Only 63 days left to claim the homebuyer tax credit!

Congress voted to extend and expand the First-Time Home Buyer Tax Credit program on November 6, 2009.  There is only 63 days (as of Feb 26, 2010) to claim it. 

The $8,000 tax credit expiration date has been pushed forward to Spring, requiring homebuyers to have an accepted written contract no later than April 30, 2010 and to be closed on the purchase by June 30, 2010.

“Move-Up” buyers were also provided an incentive to purchase with the expanded program.  Homeowners that have lived in their current residence for five out of the last 8 years are eligible for a tax credit of $6,500.   Don’t get confused by the “move up” lingo–a current homeowner can purchase a home that has less square footage and amenities than the current residence and still be eligible for the credit.  For example, my folks have decided to move from their 3000-sqft home into a 1000-sqft town home and are eligible to receive the incentive.

The tax credit’s basic eligibility requirement remain the same: 

• A home cannot be acquired through gift or inheritance
• A home cannot be purchased from an entity in which your are a majority owner
• All parties to the purchase must meet eligibility requirements
• A home cannot be purchased from a parent, spouse or child

There are some additional criteria that must be followed, as well.

First, the property being purchased cannot exceed a sales price of $800,000.  Second, household income thresholds have been raised to $125,000 for those who file their taxes singly, and $225,500 for buyers that file taxes jointly.

Don’t forget that the incentive is a true TAX CREDIT—not a tax deduction.  A tax filer who is eligible for the full $8,000 credit would receive a check from Uncle Sam for $8,000 if there is no tax liability for that particular year.  What a time to buy! 

A complete list of qualifying criteria is posted on the IRS website.  It is important to review your qualifications with a tax professional in order to determine your eligibility. 

Interest rates along with home prices are at an all time low.  Contact Matt for additional information and/or to take advantage of this once in a lifetime opportunity:  208-869-3469.

Just over 60 days to go . . .

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Report shows home buyers’ negotiating power gains

Home buyers in much of the United States paid thousands of dollars below asking prices in December and for the first time in 11 months gained negotiating power, real estate website Zillow.com said.
According to December Zillow Real Estate Market Reports, buyers paid 2.7 percent less, or a median of $5,618 below the listing price on homes bought in December, up from $5,538, or 2.6 percent, for homes bought in November.

The gain, however, was still far less than December 2008 when buyers bargained a median 4.5 percent, or $10,018, off the last listing price, Zillow said.The data is calculated by comparing the last listing price of individual homes and the final sale price.November had marked the 10th consecutive month discounts shrunk, meaning buyers were negotiating less and less off the final asking price each month.

More buyer negotiating power tends to put downward pressure on overall home prices and may push more mortgages “underwater.” This negative equity has been one of the biggest banes of homeowners, making many unqualified for home loan refinancing and preventing some from selling.