For Sellers · Real Estate News

Styling Your Home To Sell Quickly

In this competitive market, it is important to think about ways to set your home ahead of the pack. This article from the National Association of Realtors has some great suggestions.

A sneak peek below. What a difference!

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Real Estate News

Frequently asked questions according to the National Association of Realtors.

In 2009, Congress increased the tax credit from $7500 to $8000 and made serveral additional improvements.  This revised $8000 tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009. Below are just a sampling of some the frequently asked questions about this new tax credit.

1. So what happens if the purchaser is eligible for an $8000 credit but their entire income tax liability for the year is only $6000.

    This tax credit is what’s called “refundable” credit. Thus, if the eligible purchaser’s total tax liability was $6000, the IRS would send the purchaser a check for $2000. Most taxpayers determine their tax liability by referring to tables that the IRS prepares each year.

2. Do individuals with incomes higher than the $75,000 or $150,000 limits lose all the benefts of the credit?

Not always. The credit phases -out between $75,000- $95,000 for singles and $150,000 – $ 170,000 for married filing joint. The closer a buyer comes to the maximum phase-out amount, the smaller the credit will be.  The law provides a formula to gradually withdraw the credit. Thus, the credit will disappear after an individuals income reaches $95,000 (single return) and $170,000 (joint return).

3. What’s the definition of “principal residence?’

    Generally, a principal residence is the home where an individual spends most of his/her time (generally defined as more than 50%). It is also defined as “owner occupied” housing. The term includes single-family detached housing, condos or co-ops, townhouses or any similar type of new or existing dwelling.  Even some houseboats or manufactured homes count as principal residences.

4. Can I use my credit amount as part of my downpayment?

    NO.

5. Do I have to repay the 2009 tax credit?

    NO. There is no repayment for 2009 tax credits.

These are just a few of the questions asked of NAR regarding the 2009 tax credit. If you didn’t see your questions here please give me a call and I will see if it is one of the ones I didn’t put up on my blog.  Or will see if I can find the answer.  Look forward to hearing from you.  206.612.6881