Real Estate in the Piedmont Triad

First-Time Homebuyer Federal Tax Credit

2008-08-19T05:08:00.000-07:00

As part of the “Housing and Economic Recovery Act of 2008” that was recently signed into law, Congress has created a new, temporary federal income tax credit to provide an incentive for first-time homebuyers.

The highlights of this federal tax credit are as follows:
The amount of the federal tax credit is for 10% of the cost of the home, up to a maximum credit of $7,500 . In essence, this is an interest-free loan that enables consumers to receive a tax credit on a dollar-for-dollar basis on their personal income tax return in the calendar year following the year of closing on their home. They begin paying the tax credit back the year after that and make equal installments during the next 15 years. If the homeowner sells the home at any point during the 15-year payback period, then the remaining amount is recaptured, unless they sell the home at a loss, at which point the balance is forgiven.

e.g., If a home costs $65,000, the allowable credit would be $6,500. If a home costs $120,000, then the allowable credit would be $7,500.

Eligibility is for first-time homebuyers only. In this case, a first-time homebuyer is defined as an individual who has not owned a primary home at any time during the past three years, but who may have done so previously. Although certain income limits do apply, the amount of the credit is the same for all taxpayers, married or single.

Individuals, whose Form 1040 filing status is single (or head of household), are eligible for the tax credit if their income is no more than $75,000. Individuals who file a joint return may have no more than $150,000 in income.
Individuals with incomes between $75,001 and 94,999 (single) or $150,001 and $169,999 (joint returns) are eligible for a partial tax credit.
Individuals with incomes greater than $95,000 (single) or $170,000 (joint return) are not eligible for this tax credit.

The federal income credit can be claimed on one’s individual or joint tax return for the purchase of any single-family home between April 9, 2008 through July 1, 2009. Individuals should consult a professional tax advisor for exact tax calculations.

e.g., If an individual’s actual tax liability was $5,000, then after the tax credit is applied the purchaser would receive a total refund of $2,500. The refundable amount is the difference between the $7,500 tax credit and the amount of one’s tax liability.

e.g., If an individual’s actual tax refund was $2,000, then after the tax credit is applied the purchaser would receive a total refund of $9,500.

This tax credit is required to be repaid without interest in equal installments of 6.67% of the total credit each year for 15 years beginning the year after the tax credit is claimed. $7,500 x 6.67% = $500 annual repayment for 15 years.

e.g., If a homebuyer claims the $7,500 credit in 2009 on their federal income tax return for a closing that occurred in 2008, then the credit is received in 2009, so repayment begins in 2010 with an annual repayment amount of approximately $500 a year.

Brad Lawrence - Broker/REALTOR
Multi-Million Dollar Producer
ERA Premier Realty
NC HomeTeam Inc
Ranked #1 ERA Team in NC for 2008 & majority of 2007
Website: www.NC-Homes-For-Sale.com
Toll Free: 866-220-6458
Brad's Cell: 336-909-1293
Angie's Cell: 336-909-2638
Fax: 866-233-4314
Email: Brad.Lawrence@ERA.com
BLOG - www.nc-homes-for-sale.blogspot.com
We serve the Whole Piedmont Triad Area!
Buyers - Sign up for your own FREE custom MLS search account at http://nchomesforsale.listingbook.com/?node=3
Offices in Advance & Mocksville.
Click the following link for information about Working With A Real Estate Agent:
http://www.ncrec.state.nc.us/publications-bulletins/WorkingWith.html

Home Warranties

2008-08-07T03:46:00.000-07:00

If a seller is not offering a home warranty, definitely ask for one in the offer. We always use American Home Shield - www.ahswarranty.com
Our buyers have benefited from having a home warranty especially when it comes to heating and cooling system. Each service call has a $60 deductible, but is definitely worth it when all service calls are at least $75 plus parts and labor. Make sure you get the add-on coverage for pre-existing conditions, sometimes the service technician may deem the problem as a pre-existing condition, sometimes home inspectors do not catch every little thing, then AHS will cover the repair if you have the pre-existing condition add-on package. We just bought a home and have already used AHS twice, glad we did, one call was for the heat pump.

Brad Lawrence - Broker/REALTOR
Multi-Million Dollar Producer
ERA Premier Realty
NC HomeTeam Inc
Ranked #1 ERA Team in NC for 2008 & majority of 2007
Website: www.NC-Homes-For-Sale.com
Toll Free: 866-220-6458
Brad's Cell: 336-909-1293
Angie's Cell: 336-909-2638
Fax: 866-233-4314
Email: Brad.Lawrence@ERA.com
BLOG - www.nc-homes-for-sale.blogspot.com
We serve the Whole Piedmont Triad Area!
Buyers - Sign up for your own FREE custom MLS search account at http://nchomesforsale.listingbook.com/?node=3
Offices in Advance & Mocksville.
Click the following link for information about Working With A Real Estate Agent:
http://www.ncrec.state.nc.us/publications-bulletins/WorkingWith.html

Viewing neighborhoods on Google - New Cool Feature!

2008-06-20T04:07:00.000-07:00

You may already know about this already, but in case not, goto google maps and type in a home address, include city and state. Once Google finds the location, you will see a tab called "street view", a little man figure will appear at the location, click the figure and the neighborhood will pop up in a separate window. Then you will be able to scroll 360 degrees and pan all over the neighborhood. You can also drag the little man figure to another street. The "street view" feature is not available for all streets yet, Google is rolling out this feature for new areas everyday. If the streets are hilited in blue, then this feature is available.

If you find a home that you like, this is a great way to check out the surroundings in the neighborhood. It can save gas and time, it may reveal things in the neighborhood that you do not desire.

Brad Lawrence - Broker/REALTOR
Multi-Million Dollar Producer
ERA Premier Realty
NC HomeTeam Inc
Ranked #1 ERA Team in NC for 2008 & majority of 2007
Website: www.NC-Homes-For-Sale.com
Toll Free: 866-220-6458
Brad's Cell: 336-909-1293
Angie's Cell: 336-909-2638
Fax: 866-233-4314
Email: Brad.Lawrence@ERA.com
BLOG - www.nc-homes-for-sale.blogspot.com
We serve the Whole Piedmont Triad Area!
Buyers - Sign up for your own FREE custom MLS search account at http://nchomesforsale.listingbook.com/?node=3
Offices in Advance & Mocksville.
Click the following link for information about Working With A Real Estate Agent:
http://www.ncrec.state.nc.us/publications-bulletins/WorkingWith.html

Short Sale vs Foreclosure

2008-04-26T18:18:00.000-07:00

Short Sale may be an option to avoid foreclosure. If your behind on mortgage payments and facing foreclosure, call your lenders loss mitigation dept to see if they can assist you in a short sale. Your lender may take less than what is owed on your home. Your credit will be less damaged if your lender will take a short sale on your home. The loss mitigation will need a letter of hardship stating why you cannot make your mortgage payments, they also will need proof of insufficient income such as paystubs, bank statements, tax returns, etc. If an offer comes in on your home, the offer will have to be submitted to the loss mitigation dept for approval. It is a time consuming process, but with patience, it can be an alternative to foreclosure and preventing severe damage to your credit.

Brad Lawrence - Broker/REALTOR
Multi-Million Dollar Producer
ERA Premier Realty
NC HomeTeam Inc
Ranked #1 ERA Team in NC for 2008 & majority of 2007
Website: www.NC-Homes-For-Sale.com
Toll Free: 866-220-6458
Brad's Cell: 336-909-1293
Angie's Cell: 336-909-2638
Fax: 866-233-4314
Email: Brad.Lawrence@ERA.com
BLOG - www.nc-homes-for-sale.blogspot.com
We serve the Whole Piedmont Triad Area!
Buyers - Sign up for your own FREE custom MLS search account at http://nchomesforsale.listingbook.com/?node=3
Offices in Advance & Mocksville.
Click the following link for information about Working With A Real Estate Agent:
http://www.ncrec.state.nc.us/publications-bulletins/WorkingWith.html

How to avoid foreclosure on your home.

2008-04-06T05:21:00.000-07:00

1. Always be in touch with the bank
The bank rather seeing you keeping your house than they do. They are in the business of loaning money, not possessing properties. If you are in difficulties making your monthly mortgage payment, talk to them, and work out something with them.

2. Always have the special arrangement in writing.
This is only good if the authorized personnel at the bank would give you this promise in writing. Verbal statement means nothing.

3. A longer pay-back period is better than loosing your home.
To spread out a longer pay-back period can ease the pain of present high monthly payment. This is good as a tool to temporarily cure the money crisis.

4. Do NOT feel ashamed !
Financial crises happen to everybody. What is the big deal ? Be brave, and deal with it logically. Be positive, and deal with it with confidence.

5. Get help from the government
The United States Federal Housing Administration (FHA) gives you the latest information on what the government can help. Goto: http://www.hud.gov/offices/hsg/fhahistory.cfm

6. Get help from people you can trust.
They could be your family members, or friends, as long as you feel comfortable talking to them about your situation.

7. Use valuable items to ask for better terms with the Bank.
They could be jewelry or antique that you have. If the bank is not interested in them, how about use them as security to borrow money from people you know ?

The above are suggestions that may work, but not guaranteed.

***************
Brad Lawrence - Broker/REALTOR
Multi-Million Dollar Producer
ERA Premier Realty
NC HomeTeam Inc
Ranked #1 ERA Team in NC for 2008 & majority of 2007
Website: www.NC-Homes-For-Sale.com
Toll Free: 866-220-6458
Brad's Cell: 336-909-1293
Angie's Cell: 336-909-2638
Fax: 866-233-4314
Email: Brad.Lawrence@ERA.com
We serve the Whole Piedmont Triad Area!
Buyers - Sign up for your own FREE custom MLS search account at http://nchomesforsale.listingbook.com/?node=3
Sellers - "We will sell your house, or ERA will buy it" (Call to see if your home qualifies)

Click the following link for information about Working With A Real Estate Agent:
www.ncrec.state.nc.us/publications-bulletins/WorkingWith.html

Buyers in the Piedmont Triad area.

2007-10-09T11:31:00.000-07:00

Yes, the market is slow in the Piedmont Triad area, but not dead like other areas in the country. Homes are selling in the Piedmont Triad area and buyer activity has increased. North Carolina is the #1 state for people relocating to. But one problem is the the buyers still have a home to sell in another state before they can buy here. Recent interest rate cuts should help out soon.

***************
Brad Lawrence - Broker/REALTOR
Multi-Million Dollar Producer
ERA Premier Realty
NC HomeTeam Inc
Ranked #1 ERA Team in NC for 2008 & majority of 2007
Website: www.NC-Homes-For-Sale.com
Toll Free: 866-220-6458
Brad's Cell: 336-909-1293
Angie's Cell: 336-909-2638
Fax: 866-233-4314
Email: Brad.Lawrence@ERA.com
We serve the Whole Piedmont Triad Area!
Buyers - Sign up for your own FREE custom MLS search account at http://nchomesforsale.listingbook.com/?node=3
Sellers - "We will sell your house, or ERA will buy it" (Call to see if your home qualifies)

Click the following link for information about Working With A Real Estate Agent:
www.ncrec.state.nc.us/publications-bulletins/WorkingWith.html