Posted on Tue, Jul 13, 2010
Allow Plenty of Time - While it may be tempting to try and visit as many properties as possible on a single day, "overbooking" won't give you enough time to linger and fully tour each individual home. If you find a house you truly like, you will probably spend more time reviewing each room in greater detail. Assume that each house you view will hold your interest enough for a lengthy exploration.
Dress Comfortably - House hunting isn't a job interview, so dress casually and comfortably for the season. Wear slip-on shoes and adequate socks - homes with new carpet or flooring will often include "please remove shoes" signs. You will be doing a lot of walking and taking trips up and down stairs, so supportive footwear is a must. Clothing should fit comfortably enough to accommodate reaching up or bending/crouching down to examine cupboards both high and low.
Carpool - Taking just one car is particularly convenient when viewing multiple properties on the same day. A one vehicle approach ensures that no one gets separated or lost. Also, by moving over to the passenger seat you're free to consider the merits of each last house and pay attention to the neighborhood near each property, rather than focus your energy on squinting at street signs.
Pay Attention to the Surroundings - Speaking of the neighborhood; make sure you pay attention to the area close by each home on the way in. What kind of shopping opportunities and facilities are within a short distance? Are there appealing destinations within walking distance? What are the schools like nearby? How far will your commute be? Are many other homes for sale in the immediate area?
The idea is to have some feeling of whether or not the neighborhood is right for you before you ever set foot in the actual home. If you're lucky enough to fall in love with the house itself, knowing the lay of the land ahead of time can give you the confidence to make an immediate offer.
Use Your Nose - Generally speaking, a bad (or unidentifiable) smell inside or outside the home is not a good sign. Likewise, be somewhat suspicious if the home is overpowered by the smell of potpourri or intense candles in every room, as this can be an attempt by the seller to mask problematic odors. Mildew and mold smells indicate much larger problems - mold removal can cost thousands of dollars, and locating/fixing moisture leaks can be a difficult task. Pet smells or smoke smells can be minimized with cleaning, but will likely take time to fully dissipate. If you are interested in a home with a strong smell, hire a qualified and experienced home inspector who will unmask the cause of the odor.
Posted on Mon, Jan 25, 2010
RISMedia reports:
"Americans want smaller houses and they are willing to strip some of yesterday's most popular rooms-such as home theaters-from them in order to accommodate changing lifestyles, consumer experts told audiences at the International Builders Show."
So, here are the top 10 must-have features in today's new homes:
1. Large kitchens, with an island.
2. Granite countertops
3. Energy-efficient appliances
4. Home office/study.
5. Main-floor master suite.
6. Outdoor living room.
7. Master suite soaker tubs.
8. Stone and brick exteriors.
9. Community landscaping
10. Two-car garages.
Read the full article at RISMedia.
Posted on Sun, Dec 27, 2009
Reported today from the LA Times:
Home buyers hoping to take advantage of a new or extended tax credit should not procrastinate: This third bite at the apple will be the last.
Proponents of the $8,000 credit for first-time buyers and the $6,500 credit for move-up buyers made it clear during the debate on Capitol Hill that the benefits would not be renewed when they expire. And a lobbyist for the National Assn. of Realtors confirmed that at the group's annual convention last month.
Lawmakers "made us promise practically in blood that we would not come back" for another extension, Linda Goold, the Realtor group's director of tax policy, told her members.
During the debate, Sen. Johnny Isakson (R-Ga.), a former real estate broker and a longtime proponent of the tax credit, promised his colleagues, "This is the last extension."
And Senate Finance Committee Chairman Max Baucus (D-Mont.) said, "It is important that this tax credit does not become a permanent fixture of the tax code."
As it stands now, buyers who meet the income eligibility requirements have until midnight April 30, 2010, to ink a deal and must close by midnight June 30 to qualify.
Congress enacted the original $7,500 first-time buyer credit as part of the Housing and Economic Recovery Act of 2008. But because the credit had to be paid back it was more like a no-interest loan than a true credit and there were relatively few takers.
So in the American Recovery and Reinvestment Act of 2009, lawmakers upped the ante to a maximum of $8,000 for new buyers who closed before Dec. 1. They also said the new credit need not be paid back unless the taxpayer moves out within the three-year period following the purchase.
This second attempt at stimulating sales worked so well that the housing lobby implored Congress to help keep the momentum going. So lawmakers extended the deadline for first-timers and added a "long-term resident" tax credit for repeat buyers who owned their current home for at least five consecutive years out of the last eight.
Incidentally, the credit is not a flat $8,000 for new buyers and $6,500 for repeat buyers. It is 10% of the purchase price up to those ceilings. There is no credit if the price of the house is above $800,000.
Read more at the LA Times article.
Posted on Thu, Dec 03, 2009
Do you qualify?
You qualify for the Extended Homebuyer Tax Credit if:
You meet IRS income and homeownership rules.
You sign a binding contract by April 30, 2010.
You close on a home purchase by June 30, 2010.
The home of your dreams may come with a bonus: a tax credit.
There's happy news for current homeowners: If you intend to sell your home and buy another in 2009 or 2010, you may be eligible for a federal tax credit of up to $6,500. The Extended Homebuyer Tax Credit legislation, passed in November 2009, also shares the wealth with first-time homebuyers-up to $8,000.
Are you eligible?
You're considered a current homeowner under IRS rules if you've used the home being sold or vacated as a principal residence for five consecutive years within the last eight. You're a first-time homebuyer if you or your spouse haven't owned a home for the three years before your purchase.
In both cases, keep in mind that the credit amount you're eligible for begins to decrease for joint filers if your modified adjusted gross income is $225,000 ($125,000 for individuals); it disappears at $245,000 ($145,000 for individuals).
The ultimate amount of your credit depends on the price of the home and your income.
To claim your benefit:
Close on a new principal residence between Nov. 7, 2009, and April 30, 2010. You can settle as late as June 30, 2010, as long as you have a binding contract by April 30.
Don't spend more than $800,000 on your new home.
When you submit your tax return, attach a copy of the settlement statement you received at closing. Check with the IRS or your tax adviser to confirm what additional documentation may be needed.
Decide whether to:
- Apply the credit to your 2009 tax return, filed on or before April 15, 2010,
- File an amended 2009 return; or
- Apply the credit on your 2010 return, filed on or before April 15, 2011.
First-timers who purchased a home between Jan. 1, 2009, and Nov. 6, 2009, may also be eligible for the $8,000. Keep in mind that the income limits in this case are tighter than for those who purchased after Nov. 7.
Apply the credit to your 2009 taxes
To claim the credit on your 2009 tax return:
- Complete IRS Form 5405 to determine the amount of your available credit.
- Apply the credit when you file your 2009 tax return or file an amended return.
- Attach documentation of purchase to your return or amended return.
Which properties are eligible?
You can apply the credit to primary residences, including single-family homes, condos, townhomes, and co-ops.
Do I need to repay the tax credit?
No, not if you occupy the purchased home for three years or more. However, if the property is sold during this three-year period, the full amount of the credit will be recouped on the sale.
This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.
Resource: NATIONAL ASSOCIATION OF REALTORS®
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