Buyers and The Tax Credit
Save Now With The Home Buyer Tax Credit
Are You Taking Advantage of The Home Buyer Tax Credit? - The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and through April 30, 2010. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
Click here for more information from the IRS on this issue
Click here for IRS Form 5405 Homebuyer Tax Credit
Why Use an ABR®: REALTORS® Experienced in Buyer Representation
Buying a home is no small matter. Besides being the largest financial transaction you may ever undertake, it's probably also the most complex. There are many good reasons to work with a qualified real estate professional-especially a trained professional who has earned the Accredited Buyer's Representative (ABR®) designation, representing best-in-class buyer services.
When you look for an ABR® before you look for a home, you'll be served, not sold. Your interests become their interests. And you'll be working with someone who has gone the extra mile by completing specialized training in delivering the best in buyer-representation services. Plus, a REALTOR® who has an ABR® Designation also has an established track record, with proven experience in representing the concerns of homebuyers.
The ABR® Designation is awarded through the Real Estate Buyer's Agent Council , or REBAC, which was founded in 1988 to promote superior buyer-representation skills and services. REBAC is an affiliate of the National Association of REALTORS ® (NAR).
Why it is important to hire your own Agent?
For most people, purchasing a home will be the most expensive single investment they will make in their entire life. The home buying process is a complex one, and can easily become overwhelming for individuals who do not have a lot of experience in the home buying field. You may know where you want to live, the style of home you wish to purchase, the school zone you want to be in, and even the price of the home you can afford. Knowing the answer to these questions will get you started in your search to find a new home. But, before you sign on the dotted line, and commit to a huge financial investment that will impact your future for many years to come, it is wise to do some homework! You need to learn some of the basic information on legal matters concerning your home purchase.
One of the first, and possibly the most important lessons you need to learn is that the listing agent represents the seller. The seller hired the listing agent to work for them and to sell their home. The seller is the client of the listing agent and it is the listing agents job to get the most money for their clients home. If you contact the listing agent and work direct with that agent on purchasing their listing, then you must either:
1) Agree to purchase the home without representation. You are a customer of the listing agent but not a client. The listing agent does not have any obligation to work with you to secure the best deal for you in purchasing the home. On the contrary, the listing agent is required to work for the seller to convince you to pay the most money for their home and close in the most favorable terms for the seller.
Or
2) The listing agent, and seller, must both agree in writing, that the agent will revert to a Facilitator or Dual Agent. What does this mean? It basically means that you, as the buyer, will not have any representation and the listing agent will help neither party negotiate the best deal. The listing agent cannot release any confidential information to either party and basically just facilitates passing information back and forth between buyer and seller. But, keep in mind that the listing agent has had a relationship established with the seller for some time. It is very difficult for a listing agent to truly be a facilitator and not show favoritism toward the seller during negotiations.
Why would you risk making the largest single investment in your life by representing yourself? The real estate commission is already established when the listing is secured by the listing agent. The seller has already agreed up front to a set amount of commission. This commission is paid by the seller at closing and not the buyer. It costs the buyer ZERO dollars in commission to hire their own Realtor and secure knowledgeable and professional representation for themselves during negotiations!
I hope you can see that it is so important to work with a qualified, experienced, and knowledgeable Buyers Agent when purchasing your next home. Form a relationship with a Realtor that you trust and work with them throughout the entire process of buying your new home.I will help you utilize the most cutting-edge technology available in searching for your next home and make sure that you are aware of all the great listings that come on the market ~ as SOON as they hit the market! In addition, you will find that I am committed to providing customer service that is head and shoulders above the competition. My commitment to customer service goes far beyond the signing of the contract. It is my goal to make sure you are thrilled with your home purchase and help you resolve any problems that might even arise after the closing date! I want to earn your business as your current and future Realtor and also earn the referrals of your family and friends!
Whether you are interested in purchasing your first home or have achieved a level of success that allows you to purchase a grand estate home, I am available to help you make a wise investment and help you make the best decisions on buying or building your next new home. From condos to mansions, please call MARY PALMA, Realtor, ABR at 571-259-3009 when you are ready to work with a qualified Buyers Agent. After all, it costs you nothing to hire your own excellent representation!
Advice for First-Time Buyers
* Pre-Qualification: Meet with a mortgage broker and find out how much you can afford to pay for a home. For pre-qualification click on "Palma Group Advantage" to find mortgage lender Carlos Larrazabal - Met Life Home Loans .
* Pre-Approval: While knowing how much you can afford is the first step, sellers will be much more receptive to potential buyers who have been pre-approved. You'll also avoid being disappointed when going after homes that are out of your price range. With Pre-Approval, the buyer actually applies for a mortgage and receives a commitment in writing from a lender. This way, assuming the home you're interested in is at or under the amount you are pre-qualified for, the seller knows immediately that you are a serious buyer for that property. Costs for pre-approval are generally nominal and lenders will usually permit you to pay them when you close your loan.
* List of Needs & Wants: Make 2 lists. The first should include items you must have (i.e., the number of bedrooms you need for the size of your family, a one-story house if accessibility is a factor, etc.). The second list is your wishes, things you would like to have (pool, den, etc.) but that are not absolutely necessary. Realistically for first-time buyers, you probably will not get everything on your wish list, but it will keep you on track for what you are looking for.
* Representation by a Professional: Consider hiring your own real estate agent, one who is working for you, the buyer, not the seller.
* Focus & Organization: In a convenient location, keep handy the items that will assist you in maximizing your home search efforts. Such items may include:
1. One or more detailed maps with your areas of interest highlighted.
2. A file of the properties that your agent has shown to you, along with ads you have cut out from the newspaper.
3. Paper and pen, for taking notes as you search.
4. Instant or video camera to help refresh your memory on individual properties, especially if you are attending a series of showings.
5. Location: Look at a potential property as if you are the seller. Would a prospective buyer find it attractive based on school district, crime rate, proximity to positive (shopping, parks, freeway access) and negative (abandoned properties, garbage dump, source of noise) features of the area?
* Visualize the house empty & with your decor: Are the rooms laid out to fit your needs? Is there enough light?
* Be Objective: Instead of thinking with your heart when you find a home, think with your head. Does this home really meet your needs? There are many houses on the market, so don't make a hurried decision that you may regret later.
* Be Thorough: A few extra dollars well spent now may save you big expenses in the long run. Don't forget such essentials as:
1. Include inspection & mortgage contingencies in your written offer.
2. Have the property inspected by a professional inspector.
3. Request a second walk-through to take place within 24 hours of closing.
4. You want to check to see that no changes have been made that were not agreed on (i.e., a nice chandelier that you assumed came with the sale having been replaced by a cheap ceiling light).
* All the above may seem rather overwhelming. That is why having a professional represent you and keep track of all the details for you is highly recommended. Please email me or call me directly to discuss any of these matters in further detail.
