Contact MargaretArchive for the 'Real Estate' Category
IRS Releases Rules for Repeat Buyer Tax Credit
January 27th, 2010 Categories: Real Estate
By Andrew Levy, Capitol Title (Crofton, MD)
When Congress extended the $8,000.00 First-Time Homebuyer Tax Credit to April 30, 2010, a new tax credit was enacted for “repeat” homebuyers. The problem was that taxpayers couldn’t utilize the credit because the IRS had not published the rules, nor created the forms which must be used.
Finally, on January 15, 2010, the IRS posted its revised Form 5405 on its web site, www.irs.gov.
The key provisions of the new rules are as follows:
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Taxpayers who have occupied their principal residence for five consecutive years during the previous eight years may be eligible to utilize the credit upon the purchase of another principal residence.
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The maximum credit is 10% of the sales price with a cap of $6500.
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The purchase contract must be dated between November 7, 2009 and April 30, 2010.
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Members of the armed forces and certain government employees who are stationed overseas may be eligible for an additional year.
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The maximum purchase price of the new home is $800,000.
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Sale of the existing home is not required but must use the new house as their principal residence.
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The taxpayer’s modified adjusted gross income must be $125,000 or less for an unmarried individual
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Married taxpayers filing jointly must have modified adjusted gross income of $225,000 or less
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Above those income limits, the credit will decrease incrementally and are eliminated at incomes of $145,000 for singles and $245,000 for taxpayers who are married and file jointly.
When the taxpayer files the applicable return, it must include the following:
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A copy of the signed HUD1
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Evidence of long-term ownership and occupancy (property tax records, homeowners insurance records or IRS Form 1098 mortgage interest statements.
Because of the IRS delay in issuing the rules and providing the forms, this provision does not appear to have been utilized. Now that the rules and forms are available, an additional group of prospective purchasers should be motivated to enter the market and claim their $6500.
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Thanks, Andy, for keeping Crofton home owners and real estate agents updated on the constantly-changing laws affecting our real estate transactions.
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Early End Likely for Spring Home Buying Season
January 25th, 2010 Categories: Real Estate
Crofton area home sellers shouldn’t wait until March to list their homes for sale because buyers are out and about NOW. They want to take advantage of the federal tax credit available to both first-time and some move-up buyers.
The usual spring real estate market is its hottest from March through May, but it’s likely to slow down after April 30 this year - the deadline for writing a contract that will qualify for the tax credit. (Settlement must occur by June 30, 2010.)
Who qualifies?
- Home owners who have resided in a previous home for five consecutive years (within the last eight) are eligible for the $6500 tax credit.
Anyone who has not owned a residence during the three years prior to the purchase is considered a “first-time home buyer” and is eligible for the $8000 tax credit.
There are income limitations in either case: Unmarried buyers with incomes up to $125,000 and married couples with incomes up to $225,000 may receive the maximum tax credit. However, some home buyers with income exceeding these limits may still be eligible for a reduced tax credit.
Which properties are eligible?
Any single family residence located in the United States that will be used as a primary residence and is purchased for $800,000 or less is eligible. Generally, a primary residence is the place where an individual spends most of his/her time. This includes single-family detached homes, condos or co-ops, townhouses or any similar type of new or existing dwelling.
Cost to home sellers:
There is no cost to home sellers, so this tax credit is a huge benefit to you as well as to home buyers. That’s why I suggest you get your home on the market as soon as possible to take advantage of this boost to the spring real estate market. There probably won’t be a better time for selling your Crofton area home in the near future!
Check out homes for sale now.
Just click on the Search for Homes link or the tab at the top of this page to find out what’s on the market at this time. If you like, you can register for a free email subscription to find out about new listings as they come on the market. For home buyers, the benefit is obvious. However, sellers and future sellers can benefit also from being keenly aware of other homes for sale.
Don’t miss the 2010 Spring Home Buying Season by waiting to list your home for sale!
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FocusOnCrofton.com is your one-stop source for information about Crofton, Maryland, and the surrounding area. It’s my way of keeping current residents informed about their community while also attracting relocating home buyers to the Crofton area (including Bowie, Crownsville, Davidsonville, Fort Meade, Gambrills, Millersville and Odenton). Please feel free to contact me any time for more information.
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Considering a Retro Redo for Your Bowie or Crofton Home?
January 20th, 2010 Categories: Real Estate
As a real estate agent selling homes in the Bowie-Crofton area for many years, I’ve seen my share of the good, the bad, and the ugly.
“Updated kitchen” and “updated bath” are key phrases in any MLS listing, signaling to buyers that the home decor is probably good – i.e., no longer a relic of the 60’s or 70’s featuring original pink bathroom fixtures and tile or aqua kitchen appliances and metal cabinets.
But wait… that’s not necessarily the case any more, as “retro” becomes more and more popular in homes of that period. One of my clients was the lucky recipient of my original pink bath fixtures when we finally remodeled our bath last year – one of many people who asked for them.
Just goes to prove that one person’s trash is another’s treasure.
If you want a “Retro Redo” for your Bowie-Crofton area home that preserves the original 60’s and 70’s features, check out Retro Renovation, an online resource with the tag-line Love the House You’re In. The site features information for re-doing homes from the 40’s through the 70’s, promising to assist homeowners who cherish their older home’s character and want to preserve it. You’ll find answers to frequently asked questions as well as recommendations on retro kitchens, bathrooms, counter-tops, flooring, lighting, paint colors, etc.
You may decide to freshen up the ol’ bath or kitchen with just a fresh coat of paint instead of expensive updating or remodeling, after a visit to this website, and you can call it “retro” instead of “old”. Even if this isn’t your taste, I’d be surprised if you didn’t enjoy looking at the pictures… they’re bound to bring back some memories for anyone who lived through those decades.
P.S. Looking for original bath fixtures from the 60’s or 70’s? You don’t have to scavenge the neighborhood looking for discards from neighbors who prefer “new”. Check out the Habitat for Humanity ReStores throughout Maryland.
Copyright 2010. Margaret Woda. All rights reserved
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FocusOnCrofton.com is your one-stop source for information about Crofton, Maryland, and the surrounding area. It’s my way of keeping current residents informed about their community while also attracting relocating home buyers to the Crofton area (including Bowie, Crownsville, Davidsonville, Fort Meade, Gambrills, Millersville and Odenton). Please feel free to contact me any time for more information.
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Mind Games in Real Estate Often Backfire on Buyers
January 11th, 2010 Categories: Real Estate
A relative of mine in a different state is selling her home now, and I’m learning a lot about how home sellers think and, more importantly, how they feel.
Since we don’t have a professional relationship, I’m hearing the straight un-filtered scoop about what it’s like for her at each step of the home-selling process.
Home Sale Preparation – A little uncertain about what’s needed in the way of home sale preparation, but eager to please prospective buyers and willing to do whatever her agent recommends.
Listing Contract – Signed with no second thoughts and ready to get the show on the road.
First Showing – A little frenzied as she scurries around to turn on lights, empty the trash, fluff the pillows and cushions… and very eager for someone to call after the showing and say “Your home is lovely!” (Really, she doesn’t even care if they want to buy it… she just wants someone to acknowledge all the work she did to get it ready for showing!)
Fifth Showing – Less enthusiastic about the lights, trash, etc., but more anxious than ever for feedback. Struggling to understand why buyers don’t fall in love with her beautiful home.
A Contract is Coming – Nervous but cautiously optimistic. Dare she look to the next step in her life?
Contract in Hand – Like many home sellers today, she is stunned at the insulting offer. And price isn’t the only negative… they want her draperies (not for sale at any price!). Seller doesn’t feel good about it, but eventually negotiates an “agreeable” price.
Home Inspection – They may call it a “home inspection” but, like many of today’s buyers, this is the moment buyers have been waiting for… it’s their excuse for re-negotiating terms that already favor them beyond belief. The home is in excellent condition but, instead of providing feedback promptly after the inspection, they say they’re “thinking about it” now… don’t expect anything from them ‘til next week.
You’ve got to be kidding me!
Waiting to provide results of the home inspection is perceived by the seller as a mind game, not a thoughtful process on the buyer’s part. In the case of a nearly new home in excellent repair (one that had a home inspection just a year ago), the seller knows there are no major issues that require consultation with contractors or other experts that might require several days.
The most likely reason the buyer is stalling now is to toy with the seller’s emotions… to make the seller worry that the sale could fall through so they can return and ask for more concessions (perhaps the draperies?). If I ever questioned whether this is an effective strategy, I can see now that this will probably not benefit the buyers.
Instead of being resigned to a disappointing sale price and being more than willing to work with the buyers to resolve any legitimate home inspection concerns, the seller is really annoyed. With each passing hour, she’s feeling more negative about these buyers and this transaction…. and less willing to address any home inspection issues, even legitimate ones, let alone give up her draperies!
The seller’s conversation with herself goes something like this: “The worst that can happen if this sale falls through is that I will put the house on the market again and/or continue to own and live in a wonderful home.”
These buyers may soon discover that mind games in real estate can backfire on them. In this case, it could cost them the house.
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FocusOnCrofton.com is your one-stop source for information about Crofton, Maryland and the surrounding area. It’s my way of keeping current residents informed about their community while also attracting relocating home buyers to the Crofton area (including Bowie, Crownsville, Davidsonville, Fort Meade, Gambrills, Millersville and Odenton). Please feel free to contact me any time for more information.
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Confession of a Crofton Maryland REALTOR
January 8th, 2010 Categories: Real Estate
Selling Crofton area houses, townhomes, and condos – that’s what REALTORS do, but it’s NOT what I do.
A few weeks ago, as Christine and I were doing some re-organizing in my office, we came across a box containing hundreds of photos of homes I’ve sold over the years. She seemed a little surprised to hear me describe the buyers and sellers of each home, as we went through the photos, and why it was the “perfect” house for them… or where they went when they relocated. It wasn’t the home’s features, location or price that came to mind.
You see, real estate is not about the houses for me… it’s about the people! Perhaps this is the reason I’m still doing real estate (and loving it) after four decades!
Through many ups and downs in the market, war and peace, recessions and inflation, extreme highs and now extreme lows in interest rates, there is never a dull day in real estate. Real estate practices, training, and technology have evolved constantly… always creating new challenges and new opportunities for career success. Over the years, my friends have become clients and my clients have become friends. Now I really have to think about it to recall whether our relationship began as clients or as friends – because they are both.
My clients would probably be surprised to learn how often I think about them. On Christmas morning, for example, I know that my buyers are experiencing their own family traditions in homes we found together. And admittedly, I do gloat just a little to think that I had a teeny little role (which they have probably long ago forgotten) in helping to shape their memories of this day and so many other special occasions in their homes.
Corny, I know, but true.
Yet thoughts about my clients are not limited to Christmas or occasions when I come across photos of their home…
It’s rare that I show property today without passing a home I listed or sold in the past (at which time, it’s likely my current clients will hear all about those past clients – kinda like a proud parent bragging about their children). And, of course, I think about each and every one of my clients whenever I put a mailing label on a postcard addressed to them.
I’ve watched as my clients’ children have grown up, delighting when those grown children also become my clients. And I’ve treasured my clients’ loyalty over the years – last summer I had the honor of listing the home I sold to my first Maryland clients in 1973. To me, my client database feels like a giant family album of very special people who allowed me the privilege of sharing an important milestone in their lives. They’ll always have a special place in my heart, not just in my file cabinet!
Knowing a lot about homes, communities and the real estate market is necessary in real estate – and I strive to be “the best” at that – but focusing on the people is my passion. YOU, my past and present clients, are the reason I’m still doing (and loving) real estate today!
P.S. Christine, who I mentioned early in this post, is my son Tim’s wife and another member of Team Woda. If you haven’t met Christine or talked to her yet, you’re in for a treat when you do.
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FocusOnCrofton.com is your one-stop source for information about Crofton, Maryland and the surrounding area. It’s my way of keeping current residents informed about their community while also attracting relocating home buyers to the Crofton area (including Bowie, Crownsville, Davidsonville, Fort Meade, Gambrills, Millersville and Odenton). Please feel free to contact me any time for more information.
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