Government Homebuyer Tax Credit FAQ!

Many taxpayers are asking "Can someone explain how I may benefit from the Homebuyer Tax credit revisions which now include more than First time homebuyers. Read below:

How does a current home owner qualify for the $6,500 credit?

Buyers must have lived in their homes for at least five out of the last eight years. The home they buy must become their primary residence, but buyers don’t have to sell their previous home. They can use the previous home as a rental or a second home and still claim the credit.

Does the new home have to be more expensive than the one the buyer currently owns?

No. It is fine to use it to downsize. If the property sells for more than $800,000, the buyers don’t qualify.

Can buyers who are building a new home claim the credit?

Yes, although the contract must be in place by April 30 and the buyer must move in by July 1.

Can buyers claim the credit if they purchase a home from a relative?

No. The legislation prohibits taxpayers from claiming the credit if the sale is between “related parties,” including parent, grandparent, child, or grandchild.

Many more home buyers can now receive the credit provided by the government. Let's see how you or someone you know may qualify for the tax credit. Call Char today!

Buying a new home? Be aware of these changes to builder standards

Home builders are compromising on construction details, including some basics, as buyers seek to pay less for new homes.

Here are some of the common ways to economize, estimated savings to the builder, and the issues for the buyer to consider:

• 17-foot double garage saves $5,000 to $8,500. The recommended width is 20 feet. Narrower makes it harder to get in and out of the cars.
• Textured walls and ceilings. $450 on a 3,000-square-foot home. Hard to repaint and repair.
• Smaller central air. $1,000. It takes a long time to cool the home.
• Advanced framing. $10,000. Advanced engineering studies say placing studs at 24-inch intervals rather than 16 doesn’t affect structural integrity. Actually, it leaves more room for insulation, which is a good thing.
• Fixed windows. $200 per window. Not being able to open windows is a huge inconvenience for many people.

Straight from Washington:

Senators reached a compromise to extend the $8,000 tax credit for first-time home buyers, a boost the housing industry expects will help it pull out of its two-year-old downturn.

Lawmakers in Washington also added a $6,500 tax credit for other primary-home purchasers and raised the qualifying income limits to $125,000 for single taxpayers and $225,000 for joint taxpayers, housing-industry sources said.

Under the Senate compromise, buyers must have sales agreements in hand by April 30, but they will have until June 30 to go to settlement, the sources said. The measure still faces votes in the full Senate and the House.

The tax credit is no longer only for first time home buyers. Homeowners can now "move up" to a larger home and receive a tax credit. Nice...Really Nice!

Things to Consider when Selling Your Home, in this Market

How to Sell Your Home, Fast!
If you’re trying to sell your home, you already know it’s a challenging market. Not only are there a lot of other homes on the market competing with your house, but some buyers are finding it difficult to obtain mortgages. Plus, with distress sales—foreclosures and short sales—accounting for half of all home sales in some parts of the nation, it’s hard to compete on price alone.

There are things you can do, however, to better make your home stand out. Here are some tips:

Price Your House Right. This is probably the most important thing you can do. With the market so competitive these days, buyers will completely ignore your home if it’s not priced realistically. Buyers today don’t care what your neighbor sold his home for a few years ago. A realistic, fair market price—or even a price slightly lower than fair market value—is the best way to attract buyer interest. This is where a qualified real estate agent can provide invaluable assistance.

Get Out Quick. Short sales are notorious for being, well, not short. Banks may take months to evaluate a short sale offer, and the potential buyer is left waiting helplessly during this time. By offering a fast closing, however, a buyer—who perhaps has children she wants to enroll in school—can move in and get settled quickly. That’s a huge advantage over waiting for a short sale to be approved.

Offer Curb Appeal “Plus.” Foreclosures often need substantial repairs because they’re frequently abandoned by their owners. Often, they are sold “as is” by the banks that own them. A home that is in move-in condition can save a buyer time and money. Consider doing some minor renovations or improvements to update your home and make it more attractive to potential buyers.

For more support in Selling Your Home, Call Char at 813-841-2382 today!

Moving Tips:

It’s a well known fact that moving can be one of the most stressful experiences of our lives. But it doesn’t always have to be. With a little advance planning, organization and some attention to detail, your move can be relatively stress-free.

Here are a few Simple and Helpful tips:
Hire a reputable mover: A reputable mover can give you peace of mind. Don’t just hire the first mover you see—or the cheapest. An unqualified mover can end up costing more in the end if items are lost or broken. Check references carefully, and contact your local Better Business Bureau to see if complaints are on file.

Make a schedule: Start at least two months before your move (if possible!), and create a checklist. The more organized you are, the fewer things you will forget, and the less stress you will have—particularly as the move gets closer and time is at a premium.
Label boxes properly. To save time—and help make sure boxes end up in the right rooms when you arrive—label them with the contents and the room they go in.

Eliminate excess possessions before the move: If you won’t need an item in your new home, get rid of it before you move. You’ll save time packing, eliminate clutter and, if you hold a garage sale, you’ll make some extra cash too.

Stock up on supplies: Nothing creates stress like running out of boxes or packing tape at the last minute. Have plenty of supplies on hand.

Change your address early: By completing a change-of-address form before you move, you can save yourself the headaches of overdue bills, service disconnects and even identity theft. Don’t forget to schedule cut-off dates for utilities—and make sure these same services are turned on at your new home. Many firms now allow you to make these changes online.

Whew! With theses tips, Moving will be so simple and will save You time and money!

Planning to buy a house?

It’s one of the smartest decisions you can make—and not just because you’ll be creating a wonderful home in the location of your choice. It’s because homeownership has many tax benefits as well.

Homeowners may receive benefits from Uncle Sam when they purchase or sell a home, and tax advantages may even accrue during the period you own a home. That's why many people consider homeownership to be the ultimate tax shelter.

Here are just three of the possible tax-saving opportunities for homeowners*:

1. Mortgage interest deductions. Interest paid on a mortgage on a first—or even second—home is deductible for those who itemize. That reduces the cost of ownership. For example, someone who pays $10,000 in mortgage interest and who falls in the 25% tax bracket could save up to $2,500 in taxes each year. Generally, all the interest paid on a mortgage is deductible, unless the loan is more than $1 million.
2. Real estate tax deductions. Property taxes based on the assessed value of your home and paid to a state or local government can be deducted—whether you pay directly or through an escrow account. Your bank will provide you with a statement of the actual amount it paid. Also, remember to look at your settlement statement if you recently purchased a home. Any prepaid taxes for which you reimbursed the seller are deductible as well.
3. Capital gain exclusion for the sale of a home. Under current law, if you are selling your principal residence, you can exclude from taxation any profits up to $500,000 for married taxpayers or $250,000 for single taxpayers.

Call Charlene "Char" McPherson at 813-841-2382 today so I get you on the path to the home of your dreams.

* Consult a tax professional for details.

New Appraiser Code of Conduct

The new HVCC, Home Valuation Code of Conduct, rules became effective in May. The intent of the new rule is to keep appraisers from altering property values to please lenders. The code was initiated after New York Attorney General Andrew Cuomo prosecuted the giant home-mortgage lender Washington Mutual in 2007 for working in collusion with a large appraisal firm.

The new rules Summarized:

• Anyone associated with producing a mortgage cannot select the appraiser judging the property


• To comply with the new regulations, which cover all Fannie Mae- and Freddie Mac-backed loans, lenders have turned to “appraisal management” companies, which typically select appraisers from a pool.

How these changes affect YOU:

• The National Association of Mortgage Brokers estimates that the new code has added an average of $711 to the cost of getting a mortgage because of added fees for second appraisals and extended loan locks.


• Appraisers will now determine values for homes in areas in which they are unfamiliar i.e. an appraiser may work in one county but may be asked to go to another county to determine the value of a home.


• Under the new system, appraisal requests now go through the management companies, which retain as much as 40 percent of the appraisal fee. The appraisers that take these assignments via the appraisal management companies, accept nominal fees and may not take the time to adequately research a market

The National Association of Realtors has asked ranking members of Congress, and the conservator overseeing the government-supported mortgage backers Fannie Mae and Freddie Mac, for an 18-month moratorium on the new system.