Q: What is the amount of the tax credit?
A: The tax credit is equivalent to 10% of the purchase price of a house up to $8,000.

Q: When do I have to buy to be able to take advantage of the tax credit?
A: Effective for purchases on or after January 1, 2009 and before December 1, 2009.

Q: Do I have to be a first-time homebuyer?
A: Yes.  The purchaser and the purchaser's spouse may not have owned a principal residence for 3 years before buying a house.

Q: Which properties are eligible for the credit?
A: All principal residences are eligible.

Q: Are there income limits?
A: Yes.  The full amount of credit is available for individuals with an adjusted gross income of no more than $75,000 ($150,000 on a joint return).  Phases out above those caps ($95,000 and $170,000).

Q: Is the tax credit refundable?
A: Yes.  The tax credit reduces (or can eliminate) income tax liability for the year of the purchase.  Purchasers will receive a refund for any unused amount of the tax credit when they file their tax returns.

Q: Do I have to repay this credit over a period of time?
A: No.  There is no repayment for purchases on or after January 1, 2009 and before December 1, 2009.

Q: Can the tax credit be recaptured?
A: Yes, if the home is sold within 3 years of purchase, the entire amount of credit will have to be repaid to the government.

After previewing at least 20 homes this week for clients and showing some that Jesse and I hadn’t previewed, the truth is that so many homes aren’t selling because they are overpriced.  It amazes me that given the constant bleak news about the real estate market and declining prices that there are still so many folks who apparently think that this situation doesn’t apply to their homes.

The fact of the matter is that if you want to sell a home in today’s market, you’ve got to have the best home in the neighborhood at the most competitive price.  Thinking that you’ve got the very best house on the block and that your house deserves to get a higher price will get you nowhere and certainly won’t get you a contract.  I understand this thinking, however, because people have emotional attachments to their homes and find it hard to see them objectively – and that’s why they’re overpriced and sitting on the market for months and months on end.

Let’s face the facts.  If your house has lots of wallpaper, paint colors that are dated, a kitchen that was updated several years ago, and bathrooms that have never been updated, your house no matter how much you love it is not going to command a high dollar value.  Your choice is to either to make the needed improvements or lower the price to a sensible figure.

Now, go through your house and look at it critically, make the improvements or lower the price and get it sold!

If you’re selling and would like a copy of our FREE brochure Pricing & Preparing Your House to Sell for Top Dollar, just CLICK HERE!

Looking to buy and want a real bargain?  Check out our BEST BUYS.  Each week we select three properties in the Greater Baltimore Metropolitan Area and post them on our website.  Check it out!

Wishing you sunshine everyday and the home of your dreams,
Jeri

A few months ago, I wrote a blog about the $7,500 tax credit for first-time homebuyers that was supposed to be an incentive to stimulate the housing market.  Well, the Senate just voted for a $15,000 tax credit (since the $7,500 wasn’t enough money to stimulate anything.)

Sounds good so far?  Yes, except that the buyer will have to pay it back.

This is an attempt at a fix, but it will do nothing to stimulate the market.  People are worried that housing prices will continue to fall and people are worried about losing their jobs.  A $15,000 interest-fee loan is not going to bring buyers back into the market.

A real stimulus was in the proposal that the Senate was expected to debate yesterday.  This proposal would provide 30-year fixed financing at a rate of about 4% for anyone purchasing a primary residence.  Now that might get the attention of our buyers with solid jobs who have been sitting on the fence waiting to see what will happen next.

Certainly, super low interest rates combined with really great buying opportunities should stimulate our Maryland real estate market, but only time will tell.

If you’re thinking about buying a home, CLICK HERE to receive a free copy of our brochure, 10 Easy Steps to Homeownership.

Also, check out some real deals on our BEST BUYS page.

If you’re considering a move or if you just have some questions about real estate, we’d love to help you.  Feel free to call us at 410-215-7131 anytime.

Wishing you sunshine everyday and the home of your dreams,
Jeri

We’re on the verge of Maryland’s spring real estate season and if you’re a first-time homebuyer, now is the time to make your move and buy a home.  Typically home prices in our area increase once spring arrives.  Right now is your golden opportunity because there are unprecedented bargains to be had combined with low interest rates.  Waiting to buy could very well mean paying more money for the same home that you could buy today.

Other than the pride of homeownership, why else should you buy?  There are seven really good reasons:

1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.

2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.

3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.

4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.

5. Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.

6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.

7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

CLICK HERE to receive a FREE copy of our brochure, 10 Easy Steps to Homeownership.

Looking for a bargain?  We scour the market each week and select three properties that we believe are really great deals.  CLICK HERE to see the homes that we chose this week!

By the way, if you know of someone looking to buy or sell a home, we'd love to help them, so please feel free to pass along our contact information located at the bottom of this page.

Wishing you sunshine everyday and the home of your dreams,
Jeri