Real Estate Blog

President Obama today signed a bill extending and expanding the Federal Tax Credit for Home Buyers. The bill passed the U.S. House of Representatives yesterday and the U.S. Senate late Wednesday.  It's now official, the deadline for the first time home buyer's tax credit has been extended to June 30, 2010*. Also, current home buyers can now take advantage of a $6,500 tax credit in some cases.

The new provisions include the following changes:

• *Taxpayers must purchase their home, or be locked into a contract to close, before midnight on April 30, 2010. The closing must occur before midnight on June 30, 2010.
• The credit is allowed in full for those with incomes up to $125,000 ($225,000 if married filing joint). The credit is reduced for taxpayers with an income between $125,000 and $145,000 ($225,000 and $245,000 if married filing joint) and is not available for taxpayers with an income higher than $145,000 ($245,000 if married filing joint).
• Taxpayers (and their spouses) who have lived in their home for five consecutive years out of the eight years preceding closing on a new house may qualify for a reduced credit ($6,500 or $3,250 for those who file separately

What is a Home Warranty:  It is like an insurance policy that covers some home repairs. You pay a yearly fee, around $350 - $500, and if you have a problem, such as a broken air conditioner, they will come out and fix it for just the charge of a service fee (usually around $35 - $65).  If the unit cannot be repaired, it will be replaced.

Not all home warranty policies are the same. The "basic" plan of most policies do NOT cover the refrigerator, washer, dryer and some other appliances. They will not repair anything that was broken before the purchase of the policy. If your home inspection states that the a/c was broken, then the home warranty will NOT fix it.  They do look at your home inspection when you purchase the plan during the home buying process.

Here is a very generic list of what MAY be covered when you get a home warranty with the purchase of your home:

To celebrate the newly expanded home buyer's tax credit, I'm offering a 1% discount on my fees to list your home for sale.  If you've been waiting to move, now's the time. Homes are indeed selling, a lot better than a year before.  Prices have leveled off, which is great. They even rose a tiny bit recently. 

If you'd like to know what your home is worth in today's market, please don't hesitate to call or email me.  I can provide a full price analysis, FREE for you with no obligation. I'm here to provide you any information you need to help you make your decision of whether or not it's time to sell your home.

If you're upsidedown in your home, you owe more than it is currently worth, and you would like to sell.  Ask me about "short selling" your home. 

The Senate voted 98-0 on Wednesday to pass the revised and extended home buyer's tax credit.  Yesterday, the House voted 403-12 to pass the new legislation. The President is EXPECTED to sign the legislation shortly, maybe even today. 

There are some new, great changes to the tax credit. The biggest change being that CURRENT HOMEOWNERS will now be eligible for an up to $6,500 tax credit. If you sell your home and buy another (aka relocate) AND you've lived in your current home for at least 5 years, you may be eligible for the tax credit.

I will post the details of this fully under the $8,000 Tax Credit link on the left side of my web site.

I will also post a FAQ shortly outlining the details, once it has been fully passed by the President.

I'd like to clarify the issue of the $8,000 first time home buyer's tax credit.  As of today, the deadline is still November 30.  It has not yet been extended.  I do, however, think that it will be extended soon. Sentaor Harry Reid is hoping to attach the proposal to an unemployment benefits bill that may reach the Senate floor this week. “We do expect this tax credit plan to be considered as a part of the unemployment bill at some point,” said Regan Lachapelle, a spokeswoman for Reid.

In addition to extending the time limit for the tax credit, there are a few changes that are being propsoed. Homeowners (not just first time home buyers) buying a new primary residence would be eligible for a $6,500 tax credit if they owned their home for five consecutive years in the previous eight. That's a great addition and will enable many more people to take advantage of the tax credit. However, individuals who earn more than $125,000 annually and couples who earn more than $250,000 would not be eligible. 

As soon as the extension is either passed or squashed for good, I will post an update. 

If you have any questions about the tax credit or the housing market, please don't hesitate to call me any time at 623-760-8390.