In this day of technology we are finding that more and more people are looking at houses. And never leaving their house(apartment)!
Today's buyers want a link... a website... a URL... They want to "sneak" into your home without you knowing it. They want to take a look without inconveniencing you. So your Realtor hired a really good photographer/videographer to post your home to that wonderful resource, the internet.
Don't get me wrong here, because I absolutely LOVE the internet. But I have seen on more than one occasion a young couple walk into a house that they had seen pics on line and turn to me and say, "Wow! It looked a lot better than this on line!" But I have also heard this: "Wow. I wasn't sure I wanted to see this house based on the pictures, but you know what? I'm glad we came..."
You see my point right?
I think the best way for you to make a decision on a house is to GO LOOK AT IT. And don't eliminate it solely on the pics or video you saw on line. You might be pleasantly surprised.
Think about this. It's a big buy. You're not buying a stereo system or even a car. It's going to be your home! Your castle! You are going to be there every day for quite a while.
Take the time to go look. You don't have to stay a long time, but you might!
Showing posts with label 1st time buyer. Show all posts
Showing posts with label 1st time buyer. Show all posts
Saturday, December 31, 2011
Friday, July 30, 2010
Buy A House That's NOT for sale!
So, you've looked and you've looked, and you've looked. Your agent is great. Stays in touch and keeps feeding you leads. But nothing seems to do the trick.
If your agent hasn't already done it let's start thinking about buying a house that ISN'T for sale.
That's right. ISN'T for sale.
What is the harm with approaching the owners of a house that is not on the market and suggesting that if they ever gave any thought to selling their home maybe we have a buyer? I tell you I've done it. And more often than not I have gotten no response. And on occasion I've been more or less told to take a hike.
That's probably why you don't want to "cold call" homeowners and it's also why you should put this project in the lap of your agent... But if you can I.D. a couple of houses that you think you might be interested, your agent can "go to work" !
Your agent will know the way to put together a pitch that will illicit a response... say and explain the right things, so as to pique their interest, and hopefully describe your dilemma and situation to get you an opportunity.
You know what's good about this? You aren't in competition with other buyers. It's a quiet and less stressful sequence of discussions and meetings.
It will never be a "slam dunk". Who knows if it will work. But, hey.... you'll never know unless you try.
If your agent hasn't already done it let's start thinking about buying a house that ISN'T for sale.
That's right. ISN'T for sale.
What is the harm with approaching the owners of a house that is not on the market and suggesting that if they ever gave any thought to selling their home maybe we have a buyer? I tell you I've done it. And more often than not I have gotten no response. And on occasion I've been more or less told to take a hike.
That's probably why you don't want to "cold call" homeowners and it's also why you should put this project in the lap of your agent... But if you can I.D. a couple of houses that you think you might be interested, your agent can "go to work" !
Your agent will know the way to put together a pitch that will illicit a response... say and explain the right things, so as to pique their interest, and hopefully describe your dilemma and situation to get you an opportunity.
You know what's good about this? You aren't in competition with other buyers. It's a quiet and less stressful sequence of discussions and meetings.
It will never be a "slam dunk". Who knows if it will work. But, hey.... you'll never know unless you try.
Sunday, February 7, 2010
How Do I Get My First Time Home Buyer's Credit?
It's getting that time of year where some of our clients... first time home buyers especially in this context... are doing their taxes and want to know about how to get the First time Home Buyer's Credit... Here's some stuff...
Both first-time home buyers and long-time owners can qualify for a credit. A first-time home buyer for the purposes of the credit is someone who has not owned a home (or whose spouse who has not owned a home) during the three-year period that ends on the date of purchase of the new home. If you purchased on November 30, 2009 you must not have owned a home since December 1, 2006. The earliest date to qualify for this credit is January 1, 2009.
To qualify for the credit given to long-time home owners, you must have owned your current home for any five five year period during the eight year period ending on the date of purchase of the new home. The earliest home purchase date to qualify for this credit is November 8, 2009.
For either credit, if your date of purchase is in May or June 2010, you will need to prove you entered into a contract to buy the house before May 2010. Read below to determine what documentation is necessary.
Members of the military and the “intelligence community” have an extra year to purchase a house and qualify for the credit.
Restrictions for qualifying for the credit
Even if you qualify as a first-time home buyer or a long-time home owner and you have purchased a qualifying house within the permitted time frame, you might still not qualify for the credit.
You will not qualify if:
You purchased your house after November 6, 2009, the price of the house may not be more than $800,000;
Your modified adjusted gross income is $95,000 ($170,000 if you are married filing jointly) or more and you purchased your house before November 7, 2009. A phase-out of the credit begins with a MAGI of $75,000 (or $150,000);
Your modified adjusted gross income is $145,00 ($245,000 if you are married filing jointly) or more and your purchased your house after November 6, 2009. A phase-out of the credit begins with a MAGI of $125,000 (or $225,000);
Someone else claims you as a dependent on their tax return;
You purchased your house after November 6, 2009, and were under the age of 18 on the date of purchase;
You are a nonresident alien;
Your house is located outside the United States;
You sell your home or it ceases to be your main residence before the end of the year in which you purchase it;
You received the house as a gift or inheritance;
You acquired your home from a relative or a related corporation or partnership;
1. You need IRS form 5405 "First Time Homebuyer Credit and Repayment of The Credit. The form will guide you through the process, ensure you qualify for a credit, and determine the amount of your credit.
2. Collect your required documentation. You will need the Form HUD-1 Settlement Statement or other settlement statement outlining the names and signatures of all parties to the sale, the property address, the price, and the date of purchase. If you do not have a settlement statement, as you might not if you purchase a newly-constructed home, attach your certificate of occupancy.
If you are under contract but have not taken occupancy of the house by the time you file your taxes — and you still qualify under the date restrictions above — include pages from your signed contract including the signatures and names of all parties, the property price, the address, and the contract date.
If you qualify as a long-time homeowner rather than a first-time home buyer, include Form 1098 (Mortgage Interest Statement), property tax records, or homeowners’ insurance records. The forms must cover a full consecutive five year period within the eight years ending on the date of the purchase. Be sure to send copies of these forms, not the originals.
3. Complete your Form 1040. Include your bottom line on Form 5405 on the appropriate line on your income tax return. On the 2009 Form 1040 return, it's line 67. If you use the Short Form or Form 1040EZ you won't be able to do this.
It may not be a bad idea to hire a professional to assist you with or to do your taxes if you are skittish about these sort of things... It is a considerable amount of money and you want to make sure you get it right! Otherwise rock on!
Both first-time home buyers and long-time owners can qualify for a credit. A first-time home buyer for the purposes of the credit is someone who has not owned a home (or whose spouse who has not owned a home) during the three-year period that ends on the date of purchase of the new home. If you purchased on November 30, 2009 you must not have owned a home since December 1, 2006. The earliest date to qualify for this credit is January 1, 2009.
To qualify for the credit given to long-time home owners, you must have owned your current home for any five five year period during the eight year period ending on the date of purchase of the new home. The earliest home purchase date to qualify for this credit is November 8, 2009.
For either credit, if your date of purchase is in May or June 2010, you will need to prove you entered into a contract to buy the house before May 2010. Read below to determine what documentation is necessary.
Members of the military and the “intelligence community” have an extra year to purchase a house and qualify for the credit.
Restrictions for qualifying for the credit
Even if you qualify as a first-time home buyer or a long-time home owner and you have purchased a qualifying house within the permitted time frame, you might still not qualify for the credit.
You will not qualify if:
You purchased your house after November 6, 2009, the price of the house may not be more than $800,000;
Your modified adjusted gross income is $95,000 ($170,000 if you are married filing jointly) or more and you purchased your house before November 7, 2009. A phase-out of the credit begins with a MAGI of $75,000 (or $150,000);
Your modified adjusted gross income is $145,00 ($245,000 if you are married filing jointly) or more and your purchased your house after November 6, 2009. A phase-out of the credit begins with a MAGI of $125,000 (or $225,000);
Someone else claims you as a dependent on their tax return;
You purchased your house after November 6, 2009, and were under the age of 18 on the date of purchase;
You are a nonresident alien;
Your house is located outside the United States;
You sell your home or it ceases to be your main residence before the end of the year in which you purchase it;
You received the house as a gift or inheritance;
You acquired your home from a relative or a related corporation or partnership;
1. You need IRS form 5405 "First Time Homebuyer Credit and Repayment of The Credit. The form will guide you through the process, ensure you qualify for a credit, and determine the amount of your credit.
2. Collect your required documentation. You will need the Form HUD-1 Settlement Statement or other settlement statement outlining the names and signatures of all parties to the sale, the property address, the price, and the date of purchase. If you do not have a settlement statement, as you might not if you purchase a newly-constructed home, attach your certificate of occupancy.
If you are under contract but have not taken occupancy of the house by the time you file your taxes — and you still qualify under the date restrictions above — include pages from your signed contract including the signatures and names of all parties, the property price, the address, and the contract date.
If you qualify as a long-time homeowner rather than a first-time home buyer, include Form 1098 (Mortgage Interest Statement), property tax records, or homeowners’ insurance records. The forms must cover a full consecutive five year period within the eight years ending on the date of the purchase. Be sure to send copies of these forms, not the originals.
3. Complete your Form 1040. Include your bottom line on Form 5405 on the appropriate line on your income tax return. On the 2009 Form 1040 return, it's line 67. If you use the Short Form or Form 1040EZ you won't be able to do this.
It may not be a bad idea to hire a professional to assist you with or to do your taxes if you are skittish about these sort of things... It is a considerable amount of money and you want to make sure you get it right! Otherwise rock on!
Monday, November 30, 2009
First time buyers! How about a two family?
You know, we are seeing quite a few young buyer-wannabes expressing some frustration. The banks are a little tougher on them. It really is harder to get approved for a mortgage these days.
So, some of the agents in my office were talking the other day and they are offering an alternative to these young first timers.... How about a two, or maybe three, or even four unit? You live in it, and collect rents from the other unit(s)! The banks will consider the potential rents as part of your qualifying... it will vary from institution to institution as to how much of the income can be projected to be used in your qualifying for a mortgage.
Now, you may notice I stopped at FOUR units here. That's because once you go to five or more units most banks will consider the property to be of a "commercial" nature and their loan packages vary significantly. They usually want a larger down payment (20 %)... they also may change the length of the loan and their right to call the note.... the interest rate may be subject to market indexes as well.
But think about this... You buy a house for say, 175K.... put 5% down... So you have a principal of $166,250.... At 5% rate you are looking at $892.47 principal and interest for your payment. Of course you will have to pay property taxes and insure the building... But think about how much you are paying in rent at your apartment right now.. $450?... $600?.... $800? If someone else is paying that to YOU... what's your net cost for living in the building you own... and the tax advantages you are getting... and the appreciation of the value building!
So you buy the building, live in it while you are building up equity and saving money for that single family home down the road....
Now this is a blog. It's not a detailed scenario that covers all the aspects... but it might be an idea that you may want to pass by your real estate agent!
Pretty good way to get started! Call your favorite agent today!
So, some of the agents in my office were talking the other day and they are offering an alternative to these young first timers.... How about a two, or maybe three, or even four unit? You live in it, and collect rents from the other unit(s)! The banks will consider the potential rents as part of your qualifying... it will vary from institution to institution as to how much of the income can be projected to be used in your qualifying for a mortgage.
Now, you may notice I stopped at FOUR units here. That's because once you go to five or more units most banks will consider the property to be of a "commercial" nature and their loan packages vary significantly. They usually want a larger down payment (20 %)... they also may change the length of the loan and their right to call the note.... the interest rate may be subject to market indexes as well.
But think about this... You buy a house for say, 175K.... put 5% down... So you have a principal of $166,250.... At 5% rate you are looking at $892.47 principal and interest for your payment. Of course you will have to pay property taxes and insure the building... But think about how much you are paying in rent at your apartment right now.. $450?... $600?.... $800? If someone else is paying that to YOU... what's your net cost for living in the building you own... and the tax advantages you are getting... and the appreciation of the value building!
So you buy the building, live in it while you are building up equity and saving money for that single family home down the road....
Now this is a blog. It's not a detailed scenario that covers all the aspects... but it might be an idea that you may want to pass by your real estate agent!
Pretty good way to get started! Call your favorite agent today!
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