Posted by Annalisa Burgos | September 16, 2009
If you (or your spouse) haven’t owned real estate in the past three years and you’re in a good position to buy a home, it’s time to get your butt in gear!
The deadline to take advantage of the $8,000 tax credit for first-time buyers is midnight on Nov. 30, and that’s coming up sooner than you think.
READ: You have to close on the home purchase by Nov. 30.
The closing process has been known to take at least 30 days, and now with stricter lending standards and a more complicated appraisal process, delays can be expected. And tack on even more time if you’re dealing with a foreclosure or short sale.
So since you’re trying to close by Nov. 30, and Thanksgiving is the week before, plan to have a signed contract and begin the closing process no later than the end of October, unless you’re an all-cash buyer and don’t need financing.
And remember you don’t have to wait until you file your taxes to get your credit. Ask your mortgage broker or real estate professional about programs that will let you apply the credit to your closing costs now.
For most of the year, first time buyers looking for “bargains” (i.e. distress properties) were the main driver of home sales. Should that group go away with the end of the tax credit, the industry could be in for hard times in 2010.
That’s why the National Association of Realtors is lobbying to have Congress extend the credit and real estate agents are creating a sense of urgency (ex: Prudential Connecticut Realty countdown). And you’ve probably seen all the TV commercials encouraging people to buy.
So what are you waiting for?
Of course, if Congress decides to extend it, then all’s good. But with all the focus on healthcare reform, that’s no guarantee.
Posted by Annalisa Burgos | April 15, 2009
Judging by the lines at my post office this morning, a lot of people are waiting til the last minute to mail those tax returns. Kudos to those of you who have already received your tax refunds — April 15 is just another arbitrary date. If you’re a procrastinator like me, you’ve filed an extension so you can put it off for another day.
For homeowners, tax issues are always at the forefront of their minds, regardless of the date. Tax breaks are often touted as the biggest perk of owning a home, since you can deduct mortgage interest, property taxes and mortgage points for the year you buy. This year, an $8,000 tax credit for first-time homebuyers is enticing more newbie buyers to come out of the woodwork.
Any real estate transaction has an effect on your tax situation. Whether you’re selling a home or transferring a home to a family member, research the tax implications first.
Perhaps the most contentious tax issue for homeowners is property taxes. Local governments rely heavily on real estate tax revenue to balance their budgets. Today, as home values plunge in many markets, homeowners are asking that their properties be reassessed and their taxes lowered to reflect that sharp loss in value. If you want to appeal your property tax, contact your county assessor or the local government entity that handles real estate taxes in your area. Be wary of companies that claim they can get your property tax lowered if you pay them a fee. Oftentimes, you can start the appeal process yourself.
But don’t be too hopeful. It’s a recession and many cities are coming up short on their budgets. So even if you do appeal, they may simply increase the tax levy in order to get the same amount from you.
If you’re buying a home, do yourself a favor and estimate your property taxes yourself. Real estate listings show what the current homeowner pays, but oftentimes, the property is reassessed when a new owner takes over. Do the research so you aren’t unpleasantly surprised.
For more helpful tax tips, go to http://www.frontdoor.com/home-finance/FrontDoors-Top-10-Tax-Tips/54900. And remember to always consult your tax professional before taking any action.
Posted by Annalisa Burgos | March 6, 2009
A lot of news this week focused on Obama’s $75 billion foreclosure prevention plan, which involves refinancing Fannie Mae and Freddie Mac loans and setting an industry-wide standard for loan modifications.
But while it may be a challenging time for many homeowners and sellers, it’s a great time to be a buyer, especially one with a strong credit score.
If you’re currently renting, now may be the right time to buy. Consider the advantages of homeownership: not only are home prices falling and interest rates at a historic low, you can benefit from huge tax breaks.
In this month’s Top 10 feature (www.frontdoor.com/top10), we break down the 10 things home buyers, sellers and owners need to know about taxes. New this year: If you’re a first-time homebuyer who closes on a home in 2009, the fed will give you a $8,000 tax credit on your next tax return. And there are more perks to look forward to…
So hit the pavement this weekend, explore a neighborhood you may want to live in and check out some open houses. Browse homes for sale online. It doesn’t cost anything to look. And who knows? You may find your dream home.
Subscribe to this blog
Friend us on Facebook
Follow us on Twitter