UPDATE 1-Senate votes to extend US home tax credit deadline
WASHINGTON June 16 (Reuters) - The U.S. Senate voted on Wednesday to give homebuyers another three months to settle on their contracts and take advantage of a popular tax credit that sparked a rush of activity in the housing market.
The Senate, with a vote of 60-37, accepted an amendment by Democratic Leader Harry Reid that extends the closing deadline to Sept. 30 for buyers who met the April 30 deadline to have a signed contract.
The current deadline requires buyers to close by June 30 to get the $8,000 tax credit for first-time homebuyers. Existing homeowners buying a new primary residence are eligible for a $6,500 credit.
Reid offered the measure as an amendment to a bill that would extend some popular business tax breaks and extend unemployment insurance benefits for jobless workers.
The proposal would not have a significant impact on future home sales as the extension would be only for home buyers who already had a contract in hand by April 30.
The popularity of the tax credit has caused some anxiety because settlement offices are inundated with buyers trying to close on transactions by the end of this month to get the tax break. (Reporting by Donna Smith; Editing by John O'Callaghan)
Monday, June 21, 2010
Wednesday, April 14, 2010
HomeDex North County Real Estate Report shows 22% increase in Median Sale Prices
The North San Diego Association of Realtors releases monthly housing statistics for North County San Diego area. The latest report was released and I think you will find the summary results quite impressive! Enjoy, Crista :)
- The March 2010 year-over median price for North San Diego County single family detached homes rose 28.85%, continuing a seven-month trend of rising year-over prices.
- The Median price in March 2010 for a North County single family detached home was $469,000.
- Median days-on-market for single family homes in North County decreased to 36 days compared to last month's 40 days.
- The number of North County single family detached homes sold increased 35.96% in March 2010 from February 2010. This continues a trend of year-over sales increases since summer 2008 (with exceptions of year-over decreases January 2010 and October 2009).
The North San Diego County Association of REALTORS® is committed to bringing you timely and relevant information of our region's housing market.
Sunday, April 4, 2010
CA First Time Homebuyer and New Home Buyer Tax Credit!
California has signed a new law which will give a tax credit to buyers who are first time homebuyers or new home buyers. Please see below for details. This is a great incentive since the Federal Tax credit for first time homebuyers expires soon! Please call me if you have questions. Crista :)
2010 Tax Credit for New Home / First-Time Buyer(If you are looking for more information regarding the 2009 New Home Credit, go to ftb.ca.gov/forms/2009/09_3528.pdf or search through the “Forms & Publications” tab at ftb.ca.gov.)
Important Update (04/01/10): The 2010 New Home Credit and First-Time Buyer Credit begins May 1, 2010.
The New Home / First-Time Buyer Credits are available only for purchases that close escrow on or after May 1, 2010.
Applying for the 2010 New Home/First Time Buyer tax credits: Applications must be submitted after escrow closes. The new application will be available by May 1, 2010. We will deny the application if the 2009 form is used or if we receive the 2010 application before May 1, 2010.
Check this page often. We will add updates as they become available.
General Information: These tax credits are available for taxpayers who purchase a qualified principal residence on or after May 1, 2010, and before January 1, 2011. Additionally, these tax credits are available for taxpayers who purchase a qualified principal residence on or after December 31, 2010, and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010. The purchase date is defined as the date escrow closes.
These tax credits are limited to the lesser of 5 percent of the purchase price or $10,000 for a qualified principal residence. Taxpayers must apply the total tax credit in equal amounts over 3 successive tax years (maximum of $3,333 per year) beginning with the tax year in which the home is purchased. The tax credits cannot reduce regular tax below tentative minimum tax (TMT). The tax credits are nonrefundable and unused credits cannot be carried over.
The total amount of allocated tax credit for all taxpayers may not exceed $100 million for the New Home Credit and $100 million for the First-Time Buyer Credit. However, since many taxpayers will not be able to utilize the entire tax credit, the legislation specifies that the $100 million cap for the New Home Credit will be reduced by 70 percent of the tax credit allocated to each buyer and the $100 million cap for the First-Time Buyer Credit will be reduced by 57 percent of the tax credit allocated to each buyer. We will allocate the tax credits on a first-come, first-served basis.
Only one tax credit is allowed per taxpayer. If a taxpayer qualifies for both tax credits, the law specifies that we will allocate the amount under the New Home Credit.
Taxpayers will not be eligible for either tax credit if any of the following apply:
The taxpayer was allowed a 2009 New Home Credit.
The taxpayer is under 18 years old. (A taxpayer who is married as of the date of purchase will be considered to be 18 if the spouse/registered domestic partner (RDP) of the taxpayer is 18 or older on the date of purchase.)
The taxpayer or the taxpayer’s spouse/RDP is related to the seller.
The taxpayer qualifies as a dependent of any other taxpayer for the tax year of the purchase.
New Home Credit: A qualified principal residence, for purposes of the New Home Credit, must:
Be a single family residence, either detached or attached.
Have never been occupied. Sellers must certify that the home has never been occupied in order for a taxpayer to receive an allocation of the credit.
Be eligible for the California property tax homeowner’s exemption.
Be occupied by the taxpayer as their principal residence for a minimum of 2 years immediately following the purchase.
Tax credit allocation:
A Certificate of Allocation will not be issued if:
The seller does not certify the home has never been occupied.
We do not receive the application and a copy of the properly executed settlement statement within 2 weeks (14 calendar days) after the close of escrow.
We receive the application or reservation request after the total tax credits available have been allocated.
FTB's determination may not be protested or appealed.
First-Time Buyer Credit: A qualified principal residence, for purposes of the First-Time Buyer Credit, must:
Be a single family residence, either detached or attached.
Be eligible for the California property tax homeowner’s exemption.
Be occupied by the taxpayer as their principal residence for a minimum of 2 years immediately following the purchase.
A first-time buyer is any individual (and the individual’s spouse/RDP, if married) who did not have an ownership interest in a principal residence during the preceding 3 year period ending on the date of the purchase of the qualified principal residence.
Tax credit allocation:
A Certificate of Allocation will not be issued if:
We do not receive the application and a copy of the properly executed settlement statement within 2 weeks (14 calendar days) after the close of escrow.
We receive the application after the total tax credits available have been allocated.
FTB's determination may not be protested or appealed.
Applications: We will accept applications beginning May 1, 2010. Do not use the 2009 application. We will post more information by May 1, 2010.
Reservations: Taxpayers who qualify for the New Home Credit may, but are not required to, reserve a tax credit prior to the close of escrow. Reservations will become important as we near the $100 million cap for homes that may not close escrow before the cap is reached. To reserve a tax credit, the taxpayer and seller need to complete, sign, and submit to us a reservation request to certify that they have entered into an enforceable contract on or after May 1, 2010, and on or before December 31, 2010. A copy of the signed contract must be included with the reservation request. We will post the reservation form and details about the process by May 1, 2010.
If you are only applying for the First-Time Buyer Credit, you will not be able to reserve the tax credit before escrow closes.
Claiming the tax credit:
The taxpayer must receive a Certificate of Allocation from us to claim the tax credit on their California personal income tax return. The Certificate of Allocation will state the maximum amount the taxpayer can claim listed by tax year.
The taxpayer should refer to the 2010 New Home / First-Time Buyer Credit Publication for instructions on claiming the tax credit (the publication will be available by December, 2010).
Special rules apply to married/RDP taxpayers filing separately, in which case each spouse/RDP is entitled to one-half of the tax credit, even if their ownership percentages are not equal. For 2 or more taxpayers who are not married/RDP, the tax credit amount will have already been allocated to each taxpayer occupying the residence on their respective tax credit allocation letter.
If the available tax credit exceeds the current year net tax, the unused tax credit may not be carried over to the following tax year.
The tax credit may not reduce regular tax below TMT.
The tax credit is not refundable.
Any disallowance of the tax credit may not be protested or appealed.
2010 Tax Credit for New Home / First-Time Buyer(If you are looking for more information regarding the 2009 New Home Credit, go to ftb.ca.gov/forms/2009/09_3528.pdf or search through the “Forms & Publications” tab at ftb.ca.gov.)
Important Update (04/01/10): The 2010 New Home Credit and First-Time Buyer Credit begins May 1, 2010.
The New Home / First-Time Buyer Credits are available only for purchases that close escrow on or after May 1, 2010.
Applying for the 2010 New Home/First Time Buyer tax credits: Applications must be submitted after escrow closes. The new application will be available by May 1, 2010. We will deny the application if the 2009 form is used or if we receive the 2010 application before May 1, 2010.
Check this page often. We will add updates as they become available.
General Information: These tax credits are available for taxpayers who purchase a qualified principal residence on or after May 1, 2010, and before January 1, 2011. Additionally, these tax credits are available for taxpayers who purchase a qualified principal residence on or after December 31, 2010, and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010. The purchase date is defined as the date escrow closes.
These tax credits are limited to the lesser of 5 percent of the purchase price or $10,000 for a qualified principal residence. Taxpayers must apply the total tax credit in equal amounts over 3 successive tax years (maximum of $3,333 per year) beginning with the tax year in which the home is purchased. The tax credits cannot reduce regular tax below tentative minimum tax (TMT). The tax credits are nonrefundable and unused credits cannot be carried over.
The total amount of allocated tax credit for all taxpayers may not exceed $100 million for the New Home Credit and $100 million for the First-Time Buyer Credit. However, since many taxpayers will not be able to utilize the entire tax credit, the legislation specifies that the $100 million cap for the New Home Credit will be reduced by 70 percent of the tax credit allocated to each buyer and the $100 million cap for the First-Time Buyer Credit will be reduced by 57 percent of the tax credit allocated to each buyer. We will allocate the tax credits on a first-come, first-served basis.
Only one tax credit is allowed per taxpayer. If a taxpayer qualifies for both tax credits, the law specifies that we will allocate the amount under the New Home Credit.
Taxpayers will not be eligible for either tax credit if any of the following apply:
The taxpayer was allowed a 2009 New Home Credit.
The taxpayer is under 18 years old. (A taxpayer who is married as of the date of purchase will be considered to be 18 if the spouse/registered domestic partner (RDP) of the taxpayer is 18 or older on the date of purchase.)
The taxpayer or the taxpayer’s spouse/RDP is related to the seller.
The taxpayer qualifies as a dependent of any other taxpayer for the tax year of the purchase.
New Home Credit: A qualified principal residence, for purposes of the New Home Credit, must:
Be a single family residence, either detached or attached.
Have never been occupied. Sellers must certify that the home has never been occupied in order for a taxpayer to receive an allocation of the credit.
Be eligible for the California property tax homeowner’s exemption.
Be occupied by the taxpayer as their principal residence for a minimum of 2 years immediately following the purchase.
Tax credit allocation:
A Certificate of Allocation will not be issued if:
The seller does not certify the home has never been occupied.
We do not receive the application and a copy of the properly executed settlement statement within 2 weeks (14 calendar days) after the close of escrow.
We receive the application or reservation request after the total tax credits available have been allocated.
FTB's determination may not be protested or appealed.
First-Time Buyer Credit: A qualified principal residence, for purposes of the First-Time Buyer Credit, must:
Be a single family residence, either detached or attached.
Be eligible for the California property tax homeowner’s exemption.
Be occupied by the taxpayer as their principal residence for a minimum of 2 years immediately following the purchase.
A first-time buyer is any individual (and the individual’s spouse/RDP, if married) who did not have an ownership interest in a principal residence during the preceding 3 year period ending on the date of the purchase of the qualified principal residence.
Tax credit allocation:
A Certificate of Allocation will not be issued if:
We do not receive the application and a copy of the properly executed settlement statement within 2 weeks (14 calendar days) after the close of escrow.
We receive the application after the total tax credits available have been allocated.
FTB's determination may not be protested or appealed.
Applications: We will accept applications beginning May 1, 2010. Do not use the 2009 application. We will post more information by May 1, 2010.
Reservations: Taxpayers who qualify for the New Home Credit may, but are not required to, reserve a tax credit prior to the close of escrow. Reservations will become important as we near the $100 million cap for homes that may not close escrow before the cap is reached. To reserve a tax credit, the taxpayer and seller need to complete, sign, and submit to us a reservation request to certify that they have entered into an enforceable contract on or after May 1, 2010, and on or before December 31, 2010. A copy of the signed contract must be included with the reservation request. We will post the reservation form and details about the process by May 1, 2010.
If you are only applying for the First-Time Buyer Credit, you will not be able to reserve the tax credit before escrow closes.
Claiming the tax credit:
The taxpayer must receive a Certificate of Allocation from us to claim the tax credit on their California personal income tax return. The Certificate of Allocation will state the maximum amount the taxpayer can claim listed by tax year.
The taxpayer should refer to the 2010 New Home / First-Time Buyer Credit Publication for instructions on claiming the tax credit (the publication will be available by December, 2010).
Special rules apply to married/RDP taxpayers filing separately, in which case each spouse/RDP is entitled to one-half of the tax credit, even if their ownership percentages are not equal. For 2 or more taxpayers who are not married/RDP, the tax credit amount will have already been allocated to each taxpayer occupying the residence on their respective tax credit allocation letter.
If the available tax credit exceeds the current year net tax, the unused tax credit may not be carried over to the following tax year.
The tax credit may not reduce regular tax below TMT.
The tax credit is not refundable.
Any disallowance of the tax credit may not be protested or appealed.
Thursday, March 25, 2010
Think Green and how you can save money on your energy bills!
The National Association of Realtors now offers a Green Designation which teaches you how to be the "source" of the "source" of green information. Since I am environmentally conscious and believe we all need to become more Green in the future, I decided to take the course to become Green Certified. I walked away with an abundant amount of information that I will, most likely, share with you via my blog. This entry will focus on some low cost, easy ways you can decrease energy consumption and costs. Please feel free to contact me if you have Green questions! I can point you to the source that can help you! The following information come from www. GeeenandSave.com. GreenandSave indicates that the following retrofits earn over 100% of your original investment in one year. Vistit this site to obtain additional energy efficiency information. Enjoy. Crista :)
Sunday, March 21, 2010
Staging Tips!
I receive articles all the time from various sources and sometimes I receive some information that is worth forwarding to my clients and prospects. Below is one such article. I think it has valuable information in it that may be useful to you in the future. Enjoy!
RISMEDIA, March 19, 2010—(MCT)—Want to sell your home? Get out the bucket, mop and Mr. Clean. The key to making a positive first impression is simple, said Sandra Rinomato, host of HGTV’s popular “Property Virgins” show.
“Get it clean, clean, clean,” said Rinomato. “If your house isn’t clean, it instantly sends up negative thoughts that the home is not well maintained. If your house is spotless, you’re ahead of the game,” she said.
But don’t stop there, advised Rinomato. To increase your chances of making a sale, “stage” the house to make it as attractive as possible. Until recently, “Staging meant pulling out all the stops—setting the dining table with your best china and crystal, arranging flowers, lighting candles,” she said. “Now we take the minimalist approach. Basically, you want to strip the house to its bare essentials, depersonalize it so potential buyers can superimpose themselves and their lifestyle on the house.”
Rinomato offered the following tips for staging a home:
1. Visit model homes and examine shelter magazines for inexpensive decorating ideas. Always keep in mind you are not decorating for yourself but for the general public.
2. Start with the outside. Give the house a fresh coat of paint, add shiny hardware to the front door and plant a few flowers to send a subliminal message the house is loved and well cared for.
3. Declutter every room to make it look larger. Get rid of family pictures, trophies and knickknacks. Closets and drawers should be no more than 30% full.
4. Invest in eco-friendly but bright lights. Open the drapes or remove them completely. “Light, bright rooms give the impression this is a happy place—and everyone wants to move into a happy place,” said Rinomato.
5. Feature only a few pieces of furniture with mainstream appeal. Pull pieces away from walls to make rooms look bigger.
6. Make sure a room’s primary use is obvious. A bedroom should look like a bedroom, not an office, hobby center or gym.
7. Bedrooms and kitchens are difficult to stage because they are in daily use, but make the effort. Clear everything off the counters and nightstands, roll up the rugs and hide the laundry hamper. Buff the cabinets with car wax and clean under the sinks. Invest in pristine white bed linens and towels.
8. Minimize the “pet effect.” Remove food bowls and litter boxes to the utility room. Deodorize thoroughly.
9. Organize the utility room and garage. Hang up the bicycles, roll up the hose. Renting a storage locker is worth the cost if it helps you sell faster and for a higher price.
10. Once your house is staged, invite your friends or Realtor over and walk them through to get an objective opinion.
(c) 2010, The Orlando Sentinel (Fla.).
Distributed by McClatchy-Tribune Information Services.
RISMEDIA, March 19, 2010—(MCT)—Want to sell your home? Get out the bucket, mop and Mr. Clean. The key to making a positive first impression is simple, said Sandra Rinomato, host of HGTV’s popular “Property Virgins” show.
“Get it clean, clean, clean,” said Rinomato. “If your house isn’t clean, it instantly sends up negative thoughts that the home is not well maintained. If your house is spotless, you’re ahead of the game,” she said.
But don’t stop there, advised Rinomato. To increase your chances of making a sale, “stage” the house to make it as attractive as possible. Until recently, “Staging meant pulling out all the stops—setting the dining table with your best china and crystal, arranging flowers, lighting candles,” she said. “Now we take the minimalist approach. Basically, you want to strip the house to its bare essentials, depersonalize it so potential buyers can superimpose themselves and their lifestyle on the house.”
Rinomato offered the following tips for staging a home:
1. Visit model homes and examine shelter magazines for inexpensive decorating ideas. Always keep in mind you are not decorating for yourself but for the general public.
2. Start with the outside. Give the house a fresh coat of paint, add shiny hardware to the front door and plant a few flowers to send a subliminal message the house is loved and well cared for.
3. Declutter every room to make it look larger. Get rid of family pictures, trophies and knickknacks. Closets and drawers should be no more than 30% full.
4. Invest in eco-friendly but bright lights. Open the drapes or remove them completely. “Light, bright rooms give the impression this is a happy place—and everyone wants to move into a happy place,” said Rinomato.
5. Feature only a few pieces of furniture with mainstream appeal. Pull pieces away from walls to make rooms look bigger.
6. Make sure a room’s primary use is obvious. A bedroom should look like a bedroom, not an office, hobby center or gym.
7. Bedrooms and kitchens are difficult to stage because they are in daily use, but make the effort. Clear everything off the counters and nightstands, roll up the rugs and hide the laundry hamper. Buff the cabinets with car wax and clean under the sinks. Invest in pristine white bed linens and towels.
8. Minimize the “pet effect.” Remove food bowls and litter boxes to the utility room. Deodorize thoroughly.
9. Organize the utility room and garage. Hang up the bicycles, roll up the hose. Renting a storage locker is worth the cost if it helps you sell faster and for a higher price.
10. Once your house is staged, invite your friends or Realtor over and walk them through to get an objective opinion.
(c) 2010, The Orlando Sentinel (Fla.).
Distributed by McClatchy-Tribune Information Services.
Wednesday, March 17, 2010
C.A.R. releases 2009-2010 “State of the California Housing Market”
C.A.R. (California Association of Realtors) released the 2009-2010 “State of the California Housing Market”. I think you will be encouraged about their findings!
Affordable home prices, tax credits for home buyers, historically low interest rates, and a large number of distressed properties prompted many first-time home buyers to enter the market in 2009, according to C.A.R.’s 2009-2010 “State of the California Housing Market” report released today.
California’s median home price hit bottom in February 2009 at $245,170. Since then, the median home price has increased steadily in month-to-month comparisons, but remained below 2008 levels throughout 2009. The annual median price is projected to increase to $280,000 in 2010 from $271,000 in 2009.
Homes priced $500,000 or less dominated the sales mix throughout 2008 and early 2009, but peaked at 85 percent in January 2009. Meanwhile, the market share of homes sold for more than $500,000 increased from 15 percent in January 2009 to 25 percent in July 2009, holding steady around that figure for the remainder of last year.
Affordable home prices, tax credits for home buyers, historically low interest rates, and a large number of distressed properties prompted many first-time home buyers to enter the market in 2009, according to C.A.R.’s 2009-2010 “State of the California Housing Market” report released today.
California’s median home price hit bottom in February 2009 at $245,170. Since then, the median home price has increased steadily in month-to-month comparisons, but remained below 2008 levels throughout 2009. The annual median price is projected to increase to $280,000 in 2010 from $271,000 in 2009.
Homes priced $500,000 or less dominated the sales mix throughout 2008 and early 2009, but peaked at 85 percent in January 2009. Meanwhile, the market share of homes sold for more than $500,000 increased from 15 percent in January 2009 to 25 percent in July 2009, holding steady around that figure for the remainder of last year.
Friday, March 12, 2010
What's a better investment?
I am currently working with a buyer prospect who is looking to spent between $350-400k on a townhome in North County Inland area. We have been looking at two and three bedroom townhomes built after 1985. My client asked me a very good question in regards to the resalability of a two bedroom versus a three bedroom. Will a two bedroom be harder to sell than a three bedroom? I thought I would share my response to this question with you.
It may help to rank what I think are bedroom/bath configurations that are the easiest to hardest to sell:
Hardest
1. 1 br/ 1ba - Although the cheapest (and for good reason), these configurations can be very difficult to sell. You are pretty much limited to appealing to a single person or couple. If the home is located in an area where there are predominantly families, this configuration will be the most difficult to find a buyer
2. 2br/1ba - Although you now have two bedrooms, most buyers like to have a dedicated guest bathroom separate from the master bedroom. You may appeal to a few more buyers who dont' care about sharing a bathroom, but this configuration can also be a harder sell
3. 2br/2ba - Now you are getting to a configuration that will serve a lot broader spectrum of potential buyers. A small family perhaps, roommate situation, or just an additional room for an office or guest bedroom with a separate bathroom.
4. 3br/ 2ba - This is one of the most popular configurations to sell. Having three bedrooms and two baths gives a buyer space for a family, office, guest bedroom, etc and two bathrooms are generally sufficient to a prospective buyer
5. 3br/ 2 1/2 baths - This configuration is just icing on the the cake! Having an extra half bath for guests is the ideal situation. You can't go wrong with this configuration, espectially if your home is in the entry level price range
Please let me know if you have any comments or questions on this information. I would be happy to hear from you! Happy House Hunting! Crista :)
It may help to rank what I think are bedroom/bath configurations that are the easiest to hardest to sell:
Hardest
1. 1 br/ 1ba - Although the cheapest (and for good reason), these configurations can be very difficult to sell. You are pretty much limited to appealing to a single person or couple. If the home is located in an area where there are predominantly families, this configuration will be the most difficult to find a buyer
2. 2br/1ba - Although you now have two bedrooms, most buyers like to have a dedicated guest bathroom separate from the master bedroom. You may appeal to a few more buyers who dont' care about sharing a bathroom, but this configuration can also be a harder sell
3. 2br/2ba - Now you are getting to a configuration that will serve a lot broader spectrum of potential buyers. A small family perhaps, roommate situation, or just an additional room for an office or guest bedroom with a separate bathroom.
4. 3br/ 2ba - This is one of the most popular configurations to sell. Having three bedrooms and two baths gives a buyer space for a family, office, guest bedroom, etc and two bathrooms are generally sufficient to a prospective buyer
5. 3br/ 2 1/2 baths - This configuration is just icing on the the cake! Having an extra half bath for guests is the ideal situation. You can't go wrong with this configuration, espectially if your home is in the entry level price range
Please let me know if you have any comments or questions on this information. I would be happy to hear from you! Happy House Hunting! Crista :)
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