The $8,000 tax credit deadline for first-time homebuyers will be here soon

Right now is the time to buy your first home and receive the $8,000 tax credit, which is part of the American Recovery and Reinvestment Act. The deadline to file for the tax credit is November 30, 2009, and while that date may seem way in the future, first-time homebuyers must begin the process now to make the deadline.

Here’s a refresher about the tax credit:

First-time homebuyers will receive an $8,000 tax credit, or 10 percent of the home’s value, whichever is less. First-time homebuyers are defined as those who have not owned a principle home during the past three years.

The credit can be applied to either 2008 or 2009 tax returns and does not need to be repaid if the homebuyer lives in the house for a minimum of three years.

The tax credit applies to first-time buyers who purchase a principle home between January 1, 2009 and November 30, 2009.

Claiming the tax credit is easy. Once the sale is completed, new first-time buyers can claim the tax credit on their returns. No special forms or documents are required.

Don’t pass up this great deal. A wide variety of homes are available now and you can be a part of our country’s economic revival. Give me a call. I’ll explain the tax credit and home purchase in simple, easy-to-understand language.

Also, you can check out Realtor.org. The more you know, the better decisions you make.

Have Patience and Bet On the Turtle for a Robust Housing Market

Schneider Blog—May 19, 2009
New home builders are feeling a bit peppy these days as builder confidence rose two points in May for the second straight month, according to a report by The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index. This is the first back-to-back increase in builder confidence since February 2008.
The index gauges builder confidence in the market for newly built, single family homes.
CEO Jerry Howard says that the two consecutive months of gains in the index “are encouraging. We hope we are approaching the bottom and market stability is just around the corner.”

But wait. There’s the good news/cautious news scenario. The good news is the worst of the housing market problems may be over, but right now the housing market is improving at turtle speed. So, if you’re a bettor, place your money on the turtle and not the hare.

Sure, we want the economy to turn around, offer housing for qualified homebuyers and emerge from the three-year housing slump in good shape. Past experience has proven that sky rocketing growth with little control has not been favorable for our economy and the housing market.

Slowly but surely the housing market and the economy edge upward, and that’s the sensible way to recovery. We’ll see the beginning of a bounce back in early fall of 2009, but don’t expect to see the housing market equilibrium to stabilize until 2012.

Key to the housing industry is the first time homebuyer, who can take advantage of the $8,000 tax credit. This group of homebuyers is contributing stability and growth to the housing industry. Lending is another issue, but builders and Realtors hope that historic low mortgage rates, qualified buyers and lower purchase prices will encourage lenders to jump into the housing market and make lending available to worthy buyers.

Slow but sure wins the race and that’s the way to go now. There are new and existing real estate opportunities out there for you. Cort Schneider understands the St. Charles market and will help you make the right choice.

Are You On The Fence? Now’s The Time to Jump Off

Intrepid first-time homebuyers jumped off the fence and made an important impact on the housing market this week. Pending home sales rose 3.2 percent in March, according to the National Association of Realtors Pending Home Sales Index. Closer to home the news is even better–pending home sales in St. Charles County rose 26 percent in March, says Karen Vennard, president of the St. Charles County Association of Realtors.

Investors liked the news too. Infused with a sense of optimism about the economy, the stock market responded with the Dow Jones Industrial gaining 214 points and the Nasdaq 44 points in one day.

First-timers evaluated the housing situation and decided that now is the time to buy. Interest rates are at an all time low, there is plenty of housing available, prices are affordable, and then there’s the 8 percent tax credit incentive for first-time buyers.

That tax credit expires December 1, 2009. The credit is equal to 10 percent of the home’s purchase price up to $8,000. This has really moved people into the market instead of waiting to see what might happen down the line.

Because of the time limit on the tax credit, if you are a first-time buyer even remotely considering a home purchase this year, now is the time to get organized. This is excellent advice even if you don’t qualify for the tax credit.

Potential buyers should:

• Keep saving! Cash is king and the bigger the down payment, the better mortgage terms you’ll get.
• Investigate financing now and get pre-qualified for a loan.
• Be very honest with yourself and determine how much house you can really afford. Do research on how much your monthly payment would be and consider expenses like utilities and taxes.
• Check your credit report. You don’t want any surprises there.
• Work with a SCHNEIDER Real Estate Realtor who knows the neighborhoods, schools, social amenities and has your interest as a buyer as first priority.
  

Sellers should:

• Communicate with your Realtor. Pass along improvements you’ve made that would make a good selling point. Open communication is absolutely necessary for your Realtor to bring you the best qualified buyers and avoid misunderstandings.
• Speaking of communication, make sure everyone knows your home is for sale. Word-of-mouth is one of the best marketing tools. Welcome neighbors at your open house. They in turn may very well bring your buyer to you Realtor and clinch the sale.
• Keep your property neat, clean and inviting. Mow the grass, trim the shrubs, water those annuals and perennials. Nothing says you’re not welcome like dead flowers and overgrown grass. Potential buyers will find your listing on the Internet or in the newspaper and drive by to preview the property. You have about 45 seconds of curb appeal to convince a buyer that your home is well cared for and the right purchase.
• Green, green, green is the way to go. The current movement toward energy savings and sustainable resources is not a fad. Buyers are looking for ecological solutions in their purchases and sellers need to incorporate these features into the home’s selling points.
  

While things are looking up right now, we still don’t know if the market has bottomed out and is on the way up to more robust times. Both buyers and sellers must make their own personal decisions about the housing market. Returning to a growing economy and housing market won’t be easy. But if we all get off the fence and show some confidence, we’ll get there sooner rather than later.