When do I get my return?

How do I file for the tax credit? And when do I get my return?

I have been with potential buyers recently who are eligible for the tax credit and have asked this question. The first question is understandable but the second question I was concerned about. They were under the impression that since it is 2010 they had to file for the tax credit on their 2010 taxes (which makes since). This is not the case at all. If you are eligible for the tax credit, and you close on a new home before June 30, 2010 you can file for this tax credit on your 2009 taxes. 

I am not an accountant, so I will not go into to much detail about the actual process of the filing, but if you have already filed your 2009 taxes, you can amend them with the tax credit form. The form you are going to be filing is the 5405 First Time Homebuyers Form (http://www.irs.gov/pub/irs-pdf/f5405.pdf). If you have not yet filed your taxes you must attach this form with your filing. 

Once you have filed it is only a matter of time until you will receive your tax credit. I am not going to estimate how long it will take the IRS to drop your check in the mail because that would be foolish. There is a great Q & A site on the IRS site that can answer a lot of other questions you might have about this credit. You can get to it by going to: http://www.irs.gov/newsroom/article/0,,id=204671,00.html. 

I hope this is helpful. 

Location, Location, Location?

There have been three key words that have surrounded the world of real estate since its beginning. They have defined good investment decisions, home buying decisions, and become a rule of thumb for everyone from first time homebuyers to billionaire tycoons. Location, Location, Location has been the keystone for every real estate purchase. Now, with the tides changing to a slower marketplace in a down economy these words have also begun to evolve. In our current residential marketplace in Central Florida those words have become Price, Price, Price.

We have seen time and time again, great homes, in great locations sit vacant for months and months. On the flip side, we have seen subpar homes, in mediocre neighborhoods receive three and four offers the first day on the market. This has become a trend that is carrying across all price ranges in all neighborhoods. There are a few reasons for this trend. First, buyers are more educated now than they ever have been in the past. The internet has allowed buyers to search through all the available homes on the market without ever leaving their couch. By the time they get out and begin physically looking at properties they are so aware of what it is they are looking for that they are much quicker to write an offer. The key to getting these offers is to have it priced at a point where they are willing to schedule a physical showing. Secondly, investors are a pocket of buyers that have not previously been competing with residential home buyers. Investors can smell value before it hits the MLS and are prepared to write an offer, sometimes, sight unseen.

With all this being said, if you are attempting to sell a home you need to be aware of the circumstances. Pricing for a quick sale does not mean a cheap sale. Well educated buyers are willing to pay market value for a home. Often times sellers price a home with “negotiating room” which leads to them losing much of their buyers market and ultimately taking less for their property due to a lack of demand. Weary sellers can’t negotiate well and never will. Get the most out of your sale by competitively pricing your home.

Keep the new rule of thumb in mind. PRICE, PRICE, PRICE!

Tax Credit Passes House and Senate

"WASHINGTON – Nov. 5, 2009 – The $8,000, first-time homebuyer tax credit has not yet been extended beyond its Nov. 30 end date, but it’s very close to gaining a longer life.
The extension was added as an amendment to an existing bill, HR 3548, that extends unemployment benefits. The U.S. Senate passed that bill on Wednesday and, after debate, the U.S. House passed HR 3548 this afternoon. It now needs only President Obama’s signature to become law, and the White House has indicated it will sign it, perhaps as early as tomorrow.
Until the president signs the bill, however, it is not law.

In addition to extending the tax credit for first-time homebuyers under the current rules, the bill adds a smaller tax credit for move-up homebuyers who have lived in the house for five of the past seven years. The bill also increases the income limits of homebuyers from $75,000 (single) to $125,000; and from $150,000 (married) to $225,000.
Florida downpayment assistance
After the president signs the bill and extends the tax credit, the Florida Homebuyer Opportunity Program – a downpayment and closing costs assistance program relating to the federal tax credit –automatically gets extended too. The state still has about $28 million available for homebuyers. The money is essentially a loan to first-time buyers; they receive it upfront, use it for a downpayment or other costs, and pay it back once they get their federal refund."