The Basics: 2009 First-Time Home Buyer Tax Credit (up to $8,000)

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.

Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.

Breaking news: Tax Credit Can Be Used on Closing Costs.

Who Qualifies?

First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.

To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Will the Credit Be?

The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:

The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.

The buyer's income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.

reprinted from www.Realtor.com

How does "Days on Market" relate to "Percentage of Selling Price to Asking Price"?

My Buyer, who is seeking an investment property of under $300,000, asked me an interesting question while we were looking at properties together this morning, which I'll get to in a minute. From our previous outings she's narrowed down her choices to five (and will narrow it further before making an offer on one of them).

Her top five (in no particular order), have been on the market for 10, 48,82, 114 and 375 days respectively. The one on the market for 10 days has had no price reductions, while the one on the market for 375 days has been reduced three different times and is currently at 85% of its original asking price.

Her question as she is mulling over her Purchase Offers: To what degree does "Days on Market" relate to "Percentage of Asking Price to Selling Price"?

In our market, residential, 1-4 family homes the current quarterly median List/Sell ratio 94,9%, just 1.3 points off last year's; and the Days on Market is currently 122, up 12 days from last year. Without applying for a grant to do the research myself, has anyone out there recently quantified the data in a market similar to ours?

In researching this, a couple of articles come to light, but nothing substantive:
http://www.move.com/home-finance/real-estate/sellers/setting-price-for-selling-home.aspx
http://www.trulia.com/voices/Market_Conditions/What_percentage_less_than_the_asking_price_are_hou-5126
www.city-data.com/forum/charleston-area/176479-asking-price-vs-sale-price-mt.html

This was not the subject I expected to open with, but in a small city that has arguably the highest percentage of PhDs relative to the general population, my client, her husband (and my husband) just three of them) , it can be the way people think.

In the end, I believe she'll pick the properties that "work" best for her lifestyle, location, the amount of time she foresees having to devote to the properties and the value each represents, and can potentially return.

But is IS undeniably an intriguing question. So any and all input will be appreciated! In the meantime, Catch Cande next time, right here.

Welcome to Ithaca-Home: Sensible, Straightforward Attitudes about Real Estate

First, a short explanation for my silence to date. In the short decade since I started buying, selling and renting properties, and reading everything I could get my hands on about the subject, I've made forays into writing and publishing. But in truth, I was hesitant because I felt others were far more articulate than I on the subject.

I finally realize it's what you have to say, not necessarily how you say it, that really matters. So I'm coming out to share facts, opinions, advice, values, ideas, statistics, information and links to others out there whose opinions and ideas I value (or once in a while, whose opinions and ideas I believe are completely off the mark!).

In the interest of full disclosure, I should say that I am a Licensed New York State Real Estate Salesperson, a Landlord & Property Manager, a Property Owner, an intermittant Tenant, a Real Estate Investor, a Student of the Subject of Real Estate and partner in the FREE Real Estate Website, www.STRUTYOURHUT.com where Sellers, Landlords and Agents can do much more than merely List their properties... (but that's a subject for another day!).

So stick with me. you can "Catch Cande" right here.