First Time Home Buyer $8000 Tax Credit

First Time Home Buyer $8000 Tax Credit is still available, but quickly coming to an end.  You must close on your new home by December 1, 2009.  Keep in mind that most transactions take about 30 days.  So, time is really running out.

The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.

The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by the phaseout range of $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.

Home Selling Quick Tip 3

Make sure to clear out the clutter.  You want your home to shine above and beyond the other homes on the market.  Remember that the average home buyer is going to look at 10-20 homes that meet their criteria before they make a decision.  This is a case of first impressions.  If you don’t make the list of top 2-3 homes on their list, your home will be forgotten and discarded from their search.  You usually only get one chance.  Make it count.

By taking 4-5 hours upfront to fix up your home and stage it a bit can go a long way.  Even $200 – $500 in staging can end up netting you thousands more on your house.  It is so worth it.

Sell Your Home Quick: Tip 2

Come up with a sales strategy, but make sure it’s flexible. What’s your initial asking price? How long will you insist on it before making a reduction? How much of a cut will you accept? What about after that? Having a plan in place will help you react quickly, according to Greenwood, and will move your home that much more quickly.

Buyers want to feel like they are getting a deal these days.  It is important to know your bottom line and not be offended if you don’t get a full price offer.   Roll with the punches and understand that this is business and not to take it personal.  You always have final say when it comes to the actual accepted price.

Sell Your Home Quick: Tip 1

Price it right. The No. 1 thing that will sell a house quickly is price.  Of course you want to make sure that it is out there and people know it is for sale.  But all the marketing in the world won’t sell an overpriced house.

OK, so just how do you play the home-sale version of “The Price is Right”? That crackerjack agent you hired should have a good sense of what price will help sell your home sooner rather than later. As the owner, your objectivity is diminished, so give your agent free rein, within reason, to set the price. The broker will look at the average days a home in your neighborhood is on the market, how your home compares to others in the area and its condition.

Keep in mind too that even if you are able to find a buyer at above market value, an appraiser will have to “approve” the price if the buyer is financing the home.   This can be a deal killer and is becoming more and more prominent.

HomeBuyer Big Mistakes

The best way to avoid making a mistake it to learn from the mistakes others have made. Buying a home in a desirable location is your best defense. Remember: location, location, location.

* First-Time Home Buyer Tips.
Start your search online, and don’t rely on print because most homes are not advertised in the newspaper.

* Preview Homes for Sale.
Ask your agent to look at homes before showing them to you, and tour only those that fit your parameters.

* Avoid the Top 3 Home Buying Blunders.
Protect your earnest money deposit by writing contingencies into your contract.

Don’t go at it alone.  One of the most important steps if finding the right buyer’s agent to help you along the way.

Make sure you know the difference between the signing time and the actual closing date.   This can help you avoid a ton of frustration.

How To Pick An Agent

With so much information available online, you might wonder why you need an agent at all. But all local markets vary from one another, and a good agent can guide you by giving you information based on experience and market knowledge.

* Why Hire an Agent?.
An agent with experience can help you to avoid making mistakes such as choosing the wrong home or offering too much.

* Find a Real Estate Agent.
Start by asking your friends and family member for referrals. Make sure you are comfortable with your agent before committing to work with that person.

* Follow Protocol for Working with Agents.
Here are 10 tips to prevent you from messing up or saying the wrong thing to an agent.