Tag: how to buy a home

Let's Clear the Confusion – Home Buyer Tax Credit

I always share as I write that I am not an expert and I do not even play one on TV so I want to make some of last weeks article a little more clear if I can. As my husband says, “lets see if we can make this as clear as mud” There is still confusion surrounding the tax Credit with the emphasis on CREDIT and not deduction. Please take my limited knowledge and run straight to your banker and your favorite Realtor and see what you can come up with. I have borrowed some examples that may apply to you and have consulted again with my banker friends that are wiser than me.

  • A refundable credit means that if you pay less than $8,000 in federal income taxes, then the government will write you a check for the difference
  • In the case that you owe $4,000 in income taxes at the end of the year you would pay nothing to the IRS and and receive a $4,000 payment from the government.
  • If you are due to receive a $1,000 tax refund from the government, your refund would grow to a whopping $9,000. ($1,000 plus $8,000 from the home buyer tax credit)
  • If your final tax liability is $6,000, but you’ve underpaid through your payroll witholding by $1,000. Normally, you would have to write the IRS a $1,000 check. This time, the first $1,000 of the tax credit pays your bill, and you get the remaining $7,000 as a refund.

Additionally, there are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples. (Higher-income buyers may receive a partial credit.)

This is short and sweet this week so you will have time to run on down and get all your ducks in a row so you can get that house. I like to think of this as a little house warming present. Some of my buyers are looking at it as a discount so to speak on their home and with money being tight that is a welcome and one more reason to purchase their first home. I will leave you with some resources that may help you clear up the process and navigate you to a successful purchase.

First-Time Home Buyer Tax Credit information from the IRS.

State Housing Agencies with programs that provide short-term loans that may be used to fund a downpayment in conjunction with the tax credit.

Buying and Owning a Home Freddie Mac

Buying a Home Department of Housing and Urban Development

Buying and Owning a Home Freddie Mac

Buying a Home Department of Housing and Urban Development

The Home Buying Process Federal Housing Administration

FHA Loans Federal Housing Administration

Homeownership Resources Fannie Mae

NOTE: Please know that much of this knowledge is general in nature and your local lender will let you know what is available in your location.

Sick and Tired of Losing Money?

IT seems that there are a lot of people excited about the market and sometimes buyers want to venture out on their own to purchase property whether it be by auction or a regular sale. There are some rather convincing reasons to use a Realtor to help you wade through fact and fiction and what is really a deal and what is just great marketing. To help you make that decision to use a” Realtor or not” let me give you some good motivation.

  1. A Realtor can help you determine what property would best serve your personal needs whether it be a straight investment or just a home for your family.
  2. A Realtor is more able to negotiate the price of a home on your behalf given that she knows the values of the local market. She also will make sure that you are pre-qualified so you will actually be looking at properties that will work for your unique situation. In addition, often times, a Realtor is better equipped and more experienced in negotiating real estate transactions.
  3. Home buyers almost never pay a commission to the Realtor therefore you get professional guidance and advice and a better deal on your new home with no cost to you. The only time a buyer would pay a Realtor commission is when agreed upon in advance, but in almost every case, the real estate commission is paid by the seller. Keep in mind ESPECIALLY when it comes to auctions YOU DO NOT GET a break by not using your Realtor. Your buyers premium is 10% whether you use a Realtor or not. Make sure you give them a call before you attend an auction and use their wisdom of the market and the property. For example, at the Island Reserve auction last Saturday, there were several examples of a little good timing and some sound advice saved in excess of $20,000.
  4. This is a big one and I have seen the sad results of this one from friends. It is important especially if you are not from the area to have a local Realtor who is familiar with the neighborhood that would best suit your needs as a buyer.

So basically a knowledgeable Realtor can actually save you a dollar or two and besides give them a call because if they are doing it they love what they do and they get so excited to share it with you!!! I actually wrote this because I got a really sweet call from one of our viewers that was not quite sure if it would cost her extra as a buyer for us to help her and I thought I just better clear that up.

We’re not going to beat around the bush here, we’re trying to make a living selling real estate, but we wouldn’t be doing this if it wasn’t what we love. First and foremost, we are relationship people. We are here to help you find what you are looking for. Many times we have turned people away from things and sacrificed commissions because it wasn’t what our buyer was looking for. We are always fair and honest, and if you ever have any questions, you can call us any time. And I mean, you can call us for ANY questions regarding real estate, and you don’t have to feel obligated to work with us. We just want to help you save money and buy your dream.

Thanks so much for watching our little show and for all your kind words….. we love it.