What does that mean to me? Posted By Amanda Nichols

Staying focused on your financial goals! Posted by Amanda Nichols

Appreciation Rates Are Down Not Property Values ~ posted by Amanda Nichols

As they love to do, the national media has been putting the fear into people about the ‘pending crash’ of the real estate market.  This is an exaggerated truth, at best, that applies to very limited markets.  We have heard stories about record foreclosure rates that would lead you to believe that every third home is going into foreclosure.  The truth is that the vast majority of homeowners are continuing to pay their mortgages as they always have and are not in danger.

 

This is not to say that there aren’t some less than rosy things going on.  There is a significant tightening of the sub-prime lending market.  What this means to you is that if you have a credit score of 560 you can no longer get an interest only loan for 105% financing on that new home you’ve been eying (yes, these loans were actually being made).  This also means that there is a bit of a reduction in the number of able buyers in the market place.

 

The reduction in the number of buyers equates to a reduction in the rate of increase of property values.  This does NOT mean that there is a reduction in property values in the Atlanta market but simply a reduction in the rate at which they were increasing.  This means that people can no longer spend $40,000 on their credit cards and then expect to simply refinance their houses to pay that off year after year.

 

As the number of able buyers reduces in the market place coupled with the standard reduction in activity at this time of the year it gives more leverage to the buyers who are ready and able to buy.  If you are a solid buyer with good credit and some money to put down (you don’t have to put down 20% but it’s getting much harder to find 100% financing) you have an opportunity to find distressed Sellers and get a good deal that wouldn’t have been available just a few months ago.

 

If you are a ready and able Buyer or if you have any questions about this information, what’s going on in the market and what it means to you please contact me.  I am still strong, still selling and keep a very close eye on everything that is going on in our market.  Your home is my business!!

Posted by Amanda Nichols ~ Realtor ~ Keller Williams Realty Peachtree Battle

770-490-1563 ~ AmandaNichols@kw.com ~ www.bestagentever.com

Email this post