Housing and Economic Recovery Act

What does it mean to homeowners? Here are the basics of the tax credit being offered:
  • a $7500 maximum (you can claim up to 10% of the purchase price) tax credit to either first time homebuyers OR if you haven't owned a home in the past three years
  • if your AGI (adjusted gross income) exceeds $75,000 for an individual or $150,000 as a couple, the amount you're eligible for begins to decrease
  • you must close by 6/30/09 on the home
  • the amount credited must be paid back over a period of 15 years
  • if you sell the home before the 15 year period (and you have no gain on the sale) you won't be expected to pay the credit back
  • http://www.federalhousingtaxcredit.com/ for more information

The bill also contains a provision to help homeowners with subprime loans refinance into a 30 year fixed FHA mortgage.

Below are a few articles I've come across that may help make sense of it all!







Your home not selling?

There are only a few reasons that your home may not be selling. First of all, how is the market in your neighborhood? Are homes selling? If so, then it has to be either location, price or condition. If your property sits in a desirable location in the subdivision, then look at the other possibilities. Have your agent pull comps weekly to make sure your home is still priced competitively, and make adjustments if necessary. This is even more important now with all the bank owned homes selling around us. If non of these things apply, then it MUST be the condition of the home. This could be just about anything, from odors to outdated finishes, mismatched carpeting, odd paint color choices, etc. The most important thing you can do to avoid the condition of your home being a factor, is to enlist the help of a few friends/family members/co-workers who will give you an honest opinion of your home. Things that potential buyers will notice are things that you probably won't because you're used to them (pet odors, messy paint job, etc.). I see it more now than in the past, but these are real problems that need to be addressed! An acquaintance of mine has a home on the market that just happened to fall into the criteria of a new buyer that I'm working with, so I showed it last week. The cat urine odor as soon as we walked in the door was horrid (the other disagreeable characteristics of the house don't even matter at this point). When I gave my feedback, she was in disbelief because no one else had told her this before. The house has been sitting empty, on the market for close to a year now............ Coincidence? I don't think so!