What the Listing Agent Won’t Tell You

An open house is a great way to view a property, but the last thing you want to do is see that property alone.  If you tour an open house and agree to allow the listing agent to write for you an offer to purchase, you would be forfeiting your right to independent representation.

Another instance where home buyers often run into trouble is when the decision is made to work with an agent whose brokerage firm also takes listings.  Homes you view may be listed by agents in the same brokerage company.  If your agent, as well as the listing agent, works for the same firm, how can you be sure that your interests will be fully protected during your home-buying process?

In both cases potential buyers encounter what is called dual agency – where either the same agent, or agents of the same brokerage firm, represent you and the seller, even if the two agents don’t work in the same office. Dual agency is legal in most states, though it may be subject to special real estate laws and regulations, and requirements of industry ethics codes.

As a potential buyer, you need an Exclusive Buyers Agency on your side.  A buyer’s agency will NEVER assume an adverse interest to you by accepting a listing from anyone. Jebb & Driggin Realty ONLY represents buyers.

Posted by Mathew Kane – Buyers Agent

Filed under: Exclusive Buyers Agent, First Time Home Buyer, Dual Agencies, Exclusive Buyers Agency, Exclusive Buyers Agent, Tips for attending Open Houses

Tax Credits: Not Just For First Time Home Buyers

Move-Up/Repeat Home Buyer $6,500 Tax Credit:

• How Is This Credit Different? The Tax Credit is not just for First Time Home Buyers.  If you have owned and lived in a home for at least 5 consecutive years of the last 8 years, you may be eligible to receive a tax credit of up to $6,500 if you purchase a principal residence after November 6, 2009 with a binding sales contract signed by April 30, 2010 (or if you purchase by June 30, 2010 with a binding sales contract signed by April 30, 2010).  Note: If you are married, both you and your spouse must pass the homeownership test to qualify.

• Are there income limits? Yes. The income limit for single taxpayers is $125,000; the limit for married taxpayers filing a joint return is $225,000.

• Will I be eligible for a tax credit if I make more than the income limit? Yes.  There is a $20,000 phase-out for the credit, so if you are single and make less than $145,000 or married with a household income of less than $245,000, you will receive a reduced credit.  Consult your tax adviser for information about how the reduced credit is calculated.

• How is the amount of the tax credit determined? The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.

• Are there limits on the purchase price? Yes.  For this credit the purchase price must be less than or equal to $800,000.

• Will purchase of a condo qualify? Any home that will be used as your principal residence will qualify for the credit.  This includes single-family detached homes, townhouses and condominiums, as well as mobile homes and houseboats.

• Does new home construction qualify? If you hire a contractor to construct a principal residence on a lot you already own, the date you first occupy the house is treated as the purchase date and must be after November 6, 2009 and on or before April 30, 2010.

More information about the Move-Up/Repeat Homebuyer Tax Credit

First Time Home Buyer Tax Credit: What You Need To Know

• Deadline For First Time Home Buyer Tax Credit Has Been Extended:  If you have not owned a principal residence during the last three-years and you plan to purchase a primary residence, you now have until April 30, 2010 to purchase a home and qualify for an $8,000 tax credit.  You must complete your home purchase by June 30, 2010 to qualify.

• The Income Limits Are Higher: If you are a qualifying first time home buyer purchasing a principal residence after November 6, 2009, the new income limit is $125,000 for single taxpayers and the limit for married couples filing joint returns is $225,000.

• The Income Limit for Earlier Home Purchases is Lower:  If you are a first time home buyer and you purchased a principal residence after January 1, 2009 but before November 6, 2009, the income limit is $75,000 for single taxpayers and $150,000 for married taxpayers filing joint returns.

More information about the First Time Home Buyer Tax Credit Extension

If you are interested in beginning a home search, contact Jebb & Driggin Realty today at (617) 859-0300.

Always consult your tax advisor for information relating to your specific circumstances.

Filed under: First Time Home Buyer, National Real Estate News, First Time Home Buyer Tax Credit, Move-up/Repeat Home Buyer Tax Credit

FTHB Tax Credit Extension

Congress finished action Thursday on the extension and expansion of the Home Buyer’s Credit.

Basic provisions are:

• Extension of the Credit of $8,000 for First Time Home Buyers (Actually, defined as those people who have not owned a home in the last three years).
• New Credit of up to $6,500 for Buyers who have owned their current homes for at least five years.
• Limited to purchase of Primary Residence, costing up to $800,000; no vacation homes allowed.
• The Credit is phased out for individuals with incomes above $125,000 and for joint filers above $225,000. This is a substantial increase in the income limits; and there is still some credit amount above
  those limits.
• Buyers must sign purchase agreements by April 30, 2010 and close before June 30, 2010. The sponsors of the bill have pledged that there would be no further extensions.

Filed under: First Time Home Buyer, National Real Estate News, First Time Home Buyer Tax Credit

Are You Better Off Buying?

According to an article in this morning’s Globe, the average rent in the Greater Boston area is now $1,629 per month.  Rent is now 11% more than four years ago, even though housing values dropped about 18% during the same period.

Today’s first time home buyers have the added benefit of an $8,000 tax credit and historic low interest rates, which means that for some, purchasing a home not only offers a chance to build equity, it may actually cost less per month than renting.

For more information about the home buying process and current property listings, register to start your home search.

Filed under: Benefits of Owning a Home, First Time Home Buyer, Equity, First Time Home Buyer Tax Credit, Home Buyer Advice, Interest Rates, Renting vs. Buying

New Housing Program Announced

Help is on the way for low-moderate-income families to purchase homes or attain affordable rental housing.

According to the Wall Street Journal, 10/19/09, Jessica Holzer reported a new effort by the Obama Administration to “prop up the housing market by restoring financing to state and local housing agencies.”

This new program could support several hundred thousand new mortgages to first-time home buyers next year and help struggling borrowers refinance to more affordable mortgages through state and local programs.

Fannie Mae and Freddie Mac will be providing short term financing to state and local agencies backed by the Treasury.

Treasury Secretary, Timothy Geithner, announced in a press release that “this initiative is crucial to helping working families maintain access to affordable rental housing and home ownership in tough economic times.”

Read the full-length article

Filed under: First Time Home Buyer, National Real Estate News, Fannie Mae, Freddie Mac

October Frightful News: First Time Homebuyers Deadline Looming

The deadline for the First Time Homebuyer Tax Credit is looming. To be eligible for this $8,000 tax credit, you must close on a property no later than November 30, 2009. Finding the right home takes time, and once your offer is accepted, the closing process can take 30 to 60 days.

Here are our recommendations on how to expedite the process:

Have a Pre-Approval Letter In Hand

A Pre-Approval Letter is a conditional letter that confirms what mortgage amount you qualify for.  When the letter accompanies the offer, it makes the offer more attractive to the Seller, and pre-approval can help expedite your financing when you offer is accepted.

Look at Regular Sale Properties

Sale of a “short sale” or foreclosed property typically takes much longer than a regular sale.  The bank or lending institution handling the sale may wait to receive many offers and are often handling many transactions at once.  It is our opinion that they likely will not respond in time for you to close by November 30.

Push For Offer Acceptance by October 20, 2009

If you are seriously considering a property, have your Exclusive Buyers Agent submit your offer immediately.  One you have the accepted offer in hand, you will have time to perform a thorough review of the property and terms, without the worry of the Seller accepting an offer from another prospective Buyer.

Visit the Offical Website: More information about the Federal Housing Tax Credit

Filed under: First Time Home Buyer, First Time Home Buyer Tax Credit, Foreclosure, Home Buyer Advice, Mortgage Pre-Approval, Offer To Purchase Real Estate, Short Sale

$8,000 Tax Credit: Do I Qualify?

Am I Considered a First Time Home Buyer?
You are considered a first time home buyer if you have not owned a principal residence during the three year period prior to your purchase. Ownership of a vacation home or rental property that is not used as a principle residence does not disqualify you.

What is a Tax Credit?
A tax credit is different than a tax deduction.  A deduction reduces the amount of income on which you owe tax.  This is a tax credit – reducing your income taxes by dollar amount. If you do not owe income tax of over $8,000 you will receive a refund. If you owe over $8,000 this will be applied to the amount owed.

How is the Amount of the Tax Credit Determined?
Any home purchased over $80,000 qualifies for the full $8,000.  A house costing less than $80,000 qualifies for a credit in the amount of 10% of purchase price.

Are There Income Limits?
If you are a single or the head of household, your annual income must be less than 75K.  If you are married or filing jointly, your income must less than 150K.

Will A Condo Purchase Qualify?
Property type does not affect your eligibility.  Whether it’s a condo, single family, townhouse or even a house boat, it just needs to be your principle residence.

More information about the Federal Housing Tax Credit

Filed under: First Time Home Buyer, First Time Home Buyer Tax Credit