Extending Homebuyer Credit Delayed
October 30, 2009
Looks promising, but we have to wait until next week at the earliest for an update on the extension of the tax credit.
Oct. 30 (Bloomberg) — The U.S. Senate won’t vote until next week at the earliest on proposals to extend both an $8,000 tax credit for first-time homebuyers and unemployment benefits for the nation’s jobless. The administration endorses an extension.
Senate action was delayed by a Republican demand that a vote be allowed on an amendment to end the Treasury Department’s Troubled Asset Relief Program at the end of this year.
Senate Majority Leader Harry Reid, a Nevada Democrat, balked yesterday at the demand by Senate Minority Leader Mitch McConnell, a Kentucky Republican. Reid also took procedural steps to end debate and schedule Senate action on extending the homebuyer tax credit and the unemployment benefits.
“I think the first-time home-buyer credit is a great example of funding that’s helped to stabilize the housing market and should be extended,” Jared Bernstein, chief economist to Vice President Joe Biden, said on Bloomberg television. Treasury Secretary Timothy Geithner gave his support yesterday.
Lawmakers announced plans earlier this week to attach the tax-credit proposal to a pending bill on the unemployment benefits. The $8,000 tax credit, enacted earlier this year as part of the $787 billion economic stimulus package, is set to expire at the end of November.
April 30
The lawmakers want to extend the credit until April 30. Their proposal would also expand it to allow higher-income Americans and some who already own homes to qualify for the break.
Homebuyers who have lived in their prior residences for at least five years may receive a credit of $6,500 under the plan, said Senate Finance Committee Chairman Max Baucus. Also, couples earning as much as $225,000 and individuals as much as $125,000 would qualify for the extended break, Baucus said. That’s up from a $75,000 limit for individuals and $150,000 for couples.
“The success of the American economy is closely tied to the success of the housing market; by helping to stabilize the housing market, the homebuyer tax credit has helped to shore up the economy as it begins to recover,” said Baucus, a Montana Democrat. “This would enable an even greater number of potential homebuyers to take the credit.”
Drop in Prices
Lawmakers said they want to prevent home sales from slipping as the economy struggles to recover from the worst drop in home prices since the Great Depression.
More than 1.2 million borrowers have claimed $8.5 billion of the $13.6 billion set aside for the homebuyer tax credits this year, according to the Treasury Department. The Obama administration, in endorsing the extension yesterday, said the credit has helped stabilize the nation’s housing market.
The tax break “brought new families into the housing market and contributed to three consecutive months of rising home prices,” Geithner said in a statement.
The measure would require those receiving the tax break to remain in their new homes for three years and they would have to repay the credit if they don’t.
Those buying homes worth more than $800,000 wouldn’t be eligible for the credit, said Baucus. Lawmakers also said they won’t extend the break beyond the new April 30 deadline.
‘Last Extension’
“The American people should understand this — and the affected industries — this is the last extension,” said Senator Johnny Isakson, a Georgia Republican who cosponsored the plan. “Tax credits like this only work by creating the sense of urgency to take advantage of them.”
Isakson estimated the new plan would cost $10.2 billion. Senate Banking Committee Chairman Christopher Dodd said the plan wouldn’t add to the government’s budget deficit because lawmakers plan to finance it by delaying a tax break for multinational companies scheduled to take effect next year.
The bill that would include the tax-credit plan calls for extending unemployment benefits by 14 weeks in all states and by an additional six weeks in states with the highest jobless rates. That bill has been stalled for weeks because of an ongoing dispute between Reid and McConnell over amendments to the measure.
McConnell yesterday dropped his demands for votes on amendments related to immigration and the community activist group ACORN. He held firm on his push for the TARP-related amendment.
The proposal would remove Geithner’s ability to unilaterally extend the TARP program beyond its Dec. 31 expiration date to October 2010.
“It seems to me there should be a better time to have this debate,” Reid said.
Any legislation the Senate passed would have to be reconciled with a House-passed bill last month that didn’t include the tax-credit provisions and provides more limited unemployment benefits.
Reid said House Majority Leader Steny Hoyer, a Maryland Democrat, assured him that “they will accept what we’ve talked about with first-time homebuyers.”
To contact the reporters on this story: Dawn Kopecki in Washington at dkopecki@bloomberg.com; Brian Faler in Washington at bfaler@bloomberg.net
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- U.S. home sales at highest level in two years
Lawmakers Look at Home Buyer Tax Credit
October 21, 2009
Facing mounting concerns over the bleak outlook for jobs, more lawmakers on Capitol Hill last week showed interest in extending and possibly expanding the $8,000 first-time home buyer tax credit that is set to expire on Nov. 30.
However, political observers at NAHB cautioned that renewing the popular credit is still far from a done deal, with a number of lawmakers reluctant to act unless Congress imposes offsetting tax increases or spending cuts.
Sens. Johnny Isakson (R-Ga.) and Christopher Dodd (D-Conn.) were planning to offer an amendment extending and expanding the credit to a House-passed bill that would extend unemployment insurance benefits. Though it is unclear if the Senate will act on this proposal, NAHB will be urging senators to approve the amendment if it comes up for a vote.
The Isakson-Dodd proposal would extend the credit to June 30, 2010 and expand it to a wider circle of principal home buyers. It would also double the current income eligibility phase-outs to $150,000 for single taxpayers and $300,000 for married taxpayers filing a joint return.
Reporting on the Isakson-Dodd plan, the Associated Press cited NAHB statistics that extending the credit for one year and expanding it to all buyers of a principal residence would spur 383,000 additional home sales, create more than 347,000 jobs and generate $16.1 billion in wages and salaries and $12.1 billion in business income. Continue reading…
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Aging Boomers Seek Easy Living
September 30, 2009
The current housing downturn has taken some steam out of housing demand from the 55+ population, but a “55+ Housing: Builders, Buyers and Beyond” survey conducted in February by NAHB and the MetLife Mature Market Institute identifies significant opportunities in this market for both builders and remodelers at a time when a weak economy has forced households across the age spectrum to reassess how much housing they can afford.
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Learn the Inside Secret to Buying a Home
July 8, 2009
Thanks to my friend Mollie for this video.
Best Deal: 3402 Cranborne Chase Ct – East Cobb
May 8, 2009
From the soaring 2-story foyer to the expanded deck overlooking the private, professionally landscaped yard… Up to the spacious master retreat with luxurious spa tub… Down to the finished basement designed for comfortable living… 3402 Cranborne Chase Ct. is absolutely the best living space in Dorset!
The heart of this home is the generously proportioned kitchen featuring richly stained cabinet storage above and below solid surface counters. Chef touches include a gas cooktop and convection ovens. A built-in planning desk is the perfect base of operations for day-to-day living. There’s also a spacious buffet open to the family room and a breakfast bar for morning coffee.
And more… Linger over casual dining in the sun drenched keeping room featuring a gas fireplace and a wall of windows. Open to an expanded deck from the keeping room and the family room, the main level living area is ideal for entertaining.
Details
Property Amenities
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- Range/Oven
– Sink Disposal
– Microwave
– Dishwasher
– Fireplace
– Hardwood floors
– Vaulted Ceilings
– Basement
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- Deck
– Grass Lawn
– Yard
– Fenced Yard
– Secluded Setting
– Central A/C
– Central Heat
– Walk-in closet
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- Family room
– Living room
– Bonus/rec room
– Office/den
– Dining Room
– Breakfast nook
– Laundry area – inside
Community Amenities
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- Swimming Pool(s)
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- Tennis court(s)
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- High-speed Internet
What Home Buyers Want
February 17, 2009
What do home buyers want? Sellers want to know, so do real estate and mortgage professionals.
Today, I used an online tool to discover the answer to that question.
What Do Home Buyers Want?
Tomorrow, we answer the question, “What do home sellers want?”
How Secure Is Your Property Investment?
October 10, 2008
After Finding Your Home: The Home Inspection
It’s easy to make sure the home you’ve chosen is a smart buy. By having a home inspection, the home’s vital systems are checked. A home inspection allows you to purchase your home with confidence.
We will help you set up a home inspection after you have chosen the home you like.
Our recommendation is following these minimum standards when choosing a home inspector:
- Membership in ASHI (American Society of Home Inspectors) and adherence to its Standards of Practice and Code of Ethics.
- Written report at the time of inspection.
- UPDATE: Thanks to Nick Gromicko for noting our failure to mention NACHI (National Association of Certified Home Inspectors).
The typical inspection will take approximately three hours and will cover all major systems and components of your new home.
The conditions noted during the inspection are recorded in a detailed computerized report for your reference. Digital photographs will be included for many inspection items.
Our inspectors use a 400-item inspection plan to minimize your investment risk and provide you all the facts regarding the physical condition of your home.
We understand different buyers have different needs — first time buyers may have more questions than a seasoned real estate investor. The home inspectors we recommend take time to listen to our clients.
Our home inspectors are required to address all your concerns. We want you to make an informed investment decision without undue stress, costly repairs or delays.
What Does a Home Inspection Include?
Home inspections include a comprehensive visual examination of your home’s readily accessible elements and components.
Our home inspectors cover the:
- Structure
- Exterior
- Roof
- Plumbing
- Electrical
- Interior
- Appliances
- Crawl Spaces
- Heating & Air Conditioning
Photo Credit: Justin Baeder
Additional Services May Include:
- Radon Testing
- Stucco Inspections
- New Construction Inspections
Can I Attend the Home Inspection?
We strongly encourage our clients to attend the inspection and participate in the process. Being present for the inspection will:
- Help you fully understand the home inspection report.
- Receive an in-depth overview of the home you are purchasing.
- Learn how to properly maintain your investment.
Buying a home should be a good experience, one that makes you feel confident.
Contact us today. Before you know it, you’ll be the confident owner of the perfect home for your needs – in less time than if you searched on your own.
First Time Atlanta Home Buyers Receive Tax Credit
August 4, 2008
The Housing and Economic Recovery Act of 2008 was just signed by President Bush with some amazing benefits for first time home buyers.
When is the last time someone gave you a $7,500 loan, that has no interest, no payments for two years, and if you do not make enough profit when you sell, you do not have to pay back the loan?
That is what first time homebuyers get.
Call everyone you know who wants to buy their first home, this is too good to miss.
The risk of loss in buying now is on the government. In other parts of the country where real estate is going down in value, you can lose 10% of the value of the home (up to $7,500) and the loss is covered by the fact that you do not pay back the tax credit. The North Atlanta real estate first time buyers can afford is going up in value, so we are not as worried about the risk of loss. Even a home purchase that does not go up in value is covered by the tax benefit because you get $7,500 no matter what happens.
What’s the catch?
You have to buy your first house in three years before July 1,2009, not have super high income, not use bond financing and buy anywhere in the US, Not too difficult, right?
My thanks to Tim Burrell, Raleigh real estate broker, for his informative article on tax benefits to first time homebuyers.
Digging for Bargain Houses
March 25, 2008
Digging for Bargain Houses – Guest Post by Elisa Gumbel
I love finding a deal. In retail stores I love sorting through clearance bins digging for that perfect bargain. So, when my friends are looking to buy a house for a bargain, I am the first person they contact.
Digging through the Internet for the best house and the best deal is as fun, if not more fun, than digging for clothes. Because when you find that perfect house for someone, they keep it for a very long time and you have the satisfaction of knowing you made that match possible.
It is kind of like being the best dating site on the Internet, but for people and their homes.
I have to admit, as much as I love to dig through the Internet, I am not the most Internet savvy person. What makes me good at the “great home search” is that I don’t mind putting in the time and effort to sort through all the real estate information the Internet has to offer.
My searching standards are probably pretty archaic when it comes to surfing the net, so I start off very basic. I go straight to Google and enter “homes for sale + city, state”. The sites listed below are typical responses that I get on my first search.
- Homes.com
- Free Realty Info
Usually these sites are good for digging, and take some time to find something that peaks your interest, but there are lots of hidden jewels.
I do have one complaint though: finding where these houses and condos are located…
In most cases real estate agents attach a Google maps link to the home’s info page, and it appears to be very easy to figure out where these listings are located. But, when I try to orient myself to the location Google has directed me, I get confused and can’t figure out where it is. I finally realized that if Google doesn’t recognize an address, then it places you in the center of the listed city. And in Smyrna, apparently Creatwood drive is the epicenter.
One day I ended up driving all over Creatwood drive trying to find all the great houses I found that day, and that’s when I realized that none of them are there. I know that sounds like something simple to overcome, but it took me three separate house hunts to figure that one out.
As I am sure you can tell, I have always been intrigued by the Real Estate industry. Real estate used to seem like this thing of mystery, that one day I would have to walk into it blindly. But now that I have found my love for the house treasure hunt, I realize what a fun experience house hunting can be.
Before my revelation, Realtors always seemed like money-hungry people who were looking for a fast deal. Spend no time, waste no time. After my first experience with my Sister and my Realtor, Kathy Drewien, I realized how wrong I was.
Realtors are there to make sure you are happy, and to help you find exactly what you are looking for. They are a teacher, and counselor, and a confidant (tip: if they cannot fill those roles for you… get a new Realtor). As long as you are prepared to spend serious amounts of time dedicated to your search, they will be just as dedicated — if not more. After all, this is your home that you plan on living in, and you want to love every second!
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